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Afternoon Note

Waiting on the President

By Charles Payne, CEO & Principal Analyst
3/8/2018 2:00 PM
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Another day of ups and downs.  The markets started the day in the green, but other than the Nasdaq, have slipped into negative territory.  Investors await President Trump’s meeting at 3:30 where he will unveil and sign the terms of the aluminum and steel tariffs.  We will also learn which countries might be carved out and under what terms. 

Market breadth is pretty even with decliners outpacing advancers 1456/1422 on the NYSE and 1394/1364 on the Nasdaq.  Consumer Staples and Discretionary, Health Care and Technology are strong, while Energy, Financials, Materials and Telecom are strong.  

Speaking of Health Care, today Cigna (CI) announced that is was acquiring Express Scripts in a deal worth $67 billion in cash and stock.  The deal has been approved by both company’s board of directors, but still will have to pass regulatory and shareholder approval.  ESRX holders will receive $48.75 in cash and 0.2434 shares of the new company, a 33% premium to yesterday’s close.

We owned ESRX on Hotline when the deal was announced. If you are not a subscriber, call your representative or email us at info@wstreet.com to get started today.

Supermarket operator, Kroger (KR), saw its shares plummet today, down 11.30%, after the company reported earnings.  Worries regarding margin pressure coming from its competitors, mainly from Walmart (WMT) and Amazon (AMZN) - Whole Foods Market, seem to be the main concern. 

On the economic front, initial claims for the week ending March 3rd increased by 21,000 to 231,000.  A better gauge, the 4-week moving average, declined by 2,000 to 22,500.  Initial claims have been below 300,000 for 157 consecutive weeks. 

Continuing claims for February 24th declined by 64,000 to 1,870,000 and the 4-week moving average drop by 14,250 to 1,906,750.  So, now all eyes are on the Nonfarm Payroll numbers and Average Hourly Earnings due out tomorrow.  Nonfarm Payrolls are anticipated to come in at 210,000, while Average Hourly Earnings for February are expected to have increased 0.2%.

Charles , thank you again, we are pleased that pres Trump admins has helped steel plants, NONE seem to understand, without Wire, NO transformers or electricity, and China is only source SO IT IS VITAL TO USA MILITARY , we now will have steel wire better quality made In USA AGAIN. Have you bought added to GRA, IMMR, SAIL, NVDA, SPLK? WE added to All, & MORE, PRIDE , Quality of life & prosperity have finally returned to USA WORKERS, after 8yrs of declines..Thank you & All for your help & REPORTS, KEEP it up .

J on 3/8/2018 4:03:23 PM

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