Market 2018-03-07 (MOMO, KR, and more)

Market is mixed today, with Dow Jones down and Nasdaq up. The indices recovered from early selloff amid the fear of trade-war after top Economic adviser Gary Cohn resigned. The bounce-back is helped by a milder tone from White House, saying Mexico and Canada might exempt from tariffs.

Crude -1.96% to $61.37 due to the increase in US crude inventories and production. Gold -0.74% to $1,325.30. US dollar and treasury yields have little change.

Netflix (NFLX -1.2%) CEO Reed Hastings expects the company to bring in $15B this year in subscription revenue as it sticks to its plan to pay up to provide quality content, reports Nikkei Asian Review.

Winners

Autodesk (ADSK +14.9%) after ER beats.

ANF +11.9% after reporting Q4 EPS of $1.38 beats by $0.28. Revenue of $1.19B (+14.4% Y/Y) beats by $30M. It has a great year as stocks were below $9 last July, jump to above $24 today.

 MOMO +9% after reporting Q4 EPS of $0.53 beats by $0.07. Revenue of $386.4M (+57.0% Y/Y) beats by $4.86M. I have mentioned MOMO for a lot of times in my blog. I really like its growth and earning power. However, I prefer YY now after its selloff after strong ER. YY +6.4% today. If you have followed my "BUY" suggestion yesterday, you could have bought @ $118 today, enjoying $8/share gain already. My Target Price on YY is $160 in 2018.

EDIT +10% despite ER misses. This biotech company is red-hot, difficult to estimate true value because it is a possible takeover target.

AMD +4.1% amid takeover rumor, WDC +1.6% hitting 52-wk high.

FB +2.2%, GOOG +1.3% help Nasdaq to hold up.

X +2.6% NUE +2.5%, CENX +3.9%, AA +1.9%... as steel and aluminum up again.

Losers

Energy sector is the worst today, XLE -0.8%.

 Dollar General (DLTR -14.6%) after ER misses. DG -4.3%

 KR -6.4% lower ahead of ER tomorrow morning.

BGS -9% after being downgraded by Credit Suisse. The timing is strange because BGS reported ER last week. I sold all my shares yesterday, and bought back some today.

Earnings in AH

Costco Wholesale (COST -2.1%): Q2 EPS of $1.42 misses by $0.04. Revenue of $33B (+10.8% Y/Y) beats by $280M. Shares -0.9% in AH.

THO (+0.7%) Q2 EPS of vs consensus $1.79. Revenue of $1.97B (+23.9% Y/Y) beats by $40M. Shares +4% in AH.

 Caesars Entertainment (CZR +1.2%): Q4 EPS of $2.48. Revenue of $1.9B (+100.2% Y/Y) misses by $110M. Shares +3.2% in AH.

Craft Brew Alliance (BREW +2%): Q4 EPS of $0.05 beats by $0.01. Revenue of $45.97M (+0.4% Y/Y) in-line.

My Trades Today

  • Bought BGS @ $27.8
  • Bought DKL @ $28.6

Earnings Tomorrow

  • pre-market:   AEO, FCEL, KR, PRTY, WUBA
  • post-market:  INSY, LOCO, MRVL, OMED, PAY, UNFI

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