Market 2018-03-29 (End of March with a Rally)

Market finally turns green today, led by Energy and Tech rally. Market will be closed tomorrow (Good Friday). For March, Market has experienced a choppy month, Dow Jones -3.7%, S&P 500 -2.7% and Nasdaq -2.9%.

Despite the stock market rally, Treasuries still attract buyers today so that yields drop further: 30-year +0.49%. 10-yr +0.16%. 5-yr +0.08%.

Crude +0.84% to $64.92. Gold +0.09% to $1,325.40. UUP -0.08%.

Grains Jump as US Farmers Poised to Plant Less Soy, Corn. SOYB +2.4%, CORN +3.7%.

News Today

Russia will expel at least 150 Western diplomats, including 60 from the U.S., and close the American consulate in St. Petersburg. The move comes following the alleged nerve attack on U.K. soil of a former Russian double agent and his daughter. The U.K. blamed Russia for the attack, and more than 20 EU and NATO member countries expelled more than 100 Russian diplomats in response.

Nvidia (NVDA +5%) CEO Jensen Huang says Uber doesn’t use his company’s DRIVE self-driving platform architecture. Uber uses Nvidia’s GPUs and “develops its own sensing and drive technology.”

An internal e-mailed leaked to Bloomberg indicates that Tesla (TSLA +3.2%) is placing a high priority in pushing up its production run rate on Model 3s this quarter. Tesla VP of Production Peter Hochholdinger told employees on March 21 that the company was looking to squeeze out more Model 3 production by suspending the Model S and Model X lines for several days, and give some employees the option to pitch in with the Model 3 line. Another e-mail dated March 23 from a different Tesla manager stated that it would be an "incredible victory" if the company could hit a production run rate of 2.5K per week by March 31. The Bloomberg Tesla Model 3 Tracker currently shows an estimate of 1,026 vehicle per week (way behind) and a total of 11,511 vehicles.

AMZN (+1.1%) was attacked by Trump again this morning on Twitter. Shares were down more than 3.5% before bouncing back to green zone.

Winners

Tech sector (QQQ +1.8%) is fighting back after recent big drop: NVDA +5%, INTC +4.5%, LRCX +3.5%, AMAT +2.9%, FB +4.4%, SQ +3.8%, NLFX +3.4%, GOOG +2.7%...

Energy sector (XLE +2.1%): TELL +9.9%, MRO +5.4%, CXO +4.9%, APA +3%, APC +2.6%...

FMC +4.7% after saying it expects Q1 adjusted EPS to exceed the high end of its prior guidance range of $1.45-$1.59 and FY 2018 adjusted EPS to beat the top end of its prior guidance of $5.20-$5.60. TSCO +5.1%

Losers

GME -10.8% despite ER beats. BAML (Bank of America Merrill Lynch) downgrades GME to Underperform and $11 PT. Current forward P/E is unbelievably low 3.66 (12.62/3.45), and dividend yield is 12% ($1.52/year, vs $12.62 stock price).

Big data firms are lower after Facebook tightens its data sharing. ADS -4%, NLSN -1.5%

 GE -1.5%, J.P. Morgan's Stephen Tusa reiterates his Underweight rating and $11 PT (lowest on Street, he is longtime bear) for General Electric shares following this week's speculation that Warren Buffett might acquire a stake in the company.

Walgreens WBA -3.1% turns lower after earning call. UHS -2.5%, CVS -0.8%.

My Trades Today

I sold some Tech shares to reload my bullets.

  • Sold NVDA @ $235.2 for 6% profit in 2 days.
  • Sold 1/5 FB @ $161, too many FB shares making me nervous these days.

Comments

  1. UnknownMarch 29, 2018 at 3:21 PM

    I just plan to buy FB...

    ReplyDelete
    Replies
    1. UnknownMarch 29, 2018 at 3:54 PM

      I still have a lot of shares. I believe it can go back to $180 in near future.

      Delete
    2. UnknownMarch 29, 2018 at 7:03 PM

      今天看了看FB没买。开盘入了SQ RNG EA。卖了马鬃，算是怕了trump了，暂时避避风头。

      Delete

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