Market 2018-05-04 (Buffett, BABA, and more)

Unemployment rate drops to 3.9%; Salary +2.6% below expected, which ignites the stock market into rally mode today.

The million dollar question is: how long will this rally last? As the trade war threat looms, I think it won't be long.

Today's strong showing was not enough to offset weekly losses for the Dow and S&P, as each fell 0.2%, while the Nasdaq recorded a 1.2% gain for the week.

TLT +0.15%, USO +1.95%, GLD +0.21%, UUP +0.12%.

All Dow Jones companies post gain today except CVX (-0.4%), led by AAPL (+3.9%).

Buffett bought another 75M shares of AAPL in Q1, got completely out of IBM. This explained the performance of both AAPL and IBM in 2018. So what now? AAPL jumped 3.9% to all-time-high today. It is also actually good news for IBM, as the selling pressure becomes lower now.

Winners

AAPL and its suppliers. For instance, OLED reversed the big drop yesterday AH, finished +12.4%; SWKS +4.3% despite downside guidance.

BABA +3.5% after solid ER. Stock price will test $200 again soon.

WING +8.4% to all-time high.

BGS +10.6% after ER beats, organic growth.

P +19.8% a typical short-squeeze.

CBS +9.1% after ER beats.

 KHC +5.8%, NWL +3.6% after ERs show some strength in staples sector.

SBUX +2.8%, is selling its retail coffee products business to Nestle (OTCPK:NSRGY). The deal is reportedly for the part of the business that sells coffee beans and packaged drinks at retail outlets, not the store chain or the coffee purchasing business. The company could bring in as much as $3.79B on an after-tax basis.

Third Point pushes for United Technologies (UTX +1.5%) to split into three businesses.

NVDA +2.6%, MU +2.1%, QCOM +4.2%, INTC +1.5%, AMD +3.2%, AMAT +3.6%, LRCX +3.2%. SOXX +2.4%. However, WDC is still under-performing, only +0.4%.

Losers

SNAP -2.1% continues to fall. It closed @ $10.8. I am not a buyer yet.

Department stores are lagging today: JCP -4%, KSS, TGT, M all posted loss.

My Trades Today

Sold BGS
Day-traded YY, $93.6 --> 96.6

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