Market 2018-04-03 (Auto, Airlines, CBS, and more)

Market recovers roughly half loss from yesterday.

Best in Dow 30: NKE +4%; worst: IBM -0.15%.

USO +0.54%, GLD -0.75%, UUP +0.16%.

News

Trump attacked Amazon (+1.5%) again, not much new information though. Tweet: “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!”

The Japanese central bank has been discussing how to exit smoothly from its massive QE program, but says it's too early to reveal details at this point.

ESPN Plus to debut on 4/12 at $4.99/month.

Facebook (FB +0.5%) is  pulled from Bank of America Merrill Lynch's US 1 list, replaced by NVDA +1.9%. BofAML is staying a Buy on FB.

Winners

US auto market is strong in March. General Motors (GM +3.3%) unit sales +16%, Ford (F +2.7%) +3.4%, Fiat Chrysler Automobiles (FCAU +9.2%) +13%. Mazda +35.7%, Subaru +5.9%, Toyota +3.5%. Volkswagen (OTCPK:VLKAY +2.6%) +17.8%. Nissan -3.7%, along with BMW and Mercedes-Benz all lost market share.

Auto supplier stocks are also higher, led by Dana (DAN +4.3%), Lear (LEA +3.3%), Autolive (ALV +3.6%) and American Axle & Manufacturing (AXL +3.5%).

Tesla (TSLA +6%) reports a production total of 34,494 vehicles in Q1. The tally included 24,728 Model S and Model X vehicles, and 9,766 Model 3s. The company says that in the past week it produced 2,020 Model S vehicles, lower than its 2.5K target set earlier. "In the next seven days, we expect to produce 2,000 Model S and X vehicles and 2,000 Model 3 vehicles," says the company.
Tesla's Q1 deliveries came in at 29,980 vehicles, of which 11,730 were Model S, 10,070 were Model X, and 8,180 were Model 3.

Baker Hughes (BHGE +4.1%) is upgraded by Piper Jaffray to Overweight with $39 PT (from $35). Meanwhile, GE (+0.1%) is attacked by J.P. Morgan's Stephen Tusa again. However, Citi's Andrew Kaplowitz keeps his Buy rating on GE.

Sports goods perform strong today: UA +5.3%, UAA +4.5%, NKE +4%, FL +4.6%.

CBS +4.2%. CBS has submitted its initial bid for Viacom (VIA -6.2%, VIAB -3.7%), to recombine the two companies, although CBS wouldn't offer market value.

Airlines jump Delta Air Lines (DAL +3.4%) reports revenue passenger miles increased 4.3% in March to 18.946B. Domestic RPMs rose 4.2% to 12.217B. ALK +4.1%, UAL +3.6%, AAL +3.4%, LUV +3%.

Tobacco stocks bounce back: MO +3.6%, PM +2.4%, BTI +2.8%...

Losers

WU -1.3%. MoneyGram International (MGI +2%) shoots higher in early trading after Walmart (WMT +1.5%) announces that it's working with the company to launch a low-fee international money service called Walmart2World. Walmart2World is set to launch in U.S. store this month.

Chinese Tech stocks are weak today: BABA -1.7%, NTES -1.7%...

Dave & Buster's Entertainment (PLAY +1.5%) Q4 EPS of $0.61 beats by $0.01. Revenue of $304.91M (+12.9% Y/Y) misses by $0.58M.. FY18 guidance: revenue $1.20~1.24B vs. $1.25B consensus and EBITDA of $255~275M. EPS of $2.32~2.68 vs. $2.80 consensus. Shares -4% in AH.

My Trades Today

Sold DKL @ $28.4
Sold 1/3 NVDA @ $230

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