Market 2017-12-19 (MU, AAPL, and more)

Market remains high and volatile as the New Year approaches, as I predicted at the beginning of Dec.

The final version of the GOP's tax reform bill passed in the House on Tuesday, sending it on to the Senate, where it's also expected to pass later today.
Although it passed along party lines and is considered token legislation for the Republican Party, 12 Republican voted "NO", 9 from New York & New Jersey, 3 from California.

U.S. Treasury prices slipped, the benchmark 10-year yield higher at 2.46%.

Bloomberg reports that YouTube (GOOG -0.6%) signed long-term agreements with Sony (NYSE:SNE) and Universal Music (OTCPK:VIVHY), which moves the company’s paid music service one step closer to reality.

Winners

Jack In The Box (JACK +3.1%) jumped after agreeing to sell its Qdoba Restaurant business to Apollo Global Management for $305M.

Energy Sector: MRO +3.8%, NBL +3.6%, HP +2.8%.

CCL (+2.3%) reported solid ER depite the impacts of hurricanes.

Disney (DIS +0.7%) Star Wars The Last Jedi scored $450M box office globally last weekend, 2nd in history. Go see it if you haven't. I really like it, better than the Force Awaken (2015).

In AH, MU reported Q1 EPS of $2.45 beats by $0.25. Revenue of $6.8B (+71.3% Y/Y) beats by $410M.  Q2 guidance has revenue from $6.8B to $7.2B (consensus: $6.21B) and EPS from $2.51 to $2.65 (consensus: $2.03). Share +4% AH. WDC adds 0.9% on top of 0.7% in regular hours. INTC added 0.2% on top of 1.7% in regular hours.

FedEx reported Q2 EPS of $3.18 beats by $0.29. Revenue of $16.3B (+9.2% Y/Y) beats by $620M. Shares +2.5% AH. UPS +1%.


Losers

Lots of stocks gave back some of recent gains, which is not surprising.

AAPL (-1.1%) received rare downgrade from Nomura Instinet --- from Buy to Neutral and lowers the PT from $185 to $175. Analyst Jeffrey Kvaal says “the stock’s gains for the iPhone X supercycle are in the late innings” and thinks unit growth, if not ASP growth, is baked into the consensus and full multiple.

REITs: MAA -3.4%, HCP -3.3%, UDR -3.1%, O -2.5% ...

My Trades Today

Initiate position in MAA @ $99.2. MAA is a real estate investment trust focusing on apartments.

Comments

  1. UnknownDecember 19, 2017 at 7:36 PM

    House need to vote again tomorrow. And the Senate will vote shortly afterwards.

    ReplyDelete

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