Market 2018-05-15 (Retail Sale, Interest Rates, and more)

Indices drop as rates raise again. 10-year treasury yield jumps to 3.074%. TLT -1.13%.

Crude +0.27% to $71.15. Gold -2.02% to $1,291.60, drops to lowest in 2018, as US dollar holds strength, UUP +0.6%.

Winner

Retail sales were up 4.7% in April Y/Y. Categories with strong growth included clothing/clothing accessories (+4.1% Y/Y) and furniture/home furnishing stores (+6.1% Y/Y). KSS +3.3%, BBBY +2.5%, GPS +2.6%, UAA +2.4%, NKE +1%, DKS +1%...

Macy's (M +1%) trades higher ahead of tomorrow's Q1 ER. Analysts expect the retailer to disclose revenue of $5.43B and EPS of $0.37. Full-year guidance from management will be a crucial test to see if new initiatives are starting to pay off. Consensus estimates are for Macy's to guide for revenue of $24.79B and EPS of $3.59.

 WDC +2.3%, MU +1.9% both continue to bounce back. Stifel raises its MU PT from $95 to $101.

SQM +2.1%, Chinese lithium company Tianqi near deal to buy stake in Chile's SQM. ALB +1.6%.

 MAT +6.5% as volatility increases.

Losers

HD -1.3% after mixed ER. Q1 EPS of $2.08 beats by $0.02. Revenue of $24.95B (+4.4% Y/Y) misses by $270M. The company blamed the rev miss on bad weather in Q1. Rev up double digits in May so far.

Home builders are sold off as Treasury yields march higher. ITB -3.8%: LEN -5.7%, DHI -6.7%, PHM -5.4%, KBH -4.4%, TOL -4.4%, HOV -4.4%...

A -9.6% after giving lower-than-expected guidance.

 VIPS -20% after mixed ER and disappointing guidance.

 NVDA -3.9% probably due to profit-taking.

TSLA -2.7%, plans a six-day pause at the end of May in production at its Fremont factory in order to make some assembly line fixes. Morgan Stanley drops margin forecasts, as well as PT from $376 to $291.

No Trade Today

Comments

  1. SteveMay 15, 2018 at 5:06 PM

    Any analysis on $MU? Thanks.

    ReplyDelete
    Replies
    1. UnknownMay 15, 2018 at 5:40 PM

      I have a post on WDC about half year ago, including MU, STX and INTC. I still prefer WDC over MU. http://defeatmarket.blogspot.com/2017/12/a-close-look-of-wdc-stx-also-mu-intc.html

      Delete
    2. SteveMay 15, 2018 at 8:10 PM

      Great. thanks.

      Delete
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