Market 2018-05-09 (Crude, WMT, BKNG, and more)

Energy (XLE +2%) led stock market for another rally day, utilities extend yesterday's big drop XLU -0.7%. JPMorgan Chase CEO Jamie Dimon said that people should prepare for benchmark Treasury yields to rise to 4%.

Treasury yields move higher: 30-year -0.46%. 10-yr -0.18%. 5-yr -0.09%. TLT -0.6%.

Crude +3.04% to $71.16. Gold -0.13% to $1,312.00. Some traders are predicting $80~$85 crude price now. Who will benefit from high oil price? Shale players, Russian, Canada, Saudi Arabia.... Who will lose? Industrials (high energy/material cost), airlines (transportation), and us as consumers. Be careful that the inflation may be out of control if US starts War against Iran. 

Winners

MU +5% after analyst cites "exceptional" cloud computing business. NVDA +2.1% ahead of ER tomorrow.

 TRIP +22.8% after ER.

LC +20.6% after ER, short-squeeze.

EA +5.8% after reporting Q4 EPS of $1.95. TTWO +4.2%, ATVI +2.4%.

QCOM +0.6%, adds another 2.2% in AH as the board approves a new $10B stock repurchase program, effective immediately. The program replaces the $15B program announced in March 2015, which had $1.2B left.

Losers

DOV -18% despite ER beats. Not familiar with this stock.

 MNST -7.5% as margin shrinks.

Airlines go lower amid rising oil price. AAL -3.5%, UAL -2.8%, LUV -1.5%, DAL -1.4%...

WMT -3.1% as the news Walmart is acquiring Indian e-commerce player Flipkart (FPKT), confirmed by Softbank CEO. Recently Walmart has sold its business in UK, and moved focus to emerging markets. I think it should be considered as good news.

 DIS -1.8% drops again after ER beats, unbelievable.

Earnings in AH

Booking Holdings (BKNG): Q1 EPS of $12.00 beats by $1.33.
Revenue of $2.93B (+21.1% Y/Y) beats by $60M.
Shares -7.5%.

ANGI Homeservices (ANGI): Q1 EPS of -$0.02 beats by $0.02.
Revenue of $255.3M (+69.4% Y/Y) beats by $0.44M.

Twenty-First Century Fox (FOXA): Q3 EPS of $0.49 misses by $0.05.
Revenue of $7.42M (-1.9% Y/Y) beats by $0.01M.

Albemarle (ALB): Q1 EPS of $1.30 beats by $0.09.
Revenue of $821.6M (+13.8% Y/Y) beats by $18.24M.
Shares -1%.

CenturyLink (CTL): Q1 EPS of $0.25 beats by $0.07.
Revenue of $5.95B (+41.3% Y/Y) misses by $50M.
Shares +3.4%.

Roku (ROKU): Q1 EPS of -$0.07 beats by $0.08.
Revenue of $136.6M (+36.5% Y/Y) beats by $9.45M.
Shares +3.1%

My Trades Today

Sold FB @ $182 (I have mentioned short-term target $180 after FB ERs) I will buy back the shares if FB falls to $160s.

Added more WMT shares

Comments

  1. SteveMay 9, 2018 at 4:16 PM

    Are you still holding YY?

    ReplyDelete
    Replies
    1. UnknownMay 9, 2018 at 7:13 PM

      Yes, I sold half yesterday, still holding quite some, target price $120 by the end of this year.

      Delete
  2. HuygensMay 10, 2018 at 9:22 AM

    Will FB fall below 160 again?

    ReplyDelete
    Replies
    1. UnknownMay 10, 2018 at 10:33 AM

      I think it depends on the overall market. If we have another correction later this year, it is possible. Otherwise, it will stay strong. Another headwind is the EU New Privacy Law, which will be effective on 5/25. FB may have some selling pressure from that. The impact is still unclear. I think, as long as every company follows the same law, Google and Facebook will continuously dominate online Ads space. Amazon is also gaining market shares as the 3rd player.

      Delete

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