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Apr 26, 2018 - Market Blog

4/26/2018

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Stocks had a roller coaster day on Wednesday as they gyrated from deep losses to finishing the session slightly higher. The Dow Industrials ($DJI) snapped a 5-day losing streak as Boeing (BA) helped push the Blue Chips up by the end of the day. Rising interest rates initially hurt equities but the sentiment was reversed into Wednesday’s close. The 10-Year Yield settled above 3% for the first time in over four years and the trend remains to the upside for rates. This morning, U.S. stock futures (/ES) are higher ahead of Wall Street open as earnings continue to beat estimates at about an 80% clip for the S&P 500. Earnings will be in focus again today as the positive corporate results have offset the higher interest rate environment. Oil prices (/CL) are up modestly this morning and continue to trade in a tight range near $68 a barrel. Crude inventories grew modestly this week but geopolitical headwinds have kept a bid in the energy sector.

 

Treasuries are moderately higher ahead of the Wall Street open and are reversing their recent slide. The benchmark 10-year yield settled at 3.02% yesterday but is just below the key psychological level this morning. The equity gyrations this week has option volatility in a tight range as offsetting news has investors on edge. The closely-watched CBOE Volatility Index (VIX) rallied modestly yesterday but is falling slightly in the premarket. Overseas markets are mostly higher following the lead of the U.S. equity market but China did fall by 1.35% overnight. The domestic economic calendar is heavy today and includes Weekly Jobless Claims, Durable Goods and Trade data. Along with the newsworthy economic events, earnings will continue to guide markets.    

 

Stock Stories:

Facebook (FB) – Earnings – The social media giant posted another positive earnings report this morning as EPS and revenue beat expectations. Facebook reported Q1 daily active users were 1.45B on average for March 2018, an increase of 13% year-over-year. Monthly active users were 2.2B as of March 31, 2018, an increase of 13% year-over-year. The negative tone surrounding the company may be lifted today as the shares are up sharply ahead of the Wall Street open.

 

Major Economic Reports:

7:30 am CT – Weekly Jobless Claims

7:30 am CT – International Trade

7:30 am CT – Durable Goods Orders

7:30 am CT – Wholesale Inventories

9:30 am CT – Natural Gas Inventories

10:00 am CT – Kansas City Fed Mfg. Index

12:00 pm CT – 7-Year Note Auction

 

Notable Earnings:   

Thursday – 4/26:   

Before Market:   ABBV, ALXN, ALLY, MO, AAL, AEP, BAX, BLMN, BWA, BMY, BC, CME, COP, DHI, DPZ, DNKN, FCAU, GM, HP, HSY, HLT, ITW, IP, KBR, LEA, MGM, NEM, NOK, PH, PEP, PX, RTN, LUV, TWX, UNP, UPS, XEL

After Market:  AMZN, ATHN, BYD, CY, DFS, EXPE, FSLR, HIG, INTC, KLAC, MAT, MSFT, NOV, NUS, PFG, SWN, SBUX, SYK, X, VRTX, WDC

 

Friday – 4/27:

Before Market:  CHTR, CVX, CL, D, XOM, LYB, MCO, PSX, COL, SPG, TEN, WY

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.comor 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.

Apr 25, 2018 - Market Blog

4/25/2018

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The Dow Industrials ($DJI) tanked more than $420 on Tuesday after Caterpillar (CAT) and 3M (MMM) saw a post-earnings sell-off. Early gains for stocks quickly sold off and gained downside momentum late into the session. The FANG stocks all dropped more than 3.5% amid the growing concerns of rising costs and lowered expectations for FY18. Rising rates also caused some headwinds for equities as the 10-year yield briefly hit above the key psychological level of 3% on Tuesday. This morning, U.S. stock futures (/ES) are lower again ahead of Wall Street open as yields continue to rally. Earnings will be in focus with reports due from blue chips Boeing (BA), Twitter (TWTR) and Ebay (EBAY) among others. Oil prices (/CL) are up modestly and but continue to show strength despite the recent rally in the Dollar ($DXY). The API showed U.S. crude inventories grew modestly after the close yesterday and focus will be on the EIA data this morning.

 

Treasuries are sharply lower ahead of the Wall Street open and are continuing their recent slide. The benchmark 10-year yield is near 3% this morning and continue to create headwinds for the equity market. The equity pull-back yesterday has option volatility catching a bid. The closely-watched CBOE Volatility Index (VIX) rallied sharply yesterday and is up near $19 in the premarket.  Overseas markets are sharply lower led by a 1.5% slide in the German DAX as global equities follow the lead of the U.S.  The domestic economic calendar is light today and includes only oil inventories and a 5-Year Note auction. Mortgage applications showed weakness this morning as rising rates are putting a damper on refinancing.    

 

Stock Stories:

Twitter (TWTR) – Earnings – The social media company posted another positive earnings report this morning as EPS and revenue beat expectations. Twitter reports average MAUs were 336 million for Q1, an increase of 3% year-over-year and an increase of 6 million compared to 330 million in the previous quarter. The shares are up sharply ahead of the Wall Street open.

 

Major Economic Reports:

6:00 am CT – MBA Mortgage Applications

9:30 am CT – Oil Inventories

12:00 pm CT – 5-Year Note Auction

 

Notable Earnings:   

Wednesday – 4/25:   

Before Market:   ANTH, BA, BSX, CMCSA, DPS, ETR, GD, GT, HES, IR, NSC, OC, ROK, SIRI, TMO,TWTR, USG, VIAB

After Market:  AMD, AFL, T, SAM, CMG, CTXS, EBAY, FB, F, GG, LVS, PYPL, QCOM, V, XLNX

 

Thursday – 4/26:

Before Market:  ABBV, ALXN, ALLY, MO, AAL, AEP, BAX, BLMN, BWA, BMY, BC, CME, COP, DHI, DPZ, DNKN, FCAU, GM, HP, HSY, HLT, ITW, IP, KBR, LEA, MGM, NEM, NOK, PH, PEP, PX, RTN, LUV, TWX, UNP, UPS, XEL

After Market: AMZN, ATHN, BYD, CY, DFS, EXPE, FSLR, HIG, INTC, KLAC, MAT, MSFT, NOV, NUS, PFG, SWN, SBUX, SYK, X, VRTX, WDC

 

*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.comor 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.

Apr 24, 2018 - Market Blog

4/24/2018

*Earnings Due!  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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The Dow Industrials (DIA) finished in the red slightly on Monday and is on a 4-session losing streak. Stocks bounced off of mid-day lows but still finished down slightly to start the week. Rising rates put a lid on equities but the 10-year yield finished the day off of its 4-year high of 2.99%. This morning, U.S. stock futures (/ES) are sharply higher ahead of Wall Street open as yields ease their recent rally. Earnings will be in focus with reports due from blue chips 3M (MMM), Caterpillar (CAT) and Coca-Cola (KO) among others. Oil prices (/CL) are up modestly and but continue to show strength. U.S. crude inventories are lower than expected and geopolitical risks have pushed oil and other commodity prices higher over the last few months.

 

Treasuries are slightly higher ahead of the Wall Street open after falling sharply over the last few sessions. The benchmark 10-year yield hit 2.99% in yesterday’s premarket but is off of four year highs. Despite the equity pull-back over the last few sessions, option volatility is relatively muted. The closely-watched CBOE Volatility Index (VIX) is below $16 to start the day as positive earnings continue to push against uncertainty.  Overseas markets are mostly higher led by a 2% jump in China’s Shanghai index.  The U.S. economic calendar is full today with data due on Housing, consumer confidence and manufacturing along with the first round of debt supply with an auction on 2-Year Notes.    

 

Stock Stories:

Alphabet/Google (GOOG/GOOGL) – Earnings – The internet giant posted another positive earnings report after yesterday’s close as EPS and revenue beat expectations. Costs continue to rise to expand their business, which may become a headwind this year. The shares are up modestly ahead of the Wall Street open.

 

Major Economic Reports:

7:55 am CT - Redbook

8:00 am CT – S&P Case-Shiller HPI

8:00 ma CT – FHFA House Price Index

9:00 am CT – New Home Sales

9:00 am CT – Consumer Confidence

9:00 am CT – Richmond Fed Mfg. Index

12:00 pm CT – 2-Year Note Auction

 

Notable Earnings:   

Tuesday – 4/24:   

Before Market:   ATI, BIIB, CAT, KO, GLW, LLY, FITB, FCX, HOG, JBLU, LMT, MAS, MMM, PCAR, PHM, SAP, SHW, TECK, TRV, UTX, VZ, WYNN

After Market:  AMGN, COF, CB, CREE, RHI, SVU, TXN

 

Wednesday – 4/25:

Before MarketANTH, BA, BSX, CMCSA, DPS, ETR, GD, GT, HES, IR, NSC, OC, ROK, SIRI, TMO,TWTR, USG, VIAB

After Market: AMD, AFL, T, SAM, CMG, CTXS, EBAY, FB, F, GG, LVS, PYPL, QCOM, V, XLNX

 

*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.comor 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.

Apr 23, 2018 - Market Blog

4/23/2018

*Higher Rates!  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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After a rough end to last week, U.S. stock futures (/ES) are relatively flat ahead of Monday’s open. The tech sector led the downturn on Thursday and Friday with Apple (AAPL) leading the losses on an expected drop in iPhone sales this quarter. Earnings will be the focus this week with one-third of S&P 500 companies reporting quarterly results. So far about 80% of the companies that have reported have beaten expectations that are on the historically high side of norms. Oil prices (/CL) are down slightly but continue to show strength. U.S. crude inventories have fallen and geopolitical risks have pushed oil and other commodity prices higher over the last couple of months. President Trump tweeted last Friday that OPEC is keeping Oil prices artificially high and it will not be accepted, which may cause some added volatility this week for crude.

 

Treasuries are lower again ahead of the Wall Street open after falling sharply last week. The benchmark 10-year yield hit 2.99% in the premarket and is at its highest level in over four years. Higher rates pushed equities lower late last week and are attempting another push to 3% for the 10-Year Note. Overseas markets are mixed with weak closes in Japanese and Chinese shares despite some stability in manufacturing PMI, and the positive news out of North Korea on Friday. The U.S. data calendar is fairly light with the PMI and existing home sales due along with plenty of earnings reports.   

 

Stock Stories:

Alphabet/Google (GOOG/GOOGL) – Earnings due– The internet giant reports earnings after the close and the option market is pricing in a +/- move of $50.The stock is about 10% below its all-time highs reached at the end of January. The shares are up slightly ahead of the Wall Street open.

 

Major Economic Reports:

7:30 am CT – Chicago Fed Activity Index

8:45 am CT – PMI Composite

9:00 am CT – Existing Home Sales

 

Notable Earnings:   

Monday – 4/23:   

Before Market:   ALK, HAL, HAS, KMB, LII

After Market:  AMTD, GOOG/GOOGL, OI, WHR, ZION

 

Tuesday – 4/24:

Before Market:  ATI, BIIB, CAT, KO, GLW, LLY, FITB, FCX, HOG, JBLU, LMT, MAS, MMM, PCAR, PHM, SAP, SHW, TECK, TRV, UTX, VZ, WYNN

After Market: AMGN, COF, CB, CREE, RHI, SVU, TXN

 

*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.comor 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.

Showing Week of Apr 16, 2018

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Apr 22, 2018 - Weekend Market Update

TradeWise – Weekend Update

April 22, 2018

 

Stocks finished the week on a sour note on Friday as Apple (AAPL) dragged down the overall market. A warning on iPhone sales saw the tech product-maker slide 4%, which pushed the Nasdaq lower by over 1.5%.  Equities had a positive start to the week as quarterly earnings reports boosted the stock market. Interest rates pushed higher later in the week, which put pressure on the equity market on Thursday and Friday. About one-sixth of the S&P 500 companies have reported quarterly results with over 81% of those beating expectations. The problem is that much of the guidance has come in short of estimates as growth expected is at the high end of historical norms. The upcoming week is the busiest for earnings with more than a third of the S&P 500 set to report.  Option volatility perked up over the last few days of the week but remains at the lower end of its recent range as we've seen modest strength in stocks. The closely watched CBOE Volatility Index (VIX) fell 3% for the week but finished well off of Tuesdays lows under $15. Geopolitical risks were generally ignored but could come into play over the next few weeks. Trade tensions remain a headwind as they are raising fears about the global economic recovery. For the week, the benchmark S&P 500 Index (SPX) rose nearly 1% while the Dow Industrials ($DJI) rose a modest 0.4%. The tech-heavy Nasdaq (QQQ) still managed a 0.5% gain while the small caps (IWM) led the major indices by rising over 1%.

 

Oil prices (/CL) were choppy this past week but remain in a bullish trend. Crude rose 1% last week and are reflecting the uncertainty surrounding geopolitical and trade risks. President Trump tweeted out that OPEC continues to manipulate oil prices which could throw some added volatility into the sector over the next couple of weeks as we head into the historical driving season in the U.S.   Treasures fell sharply in the latter stages of the week despite the modest gains in equities. The inverse benchmark 10-year yield rose 12 bps to finish the week at 2.95% and it settled at its highest level in over 4 years. Inflation has begun to pick up a bit and the rising interest rates have pushed back against the equity market.

 

Earnings will be the main focus for the upcoming week led by results from the tech sector. Quarterly reports are due from Amazon (AMZN), Google/Alphabet (GOOG) and Facebook (FB) among others. Economic data is also heavy this week with reports due on housing and manufacturing. Key numbers this week will also be closely watched on International Trade, Durable Goods and the GDP report on Friday. A continuation of rising interest rates will also be in focus as the 10-Year attempts another run at 3%. If we see rates push above this level, it may put further pressure on stocks despite a healthy corporate environment.

 

Major Earnings for the Upcoming Week:

Monday:

A.M. –  ALK, HAL, HAS, KMB, LII

P.M.– AMTD, GOOG/GOOGL, OI, WHR, ZION

 

Tuesday:

A.M.– ATI, BIIB, CAT, KO, GLW, LLY, FITB, FCX, HOG, JBLU, LMT, MAS, MMM, PCAR, PHM, SAP, SHW, TECK, TRV, UTX, VZ, WYNN

P.M.– AMGN, COF, CB, CREE, RHI, SVU, TXN

 

Wednesday:

A.M. – ANTH, BA, BSX, CMCSA, DPS, ETR, GD, GT, HES, IR, NSC, OC, ROK, SIRI, TMO,TWTR, USG, VIAB

P.M. –AMD, AFL, T, SAM, CMG, CTXS, EBAY, FB, F, GG, LVS, PYPL, QCOM, V, XLNX

 

Thursday:

A.M. –ABBV, ALXN, ALLY, MO, AAL, AEP, BAX, BLMN, BWA, BMY, BC, CME, COP, DHI, DPZ, DNKN, FCAU, GM, HP, HSY, HLT, ITW, IP, KBR, LEA, MGM, NEM, NOK, PH, PEP, PX, RTN, LUV, TWX, UNP, UPS, XEL

P.M. –AMZN, ATHN, BYD, CY, DFS, EXPE, FSLR, HIG, INTC, KLAC, MAT, MSFT, NOV, NUS, PFG, SWN, SBUX, SYK, X, VRTX, WDC

 

Friday:

A.M.– CHTR, CVX, CL, D, XOM, LYB, MCO, PSX, COL, SPG, TEN, WY

 

Economic Releases (4/23– 4/27):

Monday:

7:30 am CT – Chicago Fed Activity Index

8:45 am CT – PMI Composite

9:00 am CT – Existing Home Sales

                                                                                                                                                                          

Tuesday:

7:55 am CT - Redbook

8:00 am CT – S&P Case-Shiller HPI

8:00 ma CT – FHFA House Price Index

9:00 am CT – New Home Sales

9:00 am CT – Consumer Confidence

9:00 am CT – Richmond Fed Mfg. Index

12:00 pm CT – 2-Year Note Auction

 

Wednesday:

6:00 am CT – MBA Mortgage Applications

9:30 am CT – Oil Inventories

12:00 pm CT – 5-Year Note Auction

 

Thursday:

7:30 am CT – Weekly Jobless Claims

7:30 am CT – International Trade

7:30 am CT – Durable Goods Orders

7:30 am CT – Wholesale Inventories

9:30 am CT – Natural Gas Inventories

10:00 am CT – Kansas City Fed Mfg. Index

12:00 pm CT – 7-Year Note Auction

 

Friday:

7:30 am CT – GDP

7:30 am CT – Employment Cost Index

8:45 am CT – Chicago PMI

9:00 am CT – Consumer Sentiment

12:00 pm CT – Baker-Hughes Rig Count

 

*Follow us on Twitter @TradeWise

 

*BOLDabove 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.

Apr 20, 2018 - Market Blog

4/20/2018

*Higher Rates hit stocks!  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**

 

U.S. stocks fell sharply on Thursday led by losses in the tech-heavy Nasdaq (QQQ). Asian chipmaker Taiwan Semi (TSM) fell over 5% and warned its second quarter revenue will fall short of expectations by 11%. This news flowed over to other chipmakers and also Apple (AAPL), which lost 2.8% in the session.  The financial sector outperformed yesterday as interest rates rose sharply on expectations of inflation increases this year. This morning, equity futures (/ES) are flat to slightly higher and are off of this morning’s lows ahead of the Wall Street open. Investors will focus on another round of corporate earnings today as economic data is extremely light. Oil prices (/CL) settled around $68.35 yesterday and continues to show strength. U.S. crude inventories have fallen and geopolitical risks have pushed oil and other commodity prices higher over the last couple of months. President Trump just tweeted that OPEC is keeping Oil prices artificially high and it will not be accepted, which may cause some added volatility in today’s session for crude.

 

Treasuries are flat to slightly lower after falling sharply yesterday. The benchmark 10-year yield hit 2.93% yesterday and is at its highest level in a month. Higher rates pushed equities lower on Thursday and are attempting another push to 3% for the 10-Year. Overseas markets were mixed with Asia lower led by a 1.5% drop in China’s Shanghai index. European markets are slightly higher on the back of positive earnings. The U.S. data calendar is light with only the rig count due along with Fedspeak from Evans and Williams.   

 

Stock Stories:

General Electric (GE) – Earnings – The Blue Chip company reported better than expected quarterly results this morning as EPS and Revenue beat estimates.GE Chairman and CEO John Flannery said, "The first quarter is a step forward in executing on our 2018 plan and we are seeing signs of progress in our performance. Industrial earnings, free cash flow, and margins all improved year over year. We reduced Industrial structural costs by $805 million and are on track to exceed our cost reduction goal of $2 billion in 2018." The shares are up 5% ahead of the Wall Street open.

 

Major Economic Reports:

8:40 am CT –   Fed’s Evans Speaks

10:15 am CT – Fed’s Williams Speaks

12:00 pm CT – Baker-Hughes Rig Count

 

Notable Earnings:   

Friday – 4/20:   

Before Market:   GE, HON, MAN, RF, SLB, SWK, STT, STI, SYF, WM

After Market:  N/A

 

Monday – 4/23:

Before Market:  ALK, HAL, HAS, KMB, LII

After Market:  AMTD, GOOG/GOOGL, OI, WHR, ZION

 

*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.comor 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.

Apr 19, 2018 - Market Blog

4/19/2018

*Dow struggles!  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**

 

The overall equity market in the U.S. rose modestly again on Wednesday but the Dow Industrials (DIA) fell a minimal 0.17%. Poor guidance from IBM led the index lower and slides in Johnson & Johnson (JNJ) and United Healthcare (UNH) also pressured the Dow. The financial names were mixed despite another strong result from Morgan Stanley (MS) and a jump in interest rates. The banks have soundly beaten expectations but the stock prices are falling post-earnings as a sell the news mentality has taken over in the sector. This morning, equity futures (/ES) are down slightly but are off of this morning’s lows ahead of the Wall Street open. Investors will focus on another round of corporate earnings today along with keeping an eye on any further tariff talk. Oil prices (/CL) posted a new 40-month high of $69.25 before settling around $68.80 yesterday, which is still a gain of 0.5% on the day. Price gains today have been a legacy of Wednesday's data showing an ongoing drop in U.S. crude inventories to five-year average levels, and news, that Saudi Arabia is looking for oil prices to rise above $80 a barrel. There is also a possibility that the U.S. will re-introduce sanctions on Iranian oil exports.

 

Treasuries are lower on a risk-on trade with longer dated maturities underperforming. The 10-year yield is 3 bps higher at 2.90%, extending yesterday's gain, while the 2-year rate is marginally lower at 2.42%. Overseas bonds were under pressure overnight too, with the U.K. Gilt leading the way in Europe, climbing 5.5 bps to 1.468%, perhaps hit by the end of the BoE buyback program over the past six weeks. The German Bund is up nearly 4 bps at 0.565% and both levels have not been seen since mid-March. Bonds aren't getting much help from the more cautious trade in equities overnight, nor the weaker than expected U.K. retail sales. Attention will remain on the number of earnings reports today. The U.S. data calendar includes weekly jobless claims, the April Philly Fed index, and March leading indicators. There is Fedspeak from Quarles and Mester and the Treasury announces 2-, 50, and 7-year notes, and auction $16.0 B of 5-year TIPS.  

 

Stock Stories:

Qualcomm (QCOM) – M&A activity – Qualcomm (QCOM) announced that Qualcomm and NXP Semiconductors N.V. (NXPI) at the request of the Ministry of Commerce in China have withdrawn and refiled the notice of acquisition regarding the companies' planned combination. In conjunction with the refiling, NXP and Qualcomm River Holdings B.V., an indirect wholly owned subsidiary of Qualcomm, have agreed, among other things, to extend the end date of their purchase agreement from April 25, 2018 to July 25, 2018.

 

Major Economic Reports:

7:00 am CT –   Fed’s Brainard Speaks

7:30 am CT –  Weekly Jobless Claims

7:30 am CT – Philly Fed Business Outlook

8:30 am CT – Fed’s Quarles Speaks

9:00 am CT – Leading Economic Indicators

 

Notable Earnings:   

Thursday – 4/19:   

Before Market:   ABB, ADS, BBT, BK, BX, DHR, GPC, KEY, NUE, NVS, PM, PPG, SON, TSM, WBC

After Market:  EGP, RCI, SKX

 

Friday – 4/20:

Before MarketGE, HON, MAN, RF, SLB, SWK, STT, STI, SYF, WM

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.comor 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.

Apr 18, 2018 - Market Blog

4/18/2018

*Earnings Season!  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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U.S. Stocks rose sharply again on Tuesday as quarterly earnings were the focus and geopolitical risks subsided. The benchmark S&P 500 (SPX) broke through major resistance at its 50-day moving average as the rally continued. All of the major indices all rose significantly led by a spike of 2% in the tech-heavy Nasdaq. Netflix (NFLX) helped propel the sector after a solid earnings beat on Monday after the close. This morning, equity futures (/ES) are modestly higher in a continuation of  the risk-on rally ahead of the Wall Street open. Investors will focus on another round of corporate earnings today along with keeping an eye on any potential glitch from the political side. Option Volatility continued its slide as equities rose for a second straight day. The closely-watched CBOE Volatility Index (VIX) fell another 8% on Tuesday and settled near $15.30.

 

Oil prices (/CL) are rising this morning after the API data showed a draw-down of inventories after the close yesterday.  Crude is just below 40-month highs while geopolitical risks and a falling U.S. Dollar ($DXY) are helping prop up commodities. Treasury yields are rising as improved risk appetite has extended the global equity rally. The 10-year Treasury rate is up to 2.85% but did show little strength despite Tuesday’s rally on the equity side. Overseas markets are higher led by a 1.42% rally in Japan’s Nikkei. Trade concerns are still a headwind but any strength in the U.S. has been met with gains globally. Earnings reports will remain front and center in the U.S., along with data that includes oil inventories, Fedspeak and the closely-watched Beige Book report this afternoon.  

 

Stock Stories:

Morgan Stanley (MS) – Earnings! – The investment bank posted a beat on earnings this morning as EPS and Revenue were above expectations.  The CEO stated, "We delivered very strong results this quarter, with record revenues and net income - and an ROE above our target range. Each of our businesses performed well, with significant client engagement across our global franchise, and Sales and Trading a particular highlight in a more active environment."

 

Major Economic Reports:

6:00 am CT –   MBA Mortgage Applications

7:30 am CT –   Fed’s Dudley Speaks

9:30 am CT – Oil Inventories

1:00 pm CT – Beige Book

2:15 pm CT – Fed’s Dudley Speaks

3:15 pm CT – Fed’s Quarles Speaks

 

Notable Earnings:   

Wednesday – 4/18:   

Before Market:   ABT, ASML, MS, TXT, USB

After Market:  AA, AXP, CP, CVBF, GSBC, KMI, PIR, TMK, VMI

 

Thursday – 4/19:

Before Market:  ABB, ADS, BBT, BK, BX, DHR, GPC, KEY, NUE, NVS, PM, PPG, SON, TSM, WBC

After Market: EGP, RCI, SKX

 

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Apr 17, 2018 - Market Blog

4/17/2018

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U.S. Stocks rose sharply on Monday as geopolitical risks eased and quarterly earnings came in strong. The major indices all rose more than three-quarters of a percent as the rally was broad-based. Option Volatility fell throughout the session as equities rose. The closely-watched CBOE Volatility Index (VIX) fell nearly 5% on Monday and settled below $17 for the first time in a month. This morning, equity futures (/ES) are continuing the rally and the Dow Industrials ($DJI) are over 100 points higher ahead of the Wall Street open. Investors will focus on another round of corporate earnings today along with keeping an eye on political rhetoric. Oil prices (/CL) are flat this morning and will look to reverse yesterday’s 1.5% slide.  Crude is just below 40-month highs and geopolitical risks and a falling U.S. Dollar ($DXY) are helping prop up commodities in general.

 

Treasury yields are unchanged to fractionally higher, even as improved risk appetite has extended equity gains in North America, Europe, and Japan. The 10-year Treasury rate is at  2.834%, though off an earlier high of 2.845%. The 2-year rate is flat at 2.377% after testing 2.389%. European sovereign rates are mostly lower after retreating from earlier peaks, though core markets are underperforming. Weaker than expected German ZEW, a miss on U.K. wage data (though the unemployment rate fell to a new low at 4.2%), and a downward revision to Italian HICP inflation were underpinning. Meanwhile, ECB's Praet said inflation is still not on a sustainable path higher, a precondition for the QE phase out. Earnings reports will remain front and center in the U.S., along with data that includes March housing starts, industrial production, and weekly chain store sales. Fedspeak is also heavy with no fewer than four officials at the podium, including Williams, Quarles, Harker and Evans.

 

Stock Stories:

Netflix (NFLX) – Earnings! – The online streaming giant posted roughly in-line results after the close yesterday but added more subscribers than expected. The company reported 7.41M new members with Q1 U.S. memberships rising by 1.96M and internationally added 5.46M memberships, which was above expectations of 6.4M additions.  The shares are jumping by nearly 7% on the news and is just below all-time highs reached last month.

 

Major Economic Reports:

7:30 am CT –   Housing Starts

7:55 am CT –   Redbook

8:15 am CT –   Industrial Production

8:15 am CT --   Fed’s Williams Speaks

9:00 am CT --   Fed’s Member Quarles Speaks

10:00 am CT – Fed’s Member Harker Speaks

12:40 pm CT – Fed’s Member Evans Speaks

 

Notable Earnings:   

Tuesday – 4/17:   

Before Market:   CMA, GS, JNJ, NTRS, PGR, PLD, UNH

After Market:  ADTN, BMI, CSX, HBHC, IBM, ISRG, LRCX, SENR, UAL

 

Wednesday – 4/18:

Before MarketABT, ASML, MS, TXT, USB

After Market: AA, AXP, CP, CVBF, GSBC, KMI, PIR, TMK, VMI

 

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Apr 16, 2018 - Market Blog

4/16/2018

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Stock futures (/ES) are sharply higher to start the week with the focus on earnings. Investors will watch the corporate results throughout the week and keep an eye on geopolitical news for market direction. This past Saturday, the U.S., Britain and France launched more than 100 missiles on targeted facilities in Syria. The strikes were a justified, legitimate and proportionate response to the regime’s use of chemical weapons according to the Pentagon. Oil prices (/CL) are down over 1% but are off of overnight lows.  The dip today is a correction after crude prices rallied some 8% last week, leaving a 40-month high in the case of WTI contracts at $67.76. An abatement in concerns about an escalation in the U.S.-Russia faceoff in the Mideast has seen upward pressures on crude prices recede. A long position in oil futures is a top-tier hedge-of-choice for fund managers during times of rising Mideast-centric geopolitical tensions. Data on Friday, meanwhile, showed the U.S. rig count has now risen by 20% y/y to the highest levels since March 2015. 

 

Treasuries are weaker, along with global bonds, as risk-off trades on Syria unwind. Stocks are mostly firmer, though gains in European markets are being pared. Longer dated bond yields were on the rise overnight, with the 10-year Treasury now up 3.5 bps to 2.86% from 2.83% earlier. The 2-year is 2.5 bps higher at 2.38% versus 2.236%. The lack of retaliation to the Allies' missile strike on Syria has provided a bullish undercurrent to equities. Expectations for strong Q1 earnings news is also supporting equities. Bank of America (BAC) was just out with its beat and Netflix (NFLX) is set to report after the close. There wasn't much data overnight but the U.S. calendar has a key report on March retail sales, the April Empire State index, February business inventories, the April NAHB housing market index along with February Treasury capital flow data. For Fedspeak, there is Bostic, a voter, speaks on the economy.

 

Stock Stories:

Bank of America (BAC) – Earnings! – The bank posted better than expected EPS and Revenue this morning with a jump in deposit balances. CEO Moynihan said, "Our responsible growth model continues to deliver consistent results. Strong client activity, coupled with a growing global economy and solid U.S. consumer activity, led to record quarterly earnings. We grew loans in our business segments by $45 billion and increased deposits by $41 billion. We continue to invest in new capabilities in our mobile banking app, the expansion and renovation of our financial centers, and the hiring of additional client relationship professionals. We believe these investments, and our focus on operational excellence, will drive sustainable growth over time."

 

Major Economic Reports:

7:30 am CT –   Retail Sales

7:30 am CT -Empire State Mfg. Survey

9:00 am CT –   Business Inventories

9:00 am CT - Housing Market Index

12:15 pm CT – FOMC Member Bostic Speaks

3:00 pm CT --  Treasury International Capital

 

Notable Earnings:   

Monday – 4/16:   

Before Market:   BAC, MTB

After Market:  NFLX

 

Tuesday – 4/17:

Before Market:  CMA, GS, JNJ, NTRS, PGR, PLD, UNH

After Market:   ADTN, BMI, CSX, HBHC, ISRG, SENR

 

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

 

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