Market 2018-02-21 (Fed Minutes, FAANG, and more)

Market reversed the course after Fed minutes. 

The Federal Reserve’s January meeting showed officials plan to keep gradually raising short-term interest rates this year. Officials believed in January that the economy was set to grow faster than when they met at the end of last year, some remain worried inflation might continue to lag below the central bank’s 2% target. There are no surprises. Wall Street just uses it as an excuse to sell.

The yield on the benchmark 10-year U.S. Treasury note rose to 2.94%, a fresh four-year high, from 2.90% Tuesday.

At the close, Crude -1.13% to $61.09. Gold -0.38% to $1,326.20. UUP +0.4%.

Best in Dow 30: UTX +2.2%, MCD +0.9%; worst: WMT -2.8%, HD -2%, VZ -2%. It could be buying opportunity for HD after the company reported strong earnings yesterday.

Winners

LZB (+9.9%) jumps after ER beats: Q3 EPS of $0.51 beats by $0.05. Revenue of $413.64M (+6.1% Y/Y) beats by $10.91M.

AAP (+8.2%) also rises after ER: Q4 EPS of $0.77 beats by $0.14. Revenue of $2.04B (-1.9% Y/Y) beats by $20M.

UBNT (+2.5%) bounces back after the -25% hit yesterday. (you may check out my post yesterday)

Techs: FB +1.1%, AMZN +1%, NFLX +0.9%, GOOG +0.8%. These 4 giants hold up, making Nasdaq performs better than Dow Jones and SP500.

Losers

TELL -6.7% on average volume. I added more shares today. $10 is a long time support. I hope it will hold on weekly chart.

WMT -2.8% continues its free-fall after ER, -12.7% in two days. Forward P/E is around 20, dividend yield 2.3% ($2.08/yr).

NVDA -3%, remaining YTD +24.8%.

 Utilities (XLU -1.3%) and REITs (IYR -1.7%) down again.

Earnings in AH


  • Boston Beer (SAM): Q4 EPS of $0.85 beats by $0.06. Revenue of $206.32M (-5.9% Y/Y) in-line. Shares -3.2% in AH.
  • Wendy's (WEN +0.7%): Q4 EPS of $0.11 in-line. Revenue of $309.25M (-0.2% Y/Y) misses by $4.24M. Shares -1.4% in AH.
  • The Cheesecake Factory (CAKE +1.3%): Q4 EPS of $0.53 in-line. Revenue of $571.82M (-5.2% Y/Y) in-line. Shares -3.1% in AH.
  • Jack In The Box (JACK -1.2%): Q1 EPS of $1.23 beats by $0.17. Revenue of $294.46M (-16.6% Y/Y) beats by $10.93M. Shares +1.6% in AH.
  • Avis Budget (CAR -2.5%): Q4 EPS of $0.45 beats by $0.23. Revenue of $2.02B (+7.4% Y/Y) beats by $20M. Shares +7.8% in AH.
  • Roku (ROKU): Q4 EPS of $0.06 vs consensus -$0.10. Revenue of $188.3M (+27.8% Y/Y) beats by $5.76M. Shares -20.6% in AH. I have called it a "pump-and-dump" stock not long ago. The fundamental can barely support its rich valuation.
  • Pandora Media (P -8.6%): Q4 EPS of -$0.21 misses by $0.14. Revenue of $395.33M (+0.7% Y/Y) beats by $18.9M. Shares +8.2% in AH, rebounding after a narrower loss Y/Y and gains in subscription sales.
  • Applied Optoelectronics (AAOI +3.7%) missed ER. For Q1, it's guiding to revenue of $67M-$71M (well short of $86.5M consensus), gross margin of 40.5%-41.5%, and EPS of $0.28-$0.34 (vs. consensus for $0.69). Shares -10.7% in AH.
  • Mellanox Tech (MLNX) jumps 7.2% in AH  after updating its Q1 guidance to revenue of $240~250M (consensus: $227M).
  • Bluebird bio (BLUE +0.9%): Q4 EPS of -$2.52 misses by $0.82. Revenue of $4.17M (+169.0% Y/Y) misses by $2.89M.
  • Anika Therapeutics (ANIK -0.6%): Q4 EPS of $0.38 misses by $0.06. Revenue of $29.4M (+2.3% Y/Y) misses by $0.45M.
  • Realty Income (O -2%) Q4 FFO of $0.61 misses by $0.04. Revenue of $310.65M (+7.9% Y/Y) in-line. Q4 adjusted FFO of $215.6M or $0.76 per share vs. $193.2M and $0.75 one year ago. Full-year AFFO per share up $3.06 up 6.3% from 2016. Expecting AFFO growth 4% in 2018. Shares -1% in AH.
  • Stamps.com (STMP -2.7%): Q4 EPS of $4.68 beats by $1.96. Revenue of $132.47M (+25.1% Y/Y) beats by $12.21M. Shares +8.7% in AH.
  • Gulfport Energy (GPOR -3.7%): Q4 EPS of $0.45 beats by $0.06. Revenue of $338.7M misses by $0.57M. Shares +6.8% in AH.
  • Whiting Petroleum (WLL -4%): Q4 EPS of -$0.17 beats by $0.13. Revenue of $474.4M (+38.4% Y/Y) beats by $54.39M. Shares +1.2%.
  • Energy Transfer Partners (ETP -0.2%): Q4 EPS of $0.57 beats by $0.30. Revenue of $8.61B (+31.9% Y/Y) beats by $620M. Shares +1.5% in AH.

My Trades Today


  1. Bought BGS @ $31.4
  2. Added TELL, average cost $9.65
  3. Doubled down on WMT, average cost $93

Earnings Tomorrow


  • pre-market:   APA, CHK, NEM, SAFM, SDLP, SFM, TPX, W
  • post-market:  BMRN, CENX, FSLR, HLF, HPE, HPQ, INTU, NOG, OLED, RDFN, TAHO, WING, ZIXI

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