Market 2018-05-16 (M, Tencent, and more)

Bulls win today despite rising rates, as strong earnings from Tencent and Macy's boost investors confidence.

30-year -0.24%. 10-yr -0.15%. 5-yr -0.08%. TLT -0.38%.

Crude +0.27% to $71.50. Gold -0.03% to $1,289.90. UUP +0.24%.

Winners

Macy's M +10.8%:
Q1 EPS of $0.42 beats by $0.07. Revenue of $5.54B (+3.6% Y/Y) beats by $150M.
Owned plus licensed comparable sales increased 4.2% during the quarter and owned basis comparable sales were up 3.9% to sail past analyst expectations. Operating income improved to 4.3% of sales from 4.1% a year ago.
Macy's expects sales growth of -1.0% to +0.5% and lifts full-year EPS guidance to $3.75 to $3.95 for FY18 vs. $3.60 consensus, meaning forward PE will be only 8.6.

Other retailers are also up: XRT +1.6% (retail ETF), UAA 8.7%, UA +6.9%, KSS +1.9%, JWN +2.4%, TGT +2.9%, COST +1.7% (very close to $200 now), WMT +1.9%, NKE +2.7%, LB +2.6%, GPS +1.3%...

DIS +2%. As I said after earnings, the selloff after that was ridiculous. Since then, share price has recovered from $99 to $105 in a week.

WDC +4.9%, MU +4.6%, AMD +3%. I sold WDC today to take the profit after a strong week.

TCEHY +6.8% after strong earnings, as game revenue soared. BIDU +4.5%, BABA +0.8%, JD +0.9%.

Biotech raises ahead of ASCO abstracts release, XBI +1.3%, IBB +0.9%.

Losers

CELG -0.8% continues to struggle.

FB -0.6% is in the phase of consolidation after recent run.

Earnings in AH

Cisco (CSCO): Q3 EPS of $0.66 beats by $0.01.
Revenue of $12.46B (+4.4% Y/Y) beats by $20M.
Shares -4.4%.

Take-Two Interactive Software (TTWO): Q4 GAAP EPS of $0.77 misses by $0.19.
Revenue of $450.3M (-21.2% Y/Y) beats by $5.74M.
Shares -1.4%.

Jack In The Box (JACK): Q2 EPS of $0.80 misses by $0.05.
Revenue of $209.77M (-21.1% Y/Y) misses by $1.58M.
Shares -2.6%.

My Trades Today

Sold WDC

Sold 1/3 M

Comments

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