Market 2017-11-10 (NVDA, GE, and more)

Market finishes mixed today, which marks 1st red week in two month (was up 8 weeks in a row). Such mild drop is healthy.

Biggest event today --- Alibaba’s (BABA +0.7%) Singles’ Day event is breaking records again, as expected. Last year, the day-long sale brought in $17.8B.

Washington Post reported that more than 200K Americans signed up for coverage under the Affordable Care Act on November 1, the first day of open enrollment, more than double the rate last year.

Customer confidence drops a little from October, but still above 2017 average, which is good for retailers into holiday season.

Winners

NVDA (+5.3%) reported great earnings, sell-side gave up. More short-term upside is expected due to dominant role in AI and fast growth data center. AMD +1.3%, INTC -1.6%, MU +2.9%.

JCP (+15.3%) ER beats, which is surprising because they issued warnings and cut guidance on 10/27 (just 2 weeks ago), thus sending all department stores into a miserable period. M +2.5% (still at $20 resistance as I said yesterday), KSS +4.5%, JWN 0%, TGT +2.5%. Others GPS +3.4%, UAA +4.2%.

GE (+2.5%) finally has some meaningful bounce ahead of investor meeting next Monday. Investors are expecting dividend cut (currently $0.24/quarter), which is negative but probably priced-in. Investors will be happy to see plans for cost-cutting, spin-off or sale of non-essential business. If new CEO John Flannery delivers, GE can jump back to above $22 (or even $24). Otherwise, more downgrades will be on the way.

RAD (+9.4%) CVS (+2.9%) WBA (+2.7%) COST(+1.3%) KR (+0.6%) These stocks bounce back, all of which suffer from amazon fear recently. COST @ $171 is not far away from all-time high ($182.7) if considering $8 dividend paid. KR ($22.1) is 12% above recent low ($19.7).

Moody's says: if the deal breaks down between TWX and T, that's a credit positive outcome for the T. TWX +4.1%, T +0.7%

 DIS (+2%) raises despite ER miss. I have said a lot about Disney recently and called to buy @ $98. They will compete with Netflix with low fee and rich contents (late 2019) --- really exciting.

Losers

Rig counts increase by 9. Energy sector retreats, NOV (-2.9%), APA (-2.5%), SLB (-1.7%), HAL (-1%), XOM(-1.2%), COP (-1%), BP (-1%), TOT (-0.8%).

Certain stocks in health care continue the suffer from opioid crackdown. However, IBB +0.4%

I have no trades today. Have a nice weekend!

Comments

  1. UnknownNovember 10, 2017 at 2:33 PM

    Breaking News: Hasbro Inc. has made a takeover offer for rival Mattel Inc., according to people familiar with the matter, a combination that would unite the two biggest U.S. toy makers. MAT jumps 23% AH to $18 now (+5% during the day).

    ReplyDelete

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