Market 2017-11-16 (WMT, SJM, ROST, GPS, and more)

The market shows fresh strength today, lead by tech (Cisco) and consumer goods (Walmart, SJM). House passed its tax reform bill. Now it is up to Senates.

Winners

Walmart (WMT +10.9%) reported solid earnings this morning, beat both top and bottom lines. E-commerce grows fast. Comparable-store sales rise more than expected. Share price hit new-high.
I would like to share some of my thoughts: as minimum wage increases and unemployment rate drops, WMT is in great shape. Dollar Stores (e.g., Dollar General) and Discount Stores (TJM and ROST) are in similar situation. However, the shrinking of middle-class causes headwind for department stores and Target (TGT), on top of the headwind from Amazon.

Cisco (CSCO +5.2%) reported earnings yesterday AH and raised guidance amid strong software sales.

J.M. Smucker(SJM +9.5%) smashed estimates, which lifted the whole Staples Sector.

Also benefited from earnings, RH (+25.4%) and NetApp (NTAP +15.9%) both jumped higher.

 TIME (+28.5%) is up for sale. It will be sad for it to be right-wing publisher.

Pandora (P +4.6%) jumped after receiving upgrate from BMO.

There are many other winners, such as  PYPL (+5.8%), AMAT (+3.7%), ESRX (+4%), and so on.

In AH:

Ross Stores (ROST): Q3 EPS of $0.72 beats by $0.05. Revenue of $3.33B (+7.8% Y/Y) beats by $60M. Shares +7%.

Gap (GPS): Q3 EPS of $0.58 beats by $0.04. Revenue of $3.84B (+1.1% Y/Y) beats by $80M. Shares +5%. The other day I went to Athleta store with my wife. I was shocked by the high price tag and heavy traffic in store (wide age range of female). There was no on-sale promotion, and price was similar to Lululemon --- totally different marketing from Old Navy or Gap. In the ER, Athleta is included in Others, which revenue jumped from 172 M a year ago to 200 M. This is very encouraging and I plan to hold my long position.

Losers

Energy and Utilities Sectors finish in red despite the broad market bounce back.

Mattel (MAT -0.6%) rejected HAS's take-over offer.

Viacom (VIA -2.1%) due to mixed Q3 results.

Best Buy (BBY -3.5%) also suffers from ER miss.


My Trades Today

Sold MOMO @ $32.4 (11% profit in 2 days, I wish I had bought more).

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