Market 2018-04-05 (FB, MU, Trade War, and more)

Market has a 3-day rally, led by materials (+1.9%), energy (+1.8%), consumer discretionary (+1.4%) and industrials (+1%) today. The tech sector (+0.4%) is lagging, although Facebook jumped +2.7%, Netflix and Amazon each rose more than +1.5%.

Treasury: 30-year -0.47%. 10-yr -0.12%. 5-yr -0.08%. TLT -0.74%.

Crude +0.39% to $63.62. Gold -0.81% to $1,329.40. UUP +0.38%.

Atlanta Fed President Raphael Bostic, a voting member on FOMC, said in an interview that he is comfortable with inflation rising above the Fed's 2% target, which suggests he may favor a less aggressive approach to raising interest rates.

Winners

TSLA +6.5%. It has recovered from $245 to $305 in a week despite the company missing Q1 production target, facing Chinese Tariffs, possible risks of burning cash and raising equity.

FB +2.7% after Zuckerberg answered reporters' questions. Deutsche Bank says worst is over.

AMD +2.6% upgraded by Stifel.

 Energy sector is strong today: MRO +5.7%, RRC +5.4%, EQT +4.1%, NFX +3.6%, CVX +2.5%...

Agriculture stocks bounce back: MOS +4.5%, FMC +4.4%, CF +4%...

Losers

MU -6.7%, UBS initiates MU with a Sell rating and $35 PT. Firm says Micron is likely two quarters away from “significant estimate cuts” as a “wave of DRAM supply” comes closer. LRCX -3.3%, AMAT -2.3%, NVDA -2.2%, WDC -2.1%.

Biotech falls again, IBB -1.6%: VRTX -2.8%, BIIB -2.7%, REGN -2.6%, CELG -1.8%. Barclays cut its PT on BIIB to $295 from $395.

After-hour

PriceSmart (PSMT -0.2%): Q2 EPS of $0.47 may not be comparable to consensus of $0.74.
Revenue of $839.56M (+5.8% Y/Y) beats by $3.54M. Shares +3.3%.

The FDA designates Celgene's (CELG -1.8%) POMALYST (pomalidomide) an Orphan Drug for the treatment of Kaposi sarcoma, a type of opportunistic cancer that strikes people with weakened immune systems such as AIDS patients.

Dumb Trump is asking for tariffs on another $100B Chinese goods. Futures are falling. We will have another bloody day.

My Trades Today

Sold 1/3 TELL @ $8.5 (finally having profit on this one, average cost $8.3, reducing weight with PT $10).

Sold 1/5 LUV @ $57.

Sold 1/5 C @ $70.8.

Comments

  1. UnknownApril 5, 2018 at 7:31 PM

    What’s your opinion on NVDA, worthy holding? Thanks!

    ReplyDelete
    Replies
    1. UnknownApril 5, 2018 at 9:01 PM

      Yes, of course. AI and augmented reality are the future. Graphic processing (GPU) is the most important element. NVDA is ahead of peers by a lot. In the past two quarters, revenue were growing more than 30%. It was more than 50% from 16Q3 to 17Q2. NVDA has beaten ERs for the past 10 quarters. I am still holding some shares, will buy more if it drops to $210 or lower.

      Delete
  2. universal testing machineApril 6, 2018 at 2:43 AM

    Thanks for such a wonderful blog.

    hardness testing machine

    melt flow indexer

    ReplyDelete

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