Market 2018-02-15 (Buffet, Soros, and more)

Market has another strong session. In the past 5-day winning streak, Indices have recovered most of the losses during the correction. Nasdaq (QQQ, +1.8%) is only 2% away from all-time high. Retailer investors are again in the "Fear of missing out" (FoMO) mode.

Crude +1.57% to $61.55. Gold -0.15% to $1,356.00. UUP -0.43%.

On the News

Jobless data may calm the tight labor force worries, as "'bad' news is good news":

  • Initial Jobless Claims +7K at 230K vs. 229K consensus, 223K prior (revised).
  • Continuous Claims: +15K at 1.942M vs. 1.927M prior.

Treasury yields initially jumped before market open, then retreated back with little change. The average rate for 30-year home loans climbed to 4.38%. The 15-year rate averaged 3.84%. Last year at this time, the 30-year and 15-year fixed rates averaged a respective 4.15% and 3.35%.

The Buffett Effect: Buffet has added stake in Teva (TEVA +7.7%) and Apple (AAPL +3.4%), sold IBM (IBM +0.8%). On the other hand, such move hints there are few "value stocks" we can pick right now.

Soros has added overstock.com (OSTK +13%), SNAP (+1%), TWTR (-0.4%) and GOOG (+1.9%); sold FB (+0.3%).

Facebook has shown weakness after the post-ER rally, which may be caused by Zuckerberg unloading his shares. He has sold about $1.6B in Facebook stock over the past two years. He is speeding up to sell 35M-75M shares over 18 months (starting from last fall) to "fully" fund the Chan Zuckerberg Initiative. That means he could sell up to $13.3B worth over the next 13 months (at current pricing). However, I still keep my confidence in FB.

Winners

Tech leads again, Cisco (CSCO +4.7%), Apple (AAPL +3.4%), NFLX +5.4%, NVDA +2.1%, SQ +5.8%.... 

Top Gainers in Dow Jones: CSCO (+4.7%), AAPL (+3.4%), BA (+3.4%), UTX (+3.2%). Only 3 out 30 finish in red: XOM (-0.3%), GE (-0.3%) and UNH (-1.2%).

AMAT +3.9% after strong ER. Stifel maintains a Buy rating and raises its PT from $66 to $71. LRCX +1.5%.

BIDU (+5.2%) continues its rally after ER.

Avon (AVP +9%) after reporting Q4 EPS of $0.12 beats by $0.05. Revenue of $1.57B (flat Y/Y) misses by $30M.

Celgene (CELG +1.9%) amid positive results from a Phase 2 clinical trial evaluating OTEZLA in patients with active ulcerative colitis (UC).

Losers

I have mentioned above, Only 3 out Dow 30 finish in red: XOM (-0.3%), GE (-0.3%) and UNH (-1.2%).

ULTA (-1.3%) continues its sliding after costumer complaints.

Earnings in AH

CBS (CBS +1.6%): Q4 EPS of $1.15 beats by $0.01. Revenue of $3.92B (+11.4% Y/Y) beats by $220M. Shares +0.5%.

Nu Skin (NUS +3.7%): Q4 EPS of $1.20 beats by $0.01. Revenue of $666.2M (+25.4% Y/Y) beats by $0.76M.

Western Gas Equity Partners (WGP): Q4 EPS of $0.45 beats by $0.05. Revenue of $632M (+23.7% Y/Y) beats by $36.76M.

Shake Shack (SHAK +4%): Q4 EPS of $0.10 beats by $0.04. Revenue of $96.14M (+31.2% Y/Y) beats by $3.27M. Shares -2%.

My Trades Today


  • Sold TELL @ $10.2
  • Sold BIDU @ $245
  • Sold V @ $122

Earnings Tomorrow


  • pre-market: CPB, DE, KHC, KO, NWL, SJM

Happy Chinese New Year!

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