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Nov 25, 2020 - Market Blog

11/25/2020

 

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Trying to Fill the Gap

After “gapping” higher on Monday, shares of clothing retailer, Gap Inc. (GPS) are trading lower in the pre-market on worse than expected earnings.  Gap reported earnings of $0.25 per share versus analysts’ expectations of $0.29. Revenue came in at $3.99 billion for the quarter which was unchanged year over year, but an improvement over the past two quarters.  Sales saw a 20% decline in physical stores but rose 61% online.  Shares of GPS are trading 13% lower in the pre-market.

 

A Stag’s Leap

Deere & Co. (DE), reported strong fourth quarter numbers this morning, while also increasing guidance for the coming fiscal year.  Earnings per share came in at $2.39, which beat analysts’ estimates of $1.49.  The heavy equipment maker expects to earn approximately $3.8 billion in the 2021 fiscal year which surpassed analysts’ forecasts of $3.4 billion.  The company sees gains in agricultural equipment in all regions except Asia and projects construction equipment sales rising between 5% and 10% for 2021.  DE is trading almost 3% higher in the pre-market.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) unchanged, near 3632

U.S. Crude Oil futures (/CL) +1.4%, near $45.50 a barrel

CBOE Volatility Index (VIX) +2.1%, near 22.10

U.S. Gold Futures (/GC) +0.2%, near $1815 an ounce

 

Major Economic Reports:

 

6:00 am CT – MBA Mortgage Applications    

7:00 am CT -  Bank Reserve Settlement

7:30 am CT – Jobless Claims

7:30 am CT -  Durable Goods Orders

7:30 am CT – GDP

7:30 am CT -  International Trade in Goods [Advanced]

7:30 am CT -  Corporate Profits

9:00 am CT – Personal Income and Outlays

9:00 am CT -  New Home Sales

9:00 am CT -  State Street Investor Confidence Index

9:30 am CT – EIA Petroleum Status Report  

11:00 am CT–EIA Natural Gas Report

12:00 pm CT -Baker Hughes Rig Count

1:00pm CT –  FOMC Minutes

 

Notable Earnings

  

Wednesday:

A.M. – DE

P.M. – N/A

 

Friday:

A.M. – N/A

P.M. – N/A

 

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

 

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Nov 24, 2020 - Market Blog

11/24/2020

 

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In Janet We Trust

S&P 500 futures (/ES) are up this morning as it is being reported that President-elect Joe Biden plans to nominate former Federal Reserve Chairwoman Janet Yellen, to become the next Secretary of the Treasury, according to people familiar with the decision.  She will be tasked with leading Biden’s economic response to the coronavirus pandemic, which has wreaked havoc on the economy and led millions of Americans to lose their jobs.  Ms. Yellen, who was the first woman to lead the Fed, would become the first person to have headed the Treasury, the central bank and the While House Council of Economic Advisers.

 

Best Buying During a Pandemic

Best Buy (BBY) reported fiscal Q3 earnings of $2.06 per share, compared with $1.13 a year ago, beating estimates of $1.72.  Revenue came in above estimates of $10.97 billion at $11.85 billion for the quarter.  The consumer electronics retailer's same-stores sales growth improved to 23% from 1.7% to beat expectations of 13.6%.  U.S. comparable online sales soared 173.7%, after rising 15% a year ago.  The company did not provide financial guidance.  Best Buy shares are almost 5% lower in the pre-market.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.75%, near 3603

U.S. Crude Oil futures (/CL) +1.85%, near $43.85 a barrel

CBOE Volatility Index (VIX) -2.6%, near 22.00

U.S. Gold Futures (/GC) -1.95%, near $1802 an ounce

 

Major Economic Reports:

 

7:55 am CT - Redbook      

8:00 am CT - FHFA House Price Index

8:00 am CT - S&P Corelogic Case-Shiller HPI

9:00 am CT – Consumer Confidence

9:00 am CT – Richmond Fed Manufacturing Index

 

Notable Earnings

 

Tuesday:

A.M. – ADI,ANF, BBY, BURL, DKS, DLTR, HRL, MDT

P.M. – ADSK, AEO, GPS, HPQ, JWN, VNW

 

Wednesday:

A.M. – DE

P.M. – N/A

 

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

 

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Nov 23, 2020 - The Week Ahead

11/23/2020

 

The Week Ahead

 

Snoopy is Getting Braces!

MetLife (MET) and SmileDirectClub (SDC) just announced a surprise joint venture that may help pave the way for the trendy tele-dentistry orthodontics platform to quickly expand from its rapidly growing customer base of one million users into the dental insurer’s expansive pool of 20 million covered customers. The Nashville-based oral care company have interrupted the expensive teeth straightening industry with a more affordable and streamlined regimen of direct shipment using the latest imaging technology. Shares of both companies are trading higher ahead of the open with SDC up nearly 10% off the deal.    

 

Getting Locked up?

Shares of Foot Locker (FL) have cooled down from their run off 100% since April after reporting their latest quarterly earnings figures late last week.  The iconic athletic shoe retailer saw same-store-sales jump an impressive 7.7% over the previous three months as a late back-to-school rally helped to spur shoe demand to the tune of $2.11 billion in revenue. The outlook remains uncertain with many athletic programs now on hold across the country amid increased Covid-19 levels which has the company guessing around future demand. Digital sales growth remains a bright spot as demand jumped by 50% as consumers adapt to the current environment. Shares fell 3% on Friday and are coming under pressure again this morning off a notable analyst downgrade.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.35%, near 3567

U.S. Crude Oil futures (/CL) +0.97%, near $42.85 a barrel

CBOE Volatility Index (VIX) -1.02%, near 23.42

U.S. Gold Futures (/GC) -0.44%, near $1864 an ounce

 

Economic Releases (11/23-11/27):

 

Monday:

7:30 am CT – Chicago Fed National Activity Index

10:00 am CT – Export Inspections  

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

3:00 pm CT – Crop Progress            

 

Tuesday:

7:55 am CT - Redbook      

8:00 am CT - FHFA House Price Index

8:00 am CT - S&P Core-logic Case-Shiller HPI

9:00 am CT – Consumer Confidence

9:00 am CT – Richmond Fed Manufacturing Index

 

Wednesday:

6:00 am CT – MBA Mortgage Applications    

7:00 am CT - Bank Reserve Settlement

7:30 am CT – Jobless Claims

7:30 am CT - Durable Goods Orders

7:30 am CT – GDP

7:30 am CT - International Trade in Goods [Advanced]

7:30 am CT - Corporate Profits

9:00 am CT – Personal Income and Outlays

9:00 am CT - New Home Sales

9:00 am CT - State Street Investor Confidence Index

9:30 am CT – EIA Petroleum Status Report  

11:00 am CT – EIA Natural Gas Report

12:00 pm CT – Baker Hughes Rig Count

1:00pm CT – FOMC Minutes

 

Thursday

 

Thanksgiving Day

**Bank Holiday; Markets Closed**

 

Friday:

**Markets Close at 12:00 CT **

7:30 am CT – Export Sales

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply            

 

Major Earnings for the Upcoming Week (11/23-11/27):

 

Monday:

A.M. – N/A

P.M. – AMBA, NTNX,URBN

 

Tuesday:

A.M. – ADI,ANF, BBY, BURL, DKS, DLTR, HRL, MDT

P.M. – ADSK, AEO, GPS, HPQ, JWN, VNW

 

Wednesday:

A.M. – DE

P.M. – N/A

 

Thursday:

A.M. – N/A

P.M. – N/A

 

Friday:

A.M. N/A

P.M.– N/A

 

 *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

Showing Week of Nov 16, 2020

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Nov 20, 2020 - Market Blog

11/20/2020

 

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Mnuchin vs. Powell

Yesterday after the close, Treasury Secretary Mnuchin raised uncertainty following a decision to allow several emergency Federal Reserve lending programs to expire, which sent equity futures lower.  These Fed programs that have backstopped corporate credit and municipal lending markets will end on December 31st.  Fed Chairman Powell had indicated that he did not think it would be appropriate to allow the programs to expire in remarks on Tuesday.  The Fed signaled that they were disappointed in the decision, as they feel the programs still serve an important role.

 

Pfizer Seeking Vaccine Authorization

S&P 500 futures (/ES) have rebounded from lower levels after Pfizer (PFE) released they plan on asking U.S. health regulators to permit the use of their Coronavirus vaccine.  Following the filing, it will be up to the FDA to decide whether the company’s two-shot vaccine is safe enough to distribute to millions of people.  Pfizer feels that their filing could open the door to distribution by the middle to end of December.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) -0.11%, near 3576

U.S. Crude Oil futures (/CL) -0.45%, near $41.71 a barrel

CBOE Volatility Index (VIX) -1.9%, near 22.66

U.S. Gold Futures (/GC) +0.8%, near $1876 an ounce

 

Major Economic Reports:

12:00 pm CT – Baker-Hughes Rig Count

2:00 pm CT – Cattle on Feed

 

Notable Earnings

 

Friday:

A.M. – FL

P.M. – N/A

 

Monday:

A.M.–  N/A

P.M. – AMBA, NTNX, URBN

 

 

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

 

*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 19, 2020 - Market Blog

11/19/2020

 

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Chipping away

Nvidia (NVDA) reported fiscal third quarter sales of $4.73 billion, up by 57% from the previous quarter. Earnings came at $2.91 per share, beating the consensus estimate of $2.57 per share.  The graphics chipmaker saw no immediate letup in demand of home computing, videogaming and the use of its chips in big data center.  Nvidia projects overall revenue growth of 55% year-over-year for the fiscal fourth quarter, well above the 41% expected by analysts. NVDA is trading slightly lower in the pre-market.

 

The Sound of Music

Sonos (SONO) reported fiscal fourth quarter earnings of $0.33 per share versus a loss of $0.15 per share a year ago, bettering the consensus of $0.15.  The maker of smart speakers and other audio electronics for the home said they are anticipating revenue of around $1.5 billion for fiscal 2021, versus market projections of $1.38 billion.  The company also announced a common stock repurchase program to $50 million.  It completed its previous $50 million buyback program during Q4 of fiscal 2020, when it purchased 3.8 million shares.  Shares of SONO are trading 18% higher in the pre-market.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) -0.25%, near 3555

U.S. Crude Oil futures (/CL) -0.19%, near $41.93 a barrel

CBOE Volatility Index (VIX) -0.6%, near 23.70

U.S. Gold Futures (/GC) -0.8%, near $1858 an ounce

 

Major Economic Reports:

 

7:30 am CT – Jobless Claims

7:30 am CT – Philadelphia Fed Manufacturing Index

9:00 am CT – E-Commerce Retail Sales

9:00 am CT – Existing Home Sales

9:00 am CT – Leading Indicators

9:30 am CT – EIA Natural Gas Report

10:00 pm CT – Kansas City Fed Manufacturing Index

3:30 pm CT – Fed Balance Sheet

 

Notable Earnings

 

Thursday:

A.M.– CSIQ, M, NTES

P.M. – INTU, ROST, WDAY

 

Friday:

A.M. – FL

P.M. – N/A

 

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

 

*Follow us on Twitter @TradeWise

 

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

 

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Nov 18, 2020 - Market Blog

11/18/2020

 

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Clear for Take-Off

Boeing (BA) may finally be on the right path to put the pair of horrific crashes behind them after receiving the essential FAA approval to begin allowing their 737 MAX back in the air.  The plane has been grounded since March of 2019 which has forced many organizational and structural changes to combat the core problem. Several hurdles still remain including the tall order of gaining confidence back from disenfranchised customers while simultaneously selling the planes to battered airlines who are still navigating through one of the toughest travel periods in modern history. Boeing has already seen 10% of their backorders cancelled with many more expected into next year. Shares are up 7% in reaction to the important development. 

 

All-Time High?

Shares of big-box retailer, Target (TGT) are moving dangerously close to breaking new highs this morning which were carved out nearly one month ago at $167.42 after posting their latest quarterly report.  The iconic company saw an adjusted earnings result of $2.79 which easily beat consensus and was more than double last year’s number.  Comparable same store sales soared by an impressive 20.7% as the combination of live and virtual shopping was a strong combination amid the extended pandemic norm.  Overall, revenue extended to $22.63 billion with digital sales exploding by a whopping 155% which is translating to strong momentum leading into the ever-important holiday shopping season.   

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.08%, near 3610

U.S. Crude Oil futures (/CL) +1.27%, near $42.18 a barrel

CBOE Volatility Index (VIX) -1.63%, near 22.34

U.S. Gold Futures (/GC) -0.42%, near $1877.00 an ounce

 

Major Economic Reports:

6:00 am CT – MBA Mortgage Applications

7:30 am CT – Housing Starts and Permits

9:00 am CT – Quarterly Services Survey

9:30 am CT – EIA Petroleum Status Report

 

Notable Earnings

 

Wednesday:

A.M. – LOW, TGT, TJX

P.M– LB, NVDA

 

Thursday:

A.M. – CSIQ, M, NTES

P.M. – INTU, ROST, WDAY

 

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

 

*Follow us on Twitter @TradeWise

 

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

 

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Nov 17, 2020 - Market Blog

11/17/2020

 

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Pharmacy Prime

Amazon (AMZN) made its latest move into a new market when it announced this morning that customers will be able to fill prescriptions online at Amazon Pharmacy. Amazon Prime members will be able to save money when purchasing medication, even without insurance.  Prime members will be able to save as much as 80% on generic meds, and up to 40% on name brands.  Amazon bought online pharmacy, Pill Pack Inc. in 2018 for roughly $1 billion, which gives the company the ability to fill prescriptions throughout the U.S.  Shares of CVS Health Corp. (CVS) are almost 7% lower in the pre-market, while Walgreens Boots Alliance Inc. (WBA) is trading over 9% lower.  AMZN is currently almost 2% higher, pre-market.

 

Walmart Feeling Lonely

Walmart (WMT) saw its e-commerce sales jump 79% in the third quarter, which helped the company beat earnings estimates.  The grocery giant posted earnings per share of $1.34, which beat analysts’ expectations of $1.19. Revenue came in above expectations at $134.7 Billion versus estimates of $131.5 Billion.  Although the company saw gains in online sales, U.S. in-store shopper traffic decreased 14.2%.  Shares of WMT are trading just over 1% lower in the pre-market.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) -0.6%, near 3599

U.S. Crude Oil futures (/CL) -0.9%, near $40.95 a barrel

CBOE Volatility Index (VIX) +4.6%, near 23.50

U.S. Gold Futures (/GC) -0.12%, near $1885 an ounce

 

Major Economic Reports:

 

7:30 am CT – Retail Sales

7:30 am CT – Import and Export Prices

7:55 am CT – Redbook

8:15 am CT – Industrial Production

9:00 am CT – Business Inventories

9:00 am CT – Housing Market Index

 

Notable Earnings

 

Tuesday:

A.M. – HD, KSS, SE, WMT

P.M. –NIO

 

Wednesday:

A.M. – LOW, TGT, TJX

P.M. – LB,NVDA

 

Option Trade CSPR, Ideas for your Inbox! Get 2 Free Strategies for 60 days email support@tradewise.com or call 877.733.6786*

 

*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 16, 2020 - The Week Ahead

11/16/2020

 

The Week Ahead

 

Shots for everyone

U.S. stock futures (/ES) are trading higher in pre-market after drug company Moderna (MRNA) announced that preliminary trial data showed its coronavirus vaccine was more than 94% effective.  Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy.  Moderna also announced that its vaccine would keep for a month in regular refrigerators, providing a distributional advantage over the Pfizer/BioNTech product, which must be shipped in a special deep-freeze container. S&P 500 futures are up 0.85% in response while shares of Moderna are up more than 13% in the pre-market.

 

‘Tis the shopping week

This week will be a busy one for retail earnings, as Walmart (WMT), Home Depot (HD), Target (TGT) and Lowes (LOW) are amongst the big-box companies that will be reporting earnings throughout the week.  Walmart and Home Depot will be the first out of the gate reporting fiscal-third quarter earnings on Tuesday morning.  Both stocks are up about 26% in 2020, helped by the Covid-19 crisis.  Walmart has benefited from its position as an essential retailer, while consumers’ increasing home purchases, and willingness to spend on DIY projects has been a tailwind for Home Depot.  Smaller rivals Target and Lowes, up 27% and 33% year to date respectively, will report the following morning.

 

Market Movers and Shakers (as of this writing)

S&P 500 futures (/ES) +0.85%, near 3612

U.S. Crude Oil futures (/CL) +4.30%, near $41.85 a barrel

CBOE Volatility Index (VIX) +1.00%, near 23.40

U.S. Gold Futures (/GC) -0.25%, near $1881 an ounce

 

Economic Releases (11/16-11/20):

 

Monday:

7:30 am CT – Empire State Manufacturing Index

10:00 am CT – Export Inspections

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

3:00 pm CT – Crop Progress

 

Tuesday:

7:30 am CT – Retail Sales

7:30 am CT – Import and Export Prices

7:55 am CT – Redbook

8:15 am CT – Industrial Production

9:00 am CT – Business Inventories

9:00 am CT – Housing Market Index

 

Wednesday:

6:00 am CT – MBA Mortgage Applications

7:30 am CT – Housing Starts and Permits

9:00 am CT – Quarterly Services Survey

9:30 am CT – EIA Petroleum Status Report

 

Thursday:

7:30 am CT – Jobless Claims

7:30 am CT – Philadelphia Fed Manufacturing Index

9:00 am CT – E-Commerce Retail Sales

9:00 am CT – Existing Home Sales

9:00 am CT – Leading Indicators

9:30 am CT – EIA Natural Gas Report

10:00 pm CT – Kansas City Fed Manufacturing Index

3:30 pm CT – Fed Balance Sheet

3:30 pm CT – Money Supply

 

Friday:

12:00 pm CT – Baker-Hughes Rig Count

2:00 pm CT – Cattle on Feed

 

Major Earnings for the Upcoming Week (11/16-11/20):

Monday:

A.M. – JD, PANW, TSN, VOD

P.M. – BIDU, CODX, IQ, SDC, YY

 

Tuesday:

A.M. – HD, KSS, SE, WMT

P.M. – NIO

 

Wednesday:

A.M. – LOW, TGT, TJX

P.M. – LB, NVDA

 

Thursday:

A.M. – CSIQ, M, NTES

P.M. – INTU, ROST, WDAY

 

Friday:

A.M. – FL

P.M.– N/A

 

 *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