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Nov 16, 2018 - Market Blog

11/16/2018

 

Chip Dip!

 

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U.S. Equities:

 

Prospects are looking fairly grim as U.S. Equity futures (/ES) are signaling yet another downbeat open to close out a painful trading week.  Chipmaker NVIDIA (NVDA) will likely become the scapegoat in today’s session as the company is taking on heavy losses after a disappointing earnings result.  The Nasdaq Composite (COMP) may be off by nearly 1% at the open as trader’s re-assess exposure in the troubled space as of late.  The S&P 500 (SPX) briefly saw a four-day skid snapped yesterday after ending at 2730 which may simply translate to a pause in the weakening trend.  Small Caps (RUT) are seeing a similar pattern with the key 1500 level in jeopardy of being breeched.   

        

Credit Markets:

 

Treasury yields are ticking slightly lower this morning ahead of various manufacturing data. The 10 year is now trading near 3.090% which marks the lowest in the month of November. FOMC Chair Powell back-peddled somewhat from his hawkish rhetoric yesterday in an address that prompted some to believe that the aggressive rate hike trajectory may slow somewhat depending on transpiring economic conditions.   

 

Energy:

 

U.S. Crude Futures (/CL) are trending nearly 2% higher this morning as rumors swirl of a potential 1.4 million barrel cut in daily global production by next year which may be decided during the next OPEC meeting scheduled for Dec 6th.  Domestic production numbers over the last week saw yet another record with a 10.3 million barrel surplus posted. Oil will still likely suffer its 6th straight weekly decline with nearly a 4% contraction after reaching its low point for 2018. 

 

Pre-Market:

 

Industrial production will be closely examined today with a 3rd straight month of positive readings expected considering today’s 0.2% projection. Treasury International Capital will become the week’s last data point with a 46.2B forecast in a follow-up from last month’s high water mark for the year at nearly 132B.  Any new developments on either the Brexit front or Chinese trade negotiations may help to fend off the recent negative sentiment.  Volatility surprisingly held firm yesterday despite the rally with the VIX stabilizing near $20.50. 

 

Major Economic Reports:

 

8:15 am CT – Industrial Production

9:00 am CT – Quarterly Services Report (Advanced)

10:00 am CT- Kansas City Fed Manufacturing Index

12:00 pm CT – Baker-Hughes Rig Count

3:00pm CT –  Treasury International Capital

 

Notable Earnings:   

 

Friday – 11/16:

 

Before MarketVIAB

After Market:    N/A

 

Monday – 11/19:

Before Market: JD

After Market:   AINTU, JACK, LB, URBN

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

**Check out the NEW TD Ameritrade Network on the TOS platform or at https://tdameritradenetwork.com for financial news**

Nov 15, 2018 - Market Blog

11/15/2018

 

Is the U.K. O.K?

 

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U.S. Equities:

 

Equities are playing out a familiar tune again this morning as an earlier overnight gain has since given way to yet another modest loss ahead of the opening bell.  Fresh concerns over a Brexit debacle have rattled financial markets as key ministers resign just as hard deadlines approach in a show of contempt. An unorderly exit could potentially fracture the fragile economic conditions in the region and have wider implications globally. Wednesday saw the Dow Jones ($DJI) dip by more than 200 points to end at 25,080 which cemented a 4th straight decline. The S&P 500 (SPX) surrendered over 20 points to finish at 2,701 in another lackluster performance. Tech lost nearly 1% during the same period as the Nasdaq Composite faltered to 7,136 off more indecision around Apple’s (AAPL) future. Volatility may see its 6th straight session of increase with a $21.75 reading in the CBOE Volatility Index (VIX) indicating more caution around risk appetite. 

 

        

Credit Markets:

 

The U.S. 10 year treasury yield has slipped to 3.10% amid a 1% plunge in the sterling as contention around any plausible Brexit deal remains elusive. Fed speak will become an important piece of the puzzle today with both Chair Powell among others set to speak which have recently touted success in their overlying policy as they telegraph their next planned hike for December.  

 

Energy:

 

More concerns of oversupply in crude have energy prices leveling off near the $56.5 level in (/CL) after finally securing a first winning session after 12 straight declines. Natural gas jumped to a four year high yesterday as cold weather sweeping across the country exacerbates supply concerns. Natural gas futures hit all-time daily high volume with more than 1.2 million contracts traded in a single session. Both energy sources are slated to share weekly inventory numbers just after the open which may spur more activity. 

 

Pre-Market:

 

Retail sales were just reported at 0.8% which was its highest level since June after posting two straight months of declines.  Automobile purchases and energy were two bright spots ahead of an ever-important holiday shopping season. European markets are sinking by less than 1% collectively as investors attempt to process the implications of the ongoing Brexit battle. Asia is seeing slightly better results overall as perceived progress around trade negotiations with Washington offer a ray of hope to the recent dismal performance. 

 

Major Economic Reports:

 

7:30 am CT – Jobless Claims

7:30 am CT – Philadelphia Fed Business Outlook Survey

7:30 am CT – Retail Sales

7:30 am CT – Empire State Mfg.Survey

7:30 am CT – Import and Export Prices

9:00 am CT –  Business Inventories

9:30 am CT –  EIA Natural Gas Report

10:00 am CT– EIA Petroleum Stat

10:30 am CT– FOMC Chair Powell speaks

12:00 pm CT –  FOMC Member Bostic speaks

2:00 pm CT – FOMC Member Kashkari speaks

3:30 pm CT –  Fed Balance Sheet/Money Supply

 

Notable Earnings:   

      

Thursday – 11/15:

 

Before Market: CSIQ, DDS, JCP, WMT

After Market:    AMAT, JWN, NVDA

 

Friday – 11/16:

 

Before MarketVIAB

After Market:    N/A

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Nov 14, 2018 - Market Blog

11/14/2018

 

Oil Rip Current

 

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U.S. Equities

U.S. equities rose yesterday morning, but the rip current of the selloff in crude oil eventually pulled stocks lower.  U.S. Crude oil (/CL) fell 7.1% to $55.69 per barrel, which had a negative effect on the overall equity market.   Energy giants, Exxon Mobil (XOM) and Chevron (CVX) lost 2.3% and 1.7%, respectively.  Some technology stocks were able to buck the trend and some were not.  Nvidia (NVDA) climbed 5.2% to $199.31, while Advanced Micro Devices (AMD) rose 3% to $19.61.  The positive move in the chip makers helped them recoup some of their recent losses.  On the flipside, Apple (AAPL) added to Monday’s 5% drop after two suppliers cut their earnings outlooks.  The technology giant fell 1% to close at $192.23.   On the day, the Nasdaq Composite was up slightly to 7200.87, the Dow Jones Industrials ($DJI) fell 0.4% to 25286.49, and the S&P 500 (SPX) lost 0.1% to 2722.18.

        

Credit Markets 

U.S. treasuries rose yesterday, as the steep drop in oil had investors moving into the safety of government bonds.  The yield on the 10yr. Treasury note fell to 3.145% from 3.189% on Friday.  Oil’s recent fall has led investors to scale back their expectations for inflation. 

 

Energy

U.S. Crude oil (/CL) fell for a twelfth straight session, as fears of oversupply have wreaked havoc on the energy market.  Crude oil ended the day down 7.1% to settle at $55.69.  This marked its largest one day drop since September 2015, and a 27% pullback from the October 3rd high of $76.41.

 

Pre-Market

The latest Consumer Price Index (CPI), was released at 7:30CT. The report showed that consumer prices rose a moderate 0.3% in October, which was in-line with estimates.  As of this writing, U.S. Crude oil futures (/CL) are 1.5% higher near $56.50 per barrel, Gold (/GC) is unchanged near $1201 per troy ounce, and S&P 500 futures (/ES) are 0.5% higher, trading near 2742.

 

 

Major Economic Reports:

 

6:00 am CT –  MBA Mortgage Applications

7:30 am CT –  CPI

9:30 am CT –  Atlanta Fed Business Inflation Expectations

4:00 pm CT --  Fed Chairman Powell speaks

 

Notable Earnings:   

      

Wednesday – 11/14:

 

Before Market: GOOS, M, SODA, WB, XNET

After Market:    CSCO, NTAP, NTES, VIPS, WPM

 

Thursday – 11/15:

 

Before Market: CSIQ, DDS, JCP, WMT

After Market:    AMAT, JWN, NVDA

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

Nov 13, 2018 - Market Blog

11/13/2018

 

*Let's Make a Deal!  … Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days - email support@tradewise.com or call 877.733.6786*

 

**Check out the NEW TD Ameritrade Network on the TOS platform or at https://tdameritradenetwork.com for financial news**

 

Equities are trying to dust off from yet another route yesterday with futures (/ES) now improving by double digitsl thanks in part to a strong number posted by Home Depot (HD).  Yesterday saw nearly a 2% crater across all major benchmarks as the CBOE Volatility Index (VIX) pressed back above $20 after a 3rd straight daily increase with apprehension mounting. Further evidence of Apple (AAPL) losing market share were revealed through their supply chain which opened the door to greater implications. The Dow Jones ($DJI) took a direct 600 point hit to end at 25,387 with only a handful of defensive natured consumer staples components spared with a modest improvement. The S&P 500 (SPX) concurrently retreated to 2726 with most of its 11 sectors slipping uniformly into the red. Surprisingly, telecomm and utilities showed some resiliency with buyers stepping in.

 

Yields on the 10 year treasury appear stable near 3.158% after reports of concrete progress on a possible U.S./China trade resolution increases risk appetite.  U.S. Treasury Secretary Mnuchin apparently spoke with Vice Premier Liu He recently to pave the way for President Trump and XI trade meeting slated for November 30th.  Inversely,  Japanese markets backed off after Trump’s latest nationalist trade agenda shifted towards a potential revamp between the two countries.  Europe was also not spared with more threats of a potential automobile tariff drawing valid concerns.  On a positive note, Brexit negotiations may be coming to a close by week’s end with a tentative deal finally within reach.  All eyes will be on Italy today as a revised budget deadline is due by the end of the day with tensions mounting against the European Union over troubling debt levels not being addressed. 

 

Oil prices (/CL) continue to waver another 2.5% to $58.50 after Trump called for cheaper energy ahead of a potential Saudi plea with OPEC to reduce daily production by nearly 1 million barrels into 2019.  This latest development now marks an 11th straight session of declines which equates to a new record.  Gold Futures (/GC) have quietly climbed back above $1200 an ounce this morning after 7 straight sessions of pain with the ultra-strong dollar taking its toll.  Some Fed speak will transpire today as markets gear up for the next consequential meeting next month with a quarter-point hike appearing more likely than not at this stage. 

 

Stock Stories:

 

Best Buy (BBY) –Best Sell? –The electronics retailer is coming under renewed pressure this morning after notable downgrades overnight have drove shares lower to fresh 2018 lows.  This news comes at a critical juncture as companies gear up for the ever-important holiday shopping season. BBY shares are down nearly 2% early in the session with an earnings preview scheduled for next week. 

 

 Major Economic Reports:

 

5:00 am CT –  NFIB Small Business Optimism Index

7:55 am CT –  Redbook

9:00 am CT –  FOMC Member Kashkari speaks

10:30 am CT– 3 Month and 6 Month Bill Auction

1:00 pm CT –  Treasury Budget

1:20 pm CT –  FOMC Member Harker speaks

 

Notable Earnings:   

 

Tuesday –11/13:

 

Before Market:   CRON, HD, TSN, VOD

 

After Market:  TLRY

 

 Wednesday – 11/14:

 

Before Market:  GOOS, M, SODA, WB, XNET

 

After Market: CSCO, NTAP, NTES, VIPS, WPM

 

 *Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Nov 12, 2018 - The Week Ahead

TradeWise – The Week Ahead

November 12,  2018

 

U.S. equities ended the week on a sour note, as global growth concerns weighed on the market. Trade sensitive stocks such as Caterpillar (CAT)  and Deere (DE) fell after President Trump’s trade advisor Peter Navarro  indirectly accused Chinese President Xi Jinping of not living up to trade deals.  After entering a bear market, U.S. Crude oil (/CL) dropped 0.8% to settle at $60.19 per barrel, marking its 10th consecutive losing session.  The commodity’s longest such streak since 1984.  The yield on the U.S. 10yr. Treasury Note (TNX) fell to 3.189% from 3.238% on Thursday.  The General Electric (GE) downside saga continued, as the former blue chip stock fell 5.7% to $8.58 on Friday after JP Morgan lowered its price target to $6 per share.  On Friday, the S&P 500 (SPX) lost 0.9% to 2781.01, the Nasdaq Composite (COMP) dropped 1.7% to7406.90, and the Dow Jones Industrials ($DJI) shed 0.8% to 25989.30.  Even with Friday’s losses, all three ended up positive on the week.  The SPX added 2.1%, the COMP rose 0.7% and the Dow Industrials gained 2.8%.    

 

Over the weekend, remarks from OPEC officials indicate that they are likely to formally cut output at their next meeting in December.  Concerns of no deal being achieved on Brexit are flaring back up, and Prime Minister May is feeling pressure on all sides.  Reports are surfacing that satellite images of  North Korea, indicate that the country’s  nuclear threat has worsened since the Trump-Kim summit.  This week’s economic calendar will be weighted towards the end of the week with CPI being released on Wednesday and  Jobless Claims, Retail Sales, and Import/Export Prices coming out on Thursday.  Earnings continue to roll on with Home Depot (HD)  results coming out on Tuesday morning and Walmart (WMT) on Thursday morning.  As of this writing, U.S. crude oil futures (/CL) are 1% higher near $60.85 per barrel and S&P 500 futures (/ES) are slightly lower near 2775.

 

Major Earnings for the Upcoming Week:

 

Monday:

A.M– N/A

P.M.–  YY, RIOT, HUYA

 

Tuesday:

A.M.–  CRON, HD, TSN, VOD

P.M.– TLRY

 

Wednesday:

A.M. – GOOS, M, SODA, WB, XNET

P.M. –CSCO, NTAP, NTES, VIPS, WPM

 

Thursday:

A.M. – CSIQ, DDS, JCP, WMT

P.M. – AMAT, JWN, NVDA

 

Friday:

A.M.–  VIAB

P.M. –  N/A

 

Economic Releases (11/12 – 11/16):

 

Monday:

U.S. HOLIDAY-VETERANS DAY

 

Tuesday:

5:00 am CT –  NFIB Small Business Optimism Index

7:55 am CT –  Redbook

10:30 am CT– 3 Month and 6 Month Bill Auction

1:00 pm CT –  Treasury Budget

 

Wednesday:

6:00 am CT –  MBA Mortgage Applications

7:30 am CT –  CPI

9:30 am CT –  Atlanta Fed Business Inflation Expectations

 

Thursday:

7:30 am CT – Jobless Claims + Philadelphia Fed Business Outlook Survey+ Retail Sales+ Empire State Mfg.Survey+ Import and Export Prices

9:00 am CT –  Business Inventories

9:30 am CT –  EIA Natural Gas Report

10:00 am CT– EIA Petroleum Stat

3:30 pm CT –  Fed Balance Sheet/Money Supply

 

Friday:

8:15 am CT – Industrial Production

9:00 am CT – Quarterly Services Report (Advanced)

10:00 am CT- Kansas City Fed Manufacturing Index

3:00pm CT –  Treasury International Capital

 

 

*Follow us on Twitter @TradeWise

 

*BOLD above indicates important and potential market-moving news and information

                                                   

TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog and Weekend Update by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Showing Week of Nov 05, 2018

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Nov 09, 2018 - Market Blog

11/9/2018

 

Election Hangover?

 

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U.S. Equities

Energy shares weighed on U.S. stocks yesterday, as Crude oil (/CL) entered a bear market.  The S&P 500 Energy sector (XLE) lost 2.2%, as U.S. Crude oil slumped over 1.5% approaching $60 a barrel.  The S&P 500 (SPX) retreated yesterday, after rising in six of the prior seven sessions, and posting the largest post-election increase since 1982.  SPX fell almost 7% in the month of October, its sharpest decline in more than seven years.  Investors have been looking past mostly positive earnings growth, and focusing on cuts in growth guidance looking forward.  An example of this was Wynn Resorts (WYNN) dropping 13% to $99.02 yesterday after the company was doubtful about its Macau business in the fourth quarter.  On the day, the Nasdaq Composite (COMP) lost 0.5% to 7530.88, the Dow Jones Industrials ($DJI) rose slightly to 26191.22, and the S&P 500 (SPX) dropped 0.3% to 2806.83.

        

Credit Markets 

The Federal Reserve meeting on interest rates took place yesterday, with the central bank deciding to keep short term interest rates steady.  The governing body had a mostly upbeat assessment of the U.S. economy, and suggested that there will be another rate increase in December.  The yield on the 10yr. Note (TNX) rose to 3.232% as compared to 3.215% on Wednesday, its highest level since May 2011.

 

Energy

U.S. Crude oil (/CL) fell for a ninth straight session, breaking the commodity’s longest bull market since 2008.  Some feel the selloff is being fueled by the U.S. decision to soften their oil sanctions on Iran.  December futures lost 1.6% yesterday to settle at $60.67 per barrel. 

 

Pre-Market

The latest Producer Price Index (PPI), a measure of the prices businesses receive for their goods and services, was released at 7:30CT. The report showed that business prices rose in October at the fastest pace in nearly six years.  Prices rose 0.6% in October, and economists were expecting only a 0.3% rise.  As of this writing, U.S. Crude oil futures (/CL) are 1.5% lower near $59.71 per barrel, Gold (/GC) is 1.0% lower near $1212 per troy ounce, and S&P 500 futures (/ES) are 0.5% lower, trading near 2794.

 

Stock Stories:

Disney (DIS) – The Mouse beats the house --  The entertainment juggernaut reported earnings of $1.48 per share which was well ahead of the consensus estimate of $1.35 per share.  Revenue figures also beat, with the company reporting revenue of $14.3 billion versus estimates of $13.76 billion.  The shares are trading 1.5% higher, near $118 in the pre-market.

 

Major Economic Reports:

 

7:30 am CT –  Producer Price Index (PPI)

7:30 am CT –  FOMC Member Williams Speaks

7:50 am CT –  FOMC Member  Harker Speaks

8:00 am CT –  FOMC Member  Quarles Speaks

9:00 am CT –  Consumer Sentiment  (Prelim.)  

9:00 am CT –  Wholesale Trade

12:00 pm CT– Baker-Hughes Rig Count

 

Notable Earnings:   

      

Friday – 11/9:

 

Before Market: PBPB, STWD

After Market:    GNC, ATHN

 

Monday– 11/12:

 

Before Market: N/A

After Market:    HUYA, RIOT, YY

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com.Your suggestions are important to us in providing the highest quality service.

Nov 08, 2018 - Market Blog

11/8/2018

 

What happens in October, stays in October… 

 

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U.S. Equities

U.S. equity markets surged higher yesterday, following midterm election results that eased investors’ worries about radical changes in economic policy.  Democrats  won a majority in the House of Representatives, and Republicans retained control of the Senate, keeping sweeping changes of the table in areas such as healthcare.  All eleven S&P 500 sectors were positive, putting the benchmark S&P 500 (SPX) within 4% of its record high.  Healthcare led indices higher, along with a strong rally in the technology and internet sectors which have recently been battered.  Both the Dow Jones Industrials ($DJX) and the S&P 500 (SPX) have both been higher in six out of the past 7 sessions, and finished at their highest level since October 9.  Even with the recent drop in crude oil, energy stocks in the S&P 500 managed to rise 1.6%, after Colorado voters rejected a measure to curb drilling in the U.S.’s seventh largest oil producing state.  On the day,  the Dow Jones Industrials ($DJI) rose 2.1% to 26180.30, the Nasdaq Composite (COMP) gained 2.6% to 7570.75, and the S&P 500 (SPX) added 2.1% to 2813.89.

        

Credit Markets 

U.S. Treasuries ended Wednesday,  near unchanged, after having large swings following the mid-term elections and the 30yr. bond auction.  The yield on the 10yr. Note (TNX) settled at  3.215% as compared to 3.214% on Tuesday.

 

Energy

U.S. Crude oil (/CL) fell for and eight straight session, making it the commodity’s longest losing streak since July 2014.   A report showed that U.S. inventories climbed for a seventh straight week and production attained a new record high.  December futures closed 0.9% lower at $61.67 per barrel. 

 

Pre-Market

U.S. Jobless claims were released at 7:30CT. The Labor Department reported that unemployment claims came in steady at 214,000, versus estimates for a 1,000 decline.  As of this writing, U.S. Crude oil futures (/CL) are unchanged near $61.60 per barrel, Gold (/GC) is 0.4% lower near $1222 per troy ounce, and S&P 500 futures (/ES) are 0.4% lower, trading near 2804.

 

Stock Stories:

Wynn Resorts (WYNN) – Snake eyes!   The casino operator reported earnings of $1.68 on revenue of $1.71 billion.  Analysts were looking for earnings of $1.71 and revenue of $1.67 billion.  The shares are trading over 14% lower, near $97 in the pre-market.

 

Major Economic Reports:

 

7:30 am CT – Weekly Jobless Claims

9:30 am CT – Natural Gas Inventories

1:00 pm CT – FOMC Meeting Announcement/ Fed Funds Rate

3:30 pm CT – Fed Balance Sheet/Money Supply

 

Notable Earnings:   

     

Thursday – 11/8:

 

Before Market: AZN, CAH, CROS, DHI, DISCA, HAIN, HRI, LNG, PRTY

After Market:    AL, AMC, ATVI, DBX, CTL,DIS, HTZ, RDFN, YELP

 

Friday – 11/9:

 

Before Market: PBPB, STWD

After Market:    GNC, ATHN

 

 

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com.Your suggestions are important to us in providing the highest quality service.

Nov 07, 2018 - Market Blog

11/7/2018

 

*Split Vote! … Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days - email support@tradewise.com or call 877.733.6786*

 

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Traders are reacting positively to yesterday’s split election results as S&P 500 futures (/ES) are indicating hefty gains ahead of the opening bell. Many analysts believe that President Trump’s pro-business stance will continue unhindered with a democratic house of representatives likely reigning in any renegade trade tactics. Yesterday saw a buying frenzy mount with the session progressing as projections began to materialize.  The S&P 500 closed at highs with a 17 point jump as every sector joined in with materials vaulting 1.5%. The Dow Jones ($DJI) also tacked on an impressive 173 points to end at 25,635 with over 75% of components positively contributing. Techs finally broke a two-day skid to grind out a gain of its own at 7375 as relief over the potential breakup of several leaders waned with the mixed election results. Volatility plummeted by nearly 13% over the course of the day as October’s selloff quickly becomes a distant memory as talk of the next Santa Clause rally will likely begin to chime. 

 

European Markets are enjoying gains in excess of 1% collectively with a vote of confidence secured by the Italian government as they grind out an ongoing budgetary impasse with the European Union. Asia is seeing a more muted response with mixed results indicated ahead of an important Chinese trade figure later this week. The dollar has seen negative movement overnight as the reality of Trump ability to enforce more protectionist policies comes into question. Treasury yields have fallen as a result of several hard-fought campaigns come to an end nearing 3.18% on the 10 year. Attention will now shift to the Fed with day one of the open market committee commencing today. 

 

Mortgage Applications dropped to a 4 year low this morning as 8 year high interest rates unsurprisingly curbed appetites of potential homebuyers.  In total, volume is a stunning 16% lower than this time a year ago as the lack of affordability cripples many popular markets.  Oil Inventories will also be shared after the opening bell with a 2.0 million build expected over the prior week. Talk of potential production caps into next year from both Russia and Saudi Arabia has crude (/CL) trading nearly 1% higher despite failed drilling referendums likely driving down demand over the foreseeable future. Consumer credit will be also shared at the close with a $15.7 Billion upturn expected to potentially lock in a 3rd straight month of increase. 

 

Stock Stories:

 

Target (TGT) – Moving Target– Shares of the popular retailer are pushing higher this morning by nearly 2% after receiving more analyst praise over their evolving business plan. Curbside pick-up options and their expanding digital offering (including free shipping) have specifically been cited as positives with shares pushing back in range of its 52 week high reached in September.   

 

Major Economic Reports:

All Day – FOMC Meeting Begins   

6:00 am CT – MBA Mortgage Applications

9:30 am CT – Oil Inventories

12:00 pm CT – 30 Year Bond Auction

2:00 pm CT – Consumer Credit

 

Notable Earnings:   

 

Wednesday – 11/7:

Before Market:  COTY, DF, DISH, GRPN, HUM, KORS, ODP, ROK, SO, VSI, WWW

After Market:   FOSL, KGC, KRO, NUS, MRO,PRU,  QCOM, ROKU,SQ, TIVO, TRIP, TTWO, WYNN

 

Thursday –11/8:

Before Market:   AZN, CAH, CROS, DHI, DISCA, HAIN, HRI, LNG, PRTY

After Market:   AL, AMC, ATVI, DBX, CTL,DIS, HTZ, RDFN, YELP   

 

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Nov 06, 2018 - Market Blog

11/6/2018

 

*The Final Countdown … Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days - email support@tradewise.com or call 877.733.6786*

 

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Equities (/ES) are drifting slightly lower ahead of the opening bell as jitters await the results from today’s pivotal ballot count.  Much will be at stake with the next two years agenda being shaped by today’s vote.  It is widely anticipated that the Democrats will likely take control of the House while Republicans maintain the Senate advantage with any variance likely sparking some unwelcomed volatility which currently rests just over $20 in the CBOE Volatility Index (VIX).  Monday saw the Dow ($DJI) rise nearly 200 points to end at 25,461 as investors scooped up discounted shares still well off October highs. The S&P 500 (SPX) tacked on 15 points or nearly 0.6% during the same period to finish at 2,738 with consumer staples and healthcare leading the way. Tech stocks failed to keep pace with a 28 point drop realized in the Nasdaq Composite (COMP) to end at 7,328. Apple (AAPL) soured sentiment after breaching the $200 level for the first time since August off rumors of production slowdowns by major suppliers.

 

The  yield on the benchmark 10 year Treasury is holding extremely quiet near 3.195% ahead of today’s auctions with some eventual movement anticipated as results are shared later tonight. Gold Futures (/GC) are seeing some lukewarm interest with the precious metal now up over $3 at $1235 an ounce as a possible safety play with the recent stalling of the dollar also helping. Crude (/CL) remains 15% off highs near $63 following the announcement of an 180 day exemption granted for Iran’s biggest customers catching some traders off guard due to the softening impact. Today’s economic data will remain seasonably light with the only exception being a glimpse into employment conditions. JOLTS will be looking for a pace of 7.09 million job openings which would translate into the 2nd highest levels of the year.

 

Stock Stories:

 

CVS Health Corporation (CVS) –Convenient! –The  drug-store chain just reported third quarter revenue and earnings that outpaced analysts’ overall consensus.  Revenue reached $47.3 billion which was nearly $1 billion more than last year’s comparison..  Same store sales saw an impressive 6.7% boost  as pharmacy specific items saw even better results which have helped to drive shares nearly 3% higher pre-market.  For the year, CVS shares are only up fractionally by 1.6% after a significant October reversal with an expectation to close the pending Aetna deal by the end of the month. 

 

 Major Economic Reports:

 

All Day – Mid-Term Congressional Elections

7:55 am CT – Redbook

9:00 am CT – JOLTS

10:30 am CT –4 week /8 week/52 week Bill Auction

12:00 pm CT – 10 Year Note Auction

 

Notable Earnings:   

 

Tuesday –11/6:

Before Market:   ES, APD, BCC, CVS, GOGO, LLY,RL, TRI

After Market:  CWH, DVN, ETSY, FTR, LC, MTCH,PLNT,PRI, PZZA, TWLO,WEN

 

 Wednesday – 11/7:

Before Market:  COTY, DF, DISH, GRPN, HUM, KORS, ODP, ROK, SO, VSI, WWW

After Market: FOSL, KGC, KRO, NUS, MRO,PRU, QCOM, ROKU,SQ, TIVO, TRIP, TTWO, WYNN   

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

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Nov 05, 2018 - The Week Ahead

TradeWise – The Week Ahead

November 5, 2018

 

U.S. equities (/ES) are relatively quiet ahead of a power-packed week which will likely lead to more fireworks over the next several sessions.  Asia started off the global marketplace with more pain as Japan, China, and Hong Kong all trended lower with trade in focus. Europe is faring slightly better with most counterparts pushing ahead albeit slightly thanks to some encouraging developments in the ongoing Brexit saga. Energy prices will be closely watched today as Iranian sanctions have been ratcheted up by the administration. Crude (/CL) is up fractionally near $63.50 in an attempt to climb higher for only the first time in the last 5 sessions as global demand comes into question. TD Ameritrade will be sharing its monthly IMX Index results at 11:30 which details insight into retail trader sentiment over the previous month. 

 

Mid-term elections will be the first major hurdle to clear tomorrow with implications expanding as far as Trump’s overall agenda with many pivotal races. Investors will also brace for Wednesday and Thursday as the Federal Reserve will commence for a likely dress rehearsal with another raise not expected until next Month. Investors are keenly aware of what hawkish language can do to the fragile bond and equity markets as demonstrated last month. The committee will attempt to walk a fine line between the interpretation of hot economic data while appeasing an outspoken administration  placing the blame of any slowing conditions directly on their shoulders. Various employment trends will be viewed through JOLTS data tomorrow as well as weekly jobless claims coming just before the announcement.   Manufacturing data will be highlighted late in the week with PPI expected to reach 0.3% for the first time since July.  

 

Volatility finally took some reprieve on Friday to see the CBOE Volatility Index (VIX) end below the $20 handle for the first time since October 22nd.  The Dow Jones ($DJI) has now experienced triple digit swings in the past 10 sessions to fight back above the 25K level ending at 25,270 on Friday. The S&P 500 (SPX) finished Friday at 2723 to slip into the negative for the first time in three sessions after a fairly strong campaign off October lows. Small caps (RUT) will be working on a five session winning streak just below the 1550 level in an attempt to shake off October’s painful rout from record levels. Earnings will continue to be circulated at a frantic pace all week with such names as: CVS, QUALCOMM (QCOM), Square (SQ), and Disney (DIS) all lined up to report with some continued volatility expected. 

  

Major Earnings for the Upcoming Week:

 

Monday:

A.M–  DO, L, RACE,SEAS, SYY

P.M.– BKNG, CAR,CBT,MAR, MOS,MYL,MTW, OXY, THC

 

Tuesday:

A.M.– AES, APD, BCC, CVS, GOGO, LLY,RL, TRI

P.M.– CWH, DVN, ETSY, FTR, LC, MTCH,PLNT,PRI, PZZA, TWLO,WEN

 

Wednesday:

A.M. – COTY, DF, DISH, GRPN, HUM, KORS, ODP, ROK, SO, VSI, WWW

P.M. –FOSL, KGC, KRO, NUS, MRO,PRU,  QCOM, ROKU,SQ, TIVO, TRIP, TTWO, WYNN

 

Thursday:

A.M. –AZN, CAH, CROS, DHI, DISCA, HAIN, HRI, LNG, PRTY

P.M. – AL, AMC, ATVI, DBX, CTL,DIS, HTZ, RDFN, YELP

 

Friday:

A.M.–  PBPB, STWD

P.M. –  GNC, ATHN

 

Economic Releases (11/5– 11/9):

 

Monday:

8:45 am CT – PMI Services Index

9:00 am CT – ISM  Non-Manufacturing PMI

10:30 am CT – 3 mo. /6 mo. Bill Auction

11:30 am CT – TD Ameritrade IMX Index

6:00 pm CT – FOMC Member Kaplan Speaks

 

Tuesday:

All Day – Mid-Term Congressional Elections

7:55 am CT – Redbook

9:00 am CT – JOLTS

10:30 am CT –4 week /8 week/52 week Bill Auction

12:00 pm CT – 10 Year Note Auction

 

Wednesday:

All Day – FOMC Meeting Begins   

6:00 am CT – MBA Mortgage Applications

9:30 am CT – Oil Inventories

12:00 pm CT – 30 Year Bond Auction

2:00 pm CT – Consumer Credit

 

Thursday:

7:30 am CT – Weekly Jobless Claims

9:30 am CT – Natural Gas Inventories

1:00 pm CT – FOMC Meeting Announcement/ Fed Funds Rate

3:30 pm CT – Fed Balance Sheet/Money Supply

 

Friday:

7:30 am CT – Producer Price Index (PPI)

7:30 am CT – FOMC Member Williams Speaks

7:50 am CT – FOMC Member  Harker Speaks

8:00 am CT – FOMC Member  Quarles Speaks

9:00 am CT – Consumer Sentiment  (Prelim.)  

9:00 am CT – Wholesale Trade

12:00 pm CT – Baker-Hughes Rig Count

 

*Follow us on Twitter @TradeWise

 

*BOLD above indicates important and potential market-moving news and information

                                                   

TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog and Weekend Update by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.