Market 2017-11-15 (YY, GNC, USO, and more)

It is a global selloff today. Japan -1.6%, Hong Kong -1%, FTSE 100 -0.6%. 

However, I think there are no reasons to be panic yet. Retailers show some strength. On a Y/Y look, electronics/appliance stores (+2.1%), general merchandise stores (+1.4%), clothing/accessories stores (+0.4%), furniture/home furnishing stores (+4.8%) and health/personal care stores (+4.8%) all posted gains. Online retailers generated sales growth of 9.6% during the month compared to last year.

Winners

YY （+23.8%） hit all-time high after a strong beat in its Q3 earnings.

Vitamin Shoppe (VSI +9.7%) and GNC Holdings (GNC +6.4%) jump on the news that Vitamin World is seeking permission from a bankruptcy court to begin the process to close 124 stores (1/3 of total) that it operates.

Biotech (IBB +0.4%) has a small bounce today. CELG +1.5%, GILD +0.9%.

Cisco (CSCO) reported Q1 EPS of $0.61 beats by $0.01. Revenue of $12.14B (-1.7% Y/Y) beats by $30M. Shares +4% AH.

Losers

Energy sector struggles again. US crude oil (USO -0.3%) fell for the fourth straight session after the EIA reported a surprise rise in crude and gasoline inventories. Weekly inventory data is a tool the Street manipulate the market --- it will make more sense to report 4-week average inventories. Nevertheless, crude price will hang around $55 before any meaningful news --- either Middle East tension or increasing rig counts.

Target (TGT -9.9%) after disappointing profit guidance for Q4. in Q3, EPS of $0.91 beats by $0.05 Revenue of $16.67B (+ 1.4% Y/Y) beats by $70M.

Apple (AAPL -1.3%) Wells Fargo gives market perform rating, Bershire increased position, Soros cut position. China smartphone sales dropped 8.1% in October. Foxconn reported 39% profit drop (iphone X late rollout to blame?).

Alibaba’s (BABA -0.2%) recovers the early loss. Digital Media and Entertainment Group head Yu Yongfu will step down on 12/1 after the division reported $513M in Q2 losses.

Amazon (AMZN -0.9%) privately blamed USPS for unreliable deliveries, which results that Amazon need to shut down part of its Amazon Fresh grocery delivery service in 9 states. More on news: Bloomberg reports that the company’s Amazon Go stores (cashier-free) are closer to going public. I am not sure such stores can work for profit.

LB down 4% in AH after reporting in-line EPS and revenue beat.


My Trades Today

Bought OHI @ $27.3. Glad to buy back my shares which were sold @ $28.6 yesterday.


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