Market 2018-03-13 (GE, QCOM, and more)

Market opened high, trended low. 

Healthcare (IYH +0.1%) and Utilities (XLU +0.2%) become the safe-harbor. In Dow 30, best are UNH +1.9% and JNJ +1.3%; worst is GE -4.4%. GE gets hurt by JPM again, with new PT $11. JPM was the first cutting PT to $16, then $14, not long ago. Wait for the shareholders meeting in April to have better idea.

Crude -1.21% to $60.62. Gold +0.42% to $1,326.40. UUP -0.2%, TLT +0.53% as treasury yields drop a little.

News

State Secretary Tillerson was fired, along with another aide McEntee (security clearance issue). New Secretary will be Pompeo. What does it mean for stock market? Since Pompeo is a loyal dog to Trump, harsh and uncertain foreign policies are expected, which will cause more volatility.

Trump kills QCOM/Broadcom deal. QCOM (-5%) is hit hard. Broadcom may pursue other chipmakers.

Volkswagen AG (VLKAY -2.5%) FY EPS of €22.63. Revenue of €230.68B (+6.2% Y/Y). The company secured $20B euros in battery supplies to underpin an aggressive push into electric cars in the coming years, ramping up pressure on Tesla Inc. and other automakers.

Winner

M +3.7%, CEO Jeff Gennette issued a positive outlook on sales growth this fiscal year.. Sears Holdings (SHLD +4.5%), Kohl's (KSS +1.7%) and JWN +1%. 

DSW +10.7% despite mixed ER: Q4 EPS of $0.38 beats by $0.11. Revenue of $719.98M (+6.7% Y/Y) misses by $8.19M. Share were down -5.1% pre-market before jumping higher.

DKS (+1%) also has a wild day, swing from big loss to gain. Q4 EPS of $1.22 beats by $0.02. Revenue of $2.66B (+7.3% Y/Y) misses by $70M. Consolidated same-store sales fell 2.0% during the quarter. However, UAA -3.6%, NKE -1%.

CENX +3.7% after upgrades.

Airlines are in green today as Airline fares edged up 0.6% M/M in February: LUV +1%, UAL +0.8%, DAL +0.8%, AA +0.5%...

 INTC, WDC and MU also manage to finish green.

Losers

X -7.6% hit by downgrade

FANNG: FB -1.6%, GOOG -2.3%, AAPL -1%, AMZN -0.6%, NFLX -1.7%. Others hot techs: MSFT -2.4%, SNAP -3.3%, TWTR -3.9%, SQ -2.6%...

Chinese Tech are down as well: JD -3.7%, BIDU -2.8%, BABA -2.2%, NTES -0.9%, QD -7.8%, YRD -3.1%...

My Trades Today

Sold ULTA @ $212.4
Added more CI to bring average down to $167

Earnings Tomorrow

pre-market:  ARNA, EXPR, PUK, SIG, XNET

post-market: DDD, NDLS, RUBI, TACO, WSM, YRD

Comments

  1. UnknownMarch 13, 2018 at 7:06 PM

    中概今天到底怎么回事，难道和Tillerson有关？听说Pompeo对中国不感冒？ double down JD, 拼了。今天小盘的home improvement, builders好像很不错，大概是inflation report好于预期市场预期cost increase和Fed 加息不会很激进吧？纳指是要歇息以下了，否则容易在某个时间点崩盘。

    ReplyDelete
    Replies
    1. UnknownMarch 13, 2018 at 9:54 PM

      今天CNBC上有一篇：“Cramer: Picking Pompeo as top US diplomat sends a message to China — 'You are our enemy'”。不过中概的生意基本上都在中国国内，就算贸易战也影响不太大，还是要看中国经济的形势。暂且不管政治影响，改宪对于经济应该是有利的，保证了政策的延续性。这些年中国经济转型软着陆还算成功，地方债务控制也在加严，降低了经济崩盘的危险。如果全球再来一次金融危机，到时候恐怕又是天朝来救场

      Delete
    2. UnknownMarch 14, 2018 at 5:28 AM

      Pompeo看上去基本就是个yes boy. 主要还是看Trump对中国的态度，Trump指东他不敢往西。Trump估计表面上近期不会很难为中国，脚下弄点小绊子。不过要是他真和金三胖子修好，也许底气足了，在朝鲜半岛上可以踢开中国了，到时候也许他头脑一热就撕破脸了。主要是中国在美国收购扩张啥的，估计很难了。

      Delete

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