Market 2018-01-24 (Dollar, Defense, and more)

Indices are mixed today. Nasdaq manages to recover half of the intraday loss, finishing -0.6%.

Mortgage applications jump 4.5% last week as buyers rush to lock low interest rates. Refi up 1%.

Treasury Secretary Steven Mnuchin says"weak dollar is good for US economy". This is short-sighted and irresponsible, which may trigger trade wars. Moreover, treasury yields will jump if Foreign investors lose confidence in green bills, thus increasing borrowing cost and causing recession. One example is the weak Japanese Yen in recent years. The economy has been trapped no matter how hard its government tries to stimulate. The case in US could be worse.

The weak dollar (UUP -1%) boosts commodities: Crude +2.28% to $65.94. Gold +1.53% to $1,357.20. Once again, pay attention to inflation.

Winner

Financial sector is strong today, GS +2.1%, MS +0.6%, WFC +1.5%, JPM +1.3%, C +1.2%, BAC +0.5%...AIG +3.2%

GWW +18.5% after reporting EPS of $2.94 beat by $0.74, Revenue of $2.63B (+6.5%) beat by $60.00M.

NFLX +4.4% and WHR +4.1% rally again.

Chinese Techs: JD +3.5%, BABA +1.7% on its way to $200, QD +7% (too bad I sold my shares yesterday), YY +1.6%

RCL +4.2% after reporting Q4 EPS of $1.34 beats by $0.14, Revenue of $2B (+4.7% Y/Y) beats by $30M. CCL +3.9%

Defense companies deliver strong earnings. GD +5.8% after reporting Q4 EPS of $2.50 beats by $0.12, Revenue of $8.28B (+8.2% Y/Y) misses by $130M, with improved cash flow and margin. UTX (-0.2%) is relatively quiet after ER beat. RTN +0.9%, LMT +0.5%.

 Biotech companies are also doing well in earnings. NVS +4.8% after reporting Q4 EPS of $1.21 beats by $0.02. Revenue of $12.92B (+4.9% Y/Y) beats by $130M.

 ABT +4.2% after reporting Q4 EPS of $0.74 beats by $0.01. Revenue of $7.59B (+42.4% Y/Y) beats by $200M. However, IBB -0.8% amid profit-taking after a strong YTD run. I expect other biotech companies will report strong earnings.

CMCSA +1.3% after ER beats and dividend & buyback boosts.

Losers

Airlines have a very bad day, as UAL (-11.4%) plans to start "price war" --- to add U.S. capacity over the next 3 years at over a 6% pace. AAL -6%, ALK -6.9%, DAL -5.2%, LUV -4.7%...

TXN (-8.5%) tumbles after ER. LRCX -2.5%, AMAT -1.6%. I will buy if it falls below $100 (around $110 now).

GE -2.6% after reporting  EPS of $0.27 missed by $0.01, Revenue of $31.40B (-5.1%) missed by $2.66B. Power business down 15%. BHGE -5.7% after ER beats. I am very disappointed as GE CEO seems to have no clear picture how to turn the company around. However, I will hold my patience for another 1-2 quarters.

QCOM -0.5% after receiving $1.2B fine from EU antitrust regulators.

DUST -6.3% as gold miners enjoy the gold price breakout.

MAT -2.8% as ToysRUs to close 175 stores.

AH Earnings


  • LVS (-0.3%)  Q4 EPS of $0.88 beats by $0.11. Revenue of $3.44B (+11.7% Y/Y) beats by $170M. Shares +0.9% in AH.
  • CCI (-0.7%) Q4 EPS of $0.17 misses by $0.07. Revenue of $1.24B (+20.4% Y/Y) beats by $90M. Shares +0.7% AH.
  • LRCX (-2.5%) Q2 EPS of $4.34 beats by $0.66. Revenue of $2.58B (+37.2% Y/Y) beats by $10M. Shares +2.9% in AH.
  • F (+0.8%) Q4 EPS of $0.39 in-line. Revenue of $41.3B beats by $4.31B. Shares -0.8% AH.
  • URI (-0.2%) Q4 EPS of $3.34 beats by $0.05. Revenue of $1.92B (+26.3% Y/Y) beats by $40M. Shares -0.6% in AH.
  • WHR Q4 EPS of $4.10 beats by $0.08. Revenue of $5.7B (+0.7% Y/Y) misses by $160M. Shares -0.8%.

My Trades Today

  • Add more PG.
  • Bought GME @ $16.8
  • Bought LUV @ $62
  • Bought BOTZ @ $27

Comments

  1. JasonJanuary 25, 2018 at 1:03 AM

    很好奇，为什么买的BOTZ，而不是AI的个股呢？

    ReplyDelete
    Replies
    1. UnknownJanuary 25, 2018 at 8:34 AM

      在目前高价位，我觉得选个股风险比较大，BOTZ囊括了涵盖全球工业和科技的几十支股，现对来说稳妥一些

      Delete

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