Market 2018-02-23 (MOMO, BUFF, and more)

The day started with semiconductor sector (QQQ +2%) and energy sector (XLE +2.2%) rally. It turned into a broader rally in the afternoon amid no particular news. Fixed-income sector (Utilities XLU +2.6%, REITs IYR +1.7%) has some relief after the 10-year Treasury yield dropped from 2.93% to 2.87%.

Crude +1.24% to $63.55. Gold -0.14% to $1,330.90. UUP +0.2%.

The FED semi-annual report comes ahead of semi-annual Congressional testimony next week from the new Chairman Powell. There are no hints for more or less than 3 interest hikes in the report. "The labor market appears to be near or a little beyond full employment at present," say the Phillips Curvers at the central bank.

Other News

Microsoft and Xiaomi will collaborate on cloud, AI, and hardware.

Big companies are cutting ties with NRA (National Rifle Association): Symantec, the cyber security company; Metlife; First National Bank of Omaha; Enterprise Holdings.

Winners

Semiconductor Sector (ETF:SOXX +2.1%; 3x ETF: SOXL +6.4%) has a big rally toay. Samsung will invest $6B into a new fab line for next-gen integrated circuits to strengthen contract chipmaking in case the memory chip boom wears off. MU +5.2%, INTC +4.2%, WDC +4.2%, LRCX +2.5%

MOMO Momo (MOMO +17.1%) announces the acquisition of dating app Tantan for a combination of shares and cash. Buy by New Street Research with $45 PT. YY +5%.

CNBC reports that the Nordstrom (JWN +6.6%) family is looking to lock down a go-private deal before the company reports earnings on March 1.

TTD +23.8% after ER beats.

Blue Buffalo Pet (BUFF +17.2%) is bought by General Mills (GIS -3.6%).

Losers

Universal Display (OLED -15.8%) after downside guidance.

First SOlar (FSLR -6.8%) after ER misses.

LendingClub (LC -10.7%) continues its free-fall after ER. Today it is downgraded at Guggenheim as competition intensifies in small-loan platform.

My Trades Today


  • Sold WDC @ $88.88
  • Sold FB @ $183, I will buy back my shares below $176 if possible
  • Added LC @ $3.4

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