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Stocks

The Market In 5 Minutes: Netflix Beat, Murdoch And Facebook, Noto Leaves Twitter


IN THE NEWS

TD Ameritrade AMTD continued to press all-time highs Monday after announcing it would become the first U.S. retail broker to enable 24-hour trading. Investors on the Thinkorswim or mobile platforms can trade 12 exchange-traded funds while markets are closed: Link

Twitter's Chief Operating Officer Anthony Noto, perhaps the most visible Twitter TWTR executive aside from CEO Jack Dorsey, will leave the social media giant: Link

Netflix NFLX moved up 10 percent after reporting its fourth quarter results, which included a strong top and bottom-line beat and the net addition of 8.3 million new users across the world: Link

News Corp Executive Chairman Rupert Murdoch said if Facebook FBis serious about promoting “trusted content” and filtering fake news out of its news feed, it should pay publishers fees similar to those cable distributors pay to television channels: Link $

 

Procter & Gamble PG Chief Executive David Taylor on Monday outlined steps the company is taking to keep teens from eating Tide laundry pods for sport, a behavior he called a “dangerous trend” fueled by social media: Link $

Bacardi has agreed to buy out Patron Spirits International in a deal valuing the top high-end tequila maker at $5.1 billion, highlighting the appetite big drinks groups have for the Mexican spirit: Link

U.S. President Donald Trump’s decision to slap tariffs on solar panel imports is a blow to a booming global industry. The protectionist measures will pull investments in the technology out of the United States and into Asia and other regions, as the industry tries to make up for the lost opportunity in America, industry sources said on Tuesday: Link

U.S. Vice President Mike Pence said the U.S. should retain its dominant role as mediator of the Israeli-Palestinian conflict, rebuffing Palestinian appeals to the European Union to take the reins: Link

 

ECONOMIC DATA

  • Redbook Reports US Retail Sales Up 3.8% YoY, Flat MoM
  • The Richmond Fed manufacturing index for January will be released at 10:00 a.m. ET.
  • The Treasury is set to auction 4-week bills at 11:30 a.m. ET.
  • The Treasury will auction 2-year notes at 1:00 p.m. ET.
  • Chicago Federal Reserve Bank President Charles Evans is set to speak in Chicago, Illinois at 6:30 p.m. ET.

ANALYST RATINGS

  • Wells Fargo upgraded Dollar General DG from Market Perform to Outperform
  • Morgan Stanley upgraded Hewlett Packard Enterprise HPE from Equal-Weight to Overweight
  • Morgan Stanley downgraded HP Inc HPQ from Overweight to Equal-Weight
  • Stifel downgraded Wayfair W from Buy to Hold
  • Morgan Stanley downgraded GoPro GPRO from Equal-Weight to Underweight

Benzinga is a fast-growing financial media outlet that empowers investors with market-moving content. The site also manages Benzinga Pro, a streaming platform with real-time headlines, data and actionable alerts. Sign up for a free trial and profit with faster news now.

This article is from Benzinga and is being posted with Benzinga's permission. The views expressed in this article are solely those of the author and/or Benzinga and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Stocks

Kickin' It


The stock market delivered another classic (and record-setting) performance on Monday.  We call it "classic" because the market never sold off on the shutdown uncertainty, yet it rallied anyway on the news of an agreement to fund the government through February 8.

It was a kick-the-can-down-the-road approach by Congress, which ultimately resorted in another kick in the behind for short sellers waiting for this stock market to get rolled back.

The funding resolution buys some time, but there isn't a whole lot of faith in the idea that Congress will avoid another game of brinkmanship leading up to the February 8 deadline. 

We'll see what we see soon enough.  It may be politics as usual in Washington DC, yet it's business as usual on Wall Street, which is translating into further gains for the major indices and a deepening fear of missing out on further gains for sidelined participants.

The fact that the stock market is overbought on a short-term basis and that investor sentiment is hitting bullish extremes are common denominators in most market commentary.  They are the basis for why many pundits think a pullback is imminent.

A consolidation phase wouldn't surprise anybody, yet the staying factor for many in the market already is that a lot of sidelined participants are hoping for a pullback to put money to work. In other words, they see a qualifying basis to remain in the market knowing there are interested buyers waiting in the wings who could provide the fuel for the next leg higher.

That bullish outlook is being fortified, too, by rising earnings expectations.  Analysts are playing catch up with the tax reform impact.  According to FactSet, S&P 500 earnings for all of 2018 are now projected to increase 18.6%, versus 11.1% on December 1.

The earnings news since yesterday's close has been generally supportive to the earnings outlook.  Netflix (NFLX) wowed investors with its subscriber growth and first quarter guidance and is indicated 11% higher.

Dow component Procter & Gamble (PG) topped fiscal second quarter earnings and raised the high end of its fiscal 2018 EPS growth guidance range.  Fellow Dow component Travelers (TRV) blew past the consensus fourth quarter earnings estimate while Johnson & Johnson (JNJ) beat estimates and issued FY18 guidance above expectations.  Verizon (VZ) came up a bit shy, but seems to have pleased with its revenue performance and revenue outlook.

Separately, JPMorgan Chase (JPM) announced a $20 billion, five-year investment plan, which will include higher wages for 22,000 employees, hiring 4,000 more workers, and opening 400 new Chase branches.

That is all good, and it is the type of news that fits well with the economic and earnings outlook narrative.  The futures market, though, has been slow to respond.

The S&P futures are down three points, the Nasdaq 100 futures are down four points, and the Dow Jones Industrial Average futures are down 10 points.

With the move the major indices made yesterday, though, and the move they have made since the beginning of the year, it is easy to understand why the futures market isn't in overdrive for the opening indication.

What matters most for the stock market right now, however, isn't how it opens, but how it behaves after the open. The resilience to early selling efforts has been a rallying point time and time again, so everyone will be watching to see if a similar outcome happens today.

There won't be any economic data of note to move things along, yet there should be plenty of interesting headlines out of the World Economic Forum in Davos, which begins today, and perhaps out of Montreal where round six of the NAFTA negotiations is getting underway.

In other developments, the Bank of Japan voted 8-1 to leave its policy rate at -0.1% and to continue its yield curve control policy so that long-term rates remain around 0.0%.  Those decisions were expected, yet there was some enthusiasm behind the understanding that the Bank of Japan didn't hint at any early withdrawal of its ultra-easy policy.

--Patrick J. O'Hare, Briefing.com

This article is from Briefing.com and is being posted with Briefing.com's permission. The views expressed in this article are solely those of the author and/or Briefing.com and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 


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Stocks

The Hammerstone Report - Early Look


Tuesday, January 23, 2018

Stock futures are edging slightly lower after markets posted record highs yesterday, with optimism high ahead of this earnings season as investors and analyst count on the newly announced tax reform bill out of Washington to be a benefit for corporate earnings. Stocks surged yet again on Monday, extending a 3-week rally that has seen major averages rise between 5%-7% since the start of the year, as companies beat analyst estimates and the Senate moved to end a government shutdown. The S&P 500 index gained 0.8% to an all-time high, while the Nasdaq Composite closed above 7,400 for the first time ever though gains were led by telecom and energy shares. Emerging-market stocks advanced for a seventh day according to Bloomberg as optimism over corporate earnings lifted global equities.

After U.S. markets closed on Monday, Congress passed a three-week funding measure that brought a halt to the three-day shutdown, with the bill then signed by President Donald Trump. The agreement keeps the government running up to Feb. 8, though underlying disagreements between the Republicans and the Democrats on immigration and other topics remain.

In Asian markets, The Nikkei Index leapt 307 points to end at 24,124, the Shanghai Index gained 45 points (1.29%) to settle at 3,546 and the Hang Seng Index surged 537 points (1.66%) to close at 32,930. Japan’s Nikkei closed above 24,000 for the first time since November 1991, continuing to climb even after the Bank of Japan’s midday policy statement gave a fresh lift to the yen. In Europe, the German DAX is up over 70 points at 13,540 (new record highs), while the FTSE 100 is up a few points around 7,725.

Market Closing Prices Yesterday

  • The S&P 500 Index jumped 22.67 points, or 0.81%, to 2,832.97
  • The Dow Jones Industrial Average rose 142.88 points, or 0.55%, to 26,214.60
  • The Nasdaq Composite spiked 71.65 points, or 0.98%, to 7,408.03
  • The Russell 2000 Index advanced 7.54 points, or 0.47% to 1,605.17

Events Calendar for Today

  • 7:45 AM EST       ICSC Weekly Retail Sales
  • 8:55 AM EST       Johnson/Redbook Weekly Sales
  • 10:00 AM EST     Richmond Fed Manufacturing Index for January…est. 19
  • 4:30 PM EST        API Weekly Inventory Data
  • 6:30 PM EST        Fed’s Evans speaks

Earnings Calendar:

  • Earnings Before the Open: AMTD, ATI, BKU, FITB, HBAN, JNJ, KMB, PG, PLD, SNV, STT, TRV, UAL, VZ, WAT
  • Earnings After the Close: CNI, COF, TRMK, TSS, TXN, UMPQ

World News

  • Bank of Japan Gov. Haruhiko Kuroda said the central bank hasn’t reached the point at which it needs to consider how to exit monetary stimulus.
  • A magnitude 7.9 earthquake struck off the Gulf of Alaska early Tuesday, prompting tsunami watches for parts of the U.S. West Coast. The earthquake struck 174 miles southeast of Kodiak City, Alaska, at 1.31 a.m. Pacific time
  • German ZEW current conditions 95.2 in January vs 89.3 in December
  • Germany's ZEW economic expectations 20.4 in January vs. 17.5 forecast

Sector News Breakdown

Consumer

  • Whirlpool (WHR) and other appliance makers likely active after the U.S.’s imposed steep tariffs on imports of washing machines and solar panels, aimed mainly at Asian producers—including South Korean washing-machine makers
  • Dicks Sporting Goods (DKS) upgraded to positive from neutral at Susquehanna with a street-high $41 tgt citing signs that comp. sales trends have improved
  • New Oriental Education (EDU) Q2 EPS 9c/$467.18M vs. est. 11c/$456.04M; said Q1 total student enrollments in academic subjects tutoring and test preparation courses increased by 43% year-over-year to approximately 1,877,100 for the second fiscal quarter of 2018
  • Foot Locker, Inc. (FL) said it has made a strategic investment in Carbon38, taking a minority stake in the world's destination for women's luxury activewear

Energy

  • Solar stocks First Solar (FSLR), SunPower (SPWR) rise after the Trump administration imposed 30% tariffs Monday on imported solar-energy cells and modules. The decision imposes a 30% tariff on imported solar cells and modules in the action's first year, with levies slowly falling to 15% four years from now. The U.S. government will exempt the first 2.5 gigawatts of solar cells imported into America in each of the next four years
  • Plains All American Pipeline (PAA) said it received sufficient binding commitments on its initial open season to build a new pipeline system from the Permian Basin to the Corpus Christi/Ingleside area; will add up to 585K bpd of Permian Basin pipeline takeaway capacity

Financials

  • JPMorgan (JPM) makes investment to support job and local economic growth in U.S. including further boosts wages to $15-$18/hour for 22,000 employees and opening up to 400 new Chase branches; also hiring 4,000 employees in new U.S. markets
  • Synovus (SNV) Q4 adjusted EPS 72c/$339.1M vs. est. 67c/$338.68M; 4Q adjusted non-interest expense $201.1M, Q4 provision for loan losses $8.57M and Q4 net charge-offs $8.98M
  • Fifth Third (FITB) Q4 EPS 52c/ vs. est. 48c; 4Q net interest margin 3.02%, 4Q net charge-offs $76 million, and 4Q provision for loan losses $67 million
  • TD Ameritrade (AMTD) Q1 EPS 80c/$1.3B vs. est. 50c/$1.2B; firm said "off to an outstanding start in 2018, with powerful momentum and financial strength continuing across all core metrics;” raises FY18 adjusted EPS view to $2.55-$3.05 from $2.10-$2.50 (est. $2.62)
  • Zions Bancorp (ZION) Q4 EPS 80c vs. est. 73c; said the efficiency ratio improved materially to 59.8%, and the return on tangible common equity rose to 10.9%, up from 8.4% YoY
  • Brown & Brown (BRO) Q4 EPS 47c/$474.3M vs. est. 42c/$450.33M
  • Wintrust Financial (WTFC) Q4 EPS $1.17/$300.1M vs. est. $1.13/$299.5M; reports Q4 loan loss provision $7.8M vs. $7.4M a year ago
  • Fulton Financial (FULT) Q4 EPS 19c vs. est. 28c; Q4 net interest margin 3.29%
  • ServisFirst (SFBS) Q4 EPS 40c vs. est. 48c; Q4 non-interest income $4.9M down $1.1M or 18% YoY
  • Park National (PRK) Q4 EPS $1.48 vs. est. $1.50; 4Q loans $5.37 billion and NIM 3.40%

Healthcare

  • Johnson & Johnson (JNJ) Q4 EPS $1.74/$20.2B vs. est. $1.72/$20.08B; sees year EPS $8.00-$8.20 on sales $80.6B-$81.4B vs. est. $80.7B
  • ResMed (RMD) shares rose 9%; Q2 EPS $1.00/$601.3M vs. est. 76c/$581.7M; 2Q gross margin was 58.2% vs. 58.3% YoY mainly due to declines in average selling prices
  • Adamas Pharmaceuticals (ADMS) files to sell $85M in common stock
  • Insmed (INSM) files to sell $300M in convertible senior notes due 2025
  • Stemline (STML) files to sell 3.7M shares of common stock
  • Harvard Bioscience (HBIO) to buy Data Sciences Intl for about $70M; also completes sale of its wholly-owned subsidiary Denville Scientific to Thomas Scientific for ~$20M
  • Amgen (AMGN) announced positive results from the Phase 3b LIBERTY study assessing the efficacy and safety of Aimovig™ (erenumab) 140 mg in patients with episodic migraine who had experienced two to four previous preventive treatment failures, due to lack of efficacy or intolerable side effects; study met its primary endpoint

Industrials & Materials

  • Triumph Group (TGI) to provide major structural assemblies for 767 programs; Boeing (BA) and Triumph had signed memorandum of understanding last year to identify new business opportunities in support of Boeing’s businesses
  • Woodward (WWD) reports Q1 EPS 29c on revenue $470M; sees FY18 EPS $3.35-$3.60 on revenue $2.2B-$2.3B vs. est. $3.40/$2.23B
  • Steel Dynamics (STLD) Q4 EPS 54c/$2.34B vs. est. 52c/$2.22B; CEO said remain confident that current and anticipated macroeconomic and market conditions are in place to benefit domestic steel consumption in 2018
  • Graco (GGG) upgraded to Buy from Hold at Deutsche Bank

Technology, Media & Telecom

  • Netflix (NFLX) shares rose 9%; Q4 EPS 41c/$3.29B vs. est. 41c/$3.28B; 4Q domestic streaming net adds 1.98M vs.  est. 1.29M and 4Q international streaming net additions 6.36M well above the est. 5.05M; sees 1Q domestic streaming net additions 1.45M vs. est. 1.28M and 1Q int’l streaming net additions 4.9M vs. est. 3.90M; sees 1Q revs $3.68B vs. est.  $3.49B
  • Adobe (ADBE) raises 2018 adjusted EPS to $6.20 from $5.50 due to the new tax law and also reports it expects 1Q adjusted eps $1.43 and had previously forecast $1.27
  • ShiftPixy (PIXY) Q1 revenue up 14.6% to $6.5M YoY, gross billings grew 14.7% to $40.2M; sees 2Q gross billings $60M-$65M
  • Shaw Communications (SJR) files C$3B mixed securities shelf
  • Sprint (S) downgraded to Underperform from Neutral at Macquarie

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

This article is from the Hammerstone Group and is being posted with the Hammerstone Group's permission. The views expressed in this article are solely those of the author and/or the Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 


16071




Technical Analysis

Technical Analysis (Gold, Dollar, Oil and more) heading into Tuesday's open with Dan Gramza


Dan Gramza takes a look at some key charts heading into Tuesday's open, including gold, oil and the dollar.

This Daily Market Studies are presented by an unaffiliated third party and Interactive Brokers LLC does not create the content of these presentations. You should review the contents of each presentation and make your own judgment as to whether the content is appropriate for you. Interactive Brokers LLC does not provide recommendations or advice. This presentation is not an advertisement or solicitation for new customers. It is intended only as an educational presentation.

This video is from Dan Gramza and is being posted with Dan Gramza’s permission. The views expressed in this video are solely those of the author and/or Dan Gramza and IB is not endorsing or recommending any investment or trading discussed in the video. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


16072




Options

Vol 411: Market Responds to Government Shutdown


CBOETV - Jamie Tyrrell, Group One Trading, discusses Government shutdown, SPX getting closer to all-time high, Vix tumbling down, size ITM Vix trade.

 

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, or at www.theocc.com. The information in this program is provided solely for general education and information purposes. No statement within the program should be construed as a recommendation to buy or sell a security or to provide investment advice. The opinions expressed in this program are solely the opinions of the participants, and do not necessarily reflect the opinions of CBOE or any of its subsidiaries or affiliates. You agree that under no circumstances will CBOE or its affiliates, or their respective directors, officers, trading permit holders, employees, and agents, be liable for any loss or damage caused by your reliance on information obtained from the program.

Copyright © 2016 Chicago Board Options Exchange, Incorporated.   All rights reserved.

This video is from CBOE and is being posted with CBOE’s permission. The views expressed in this article are solely those of the author and/or CBOE and IB is not endorsing or recommending any investment or trading discussed in the article. This material is for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IB to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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