Market 2018-04-13 (Black Friday Version)

Big banks kick off the new earning season. JPM, C and WFC all beat expectations. However, a selloff in Financial Sector drags down the market, XLF -1.5%. Well, it is Black Friday anyway.

Trade war? No trade war? Syria war? No Syria war? Quit TPP? Rejoin TPP? NAFTA? No NAFTA? What is wrong with America! This is toxic.

Treasurys: 30-year +0.28%. 10-yr +0.07%. 5-yr +0.03%. TLT +0.23%.

 Crude +0.27% to $67.25. Gold +0.42% to $1,347.60. UUP flat.

The total U.S. rig count rose by 5 to 1,008, according to the latest weekly survey from Baker Hughes. Oil +7, Gas -2.

U.S. Job openings lower than anticipated. 6.052M job openings in February vs. 6.143M consensus, 6.312M prior.

Rolls-Royce warns of extra inspections of Trent 100 engines on Boeing (BA -2.4%) 787 Dreamliners that would lead to further disruptions for airline customers and consume more cash. Boeing says ~25% of in-service 787 Dreamliners use the Trent 100 engine and is deploying support teams to mitigate service disruptions; General Electric (GE +2.4%) engines used on some 787s are not affected. To keep it simple: good news for GE, bad news for BA. Also on news: private-equity shop Veritas earlier this month announced a $1.05B deal for parts of GE's healthcare business.

Musk said TSLA (+2.1%) would be profitable during this year's Q3 and Q4 and would not need to raise any money from investors. Do you believe him? I don't, the cash-burn speed is ramping higher.

Gilead (GILD -0.1%) combo therapy for NASH shows encouraging action in proof-of-concept study。 The company has initiated a Phase 2b study. Preliminary data from two Phase 3 studies should be available in H1 2019. GILD is currently betting on two main pipelines as potential blockbuster drugs: NASH and CAR-T (Kite).

FB +0.4% is getting stable after all the recent drama. Investors are now focusing on its next earnings (4/25). Other FAANG:  NFLX +0.8%, AAPL +0.3%, GOOG -0.3%, AMZN -1.2%...

Bank investors are selling earnings beats from JPMorgan (JPM -2.7%), Citigroup (C -1.6%), and Wells Fargo (WFC -3.4%), and miss on PNC Financial (PNC -4.6%).
  • JPM Q1 EPS of $2.37 beats by $0.08. Revenue of $28.52B (+10.3% Y/Y) beats by $860M.
  • C Q1 EPS of $1.68 beats by $0.07. Revenue of $18.87B (+2.7% Y/Y) in-line.
  • WFC Q1 EPS of $1.12 beats by $0.05. Revenue of $21.9B (-1.8% Y/Y) beats by $160M.
First Republic Bank (FRC +1.3%) after ER beats. Q1 EPS of $1.13/share, Revenue of $720.9M (+19.9% Y/Y). It is among few banks in green today. Its strategy of focusing on student loans is being paid off.

Chinese Internet companies continue to slip amid concerning the policy tightening. I believe it is temporary. New regulations may benefit major players by eliminating small ones. WB -6.9%, SINA -5.5%, Tencent -3.2%, BZUN -6.6%, WUBA -2.6%, YY -5.7%， MOMO -2%, BIDU -1.4%, NTES -1%, BABA -2.2%, JD -2%...

My Trades

Bought JPM @ $110.4
Added more C (sold half position yesterday)
Added more YY (really painful recently)

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