On Monday, the violent gyrations continue as the Dow Jones Industrial Average rallied 350 points, then stumbled 550 points before finishing down 247 points on the session. The trading range covered so much ground with a swath of destruction like a Category 4 Hurricane.

The eye of the storm is Amazon (AMZN), which at times single-handedly rallied the market higher last year and earlier this year. The stock closed down more than $100 points yesterday.

Investor Sentiment is also crashing, although not at the low of the year yet. Bearishness is at the point where it could be signaling a buy.

There are a lot more earnings and economic data to digest from yesterday.

Portfolio Balance Changes

20 equally-weighted positions

I am loving the action in the retail space; we are increasing Consumer Discretionary to 3 position weighing.   Currently, open Consumer Discretionary/Retail ideas include:

• (BURL): Burlington Stores
• (PLCE): Children’s Place
• (TGT): Target
• (ULTA): Ulta Beauty
• (LULU): Lululemon Athletica​

In Communications Services, we are reiterating a buy on the Interpublic Group of Companies (IPG).

Communication Services	Consumer Discretionary	Consumer Staples	Energy	Financials	Health Care
2	3	1	1	1	1
Industrials	Materials	Real Estate	Technology	Utilities	Cash
2	4	0	2	0	3

If you are not currently on the Hotline service, call your account representative, or email us at Info@wstreet.com to get started today.  To take a trial to our Hotline, click here.

On Monday, the violent gyrations continue as the Dow Jones Industrial Average rallied 350 points, then stumbled 550 points before finishing down 247 points on the session. The trading range covered so much ground with a swath of destruction like a Category 4 Hurricane.

The eye of the storm is Amazon (AMZN), which at times single-handedly rallied the market higher last year and earlier this year. The stock closed down more than $100 points yesterday.

Investor Sentiment is also crashing, although not at the low of the year yet. Bearishness is at the point where it could be signaling a buy.

There are a lot more earnings and economic data to digest from yesterday.

Portfolio Balance Changes

20 equally-weighted positions

I am loving the action in the retail space; we are increasing Consumer Discretionary to 3 position weighing.   Currently, open Consumer Discretionary/Retail ideas include:

• (BURL): Burlington Stores
• (PLCE): Children’s Place
• (TGT): Target
• (ULTA): Ulta Beauty
• (LULU): Lululemon Athletica​

In Communications Services, we are reiterating a buy on the Interpublic Group of Companies (IPG).

Communication Services	Consumer Discretionary	Consumer Staples	Energy	Financials	Health Care
2	3	1	1	1	1
Industrials	Materials	Real Estate	Technology	Utilities	Cash
2	4	0	2	0	3

Today’s Session

Earnings Beats

MasterCard (MA)

• $3.9 billion
• $1.82 eps
• Global Volume (billion USD)
• APMEA 447 +9.7%
• Canada 44 +5.8%
• Europe 437 +10.4%
• Latin America 99 +2.2%
• USA 442 +8.7%

1. Debit 229 +9.5%
2. Credit 213 +9.7%

Cummins Engine (CMI)

• $5.94 billion
• $4.28 eps from $2.71 y/y
• Overall growth driven by strong demand in the United States as engine units soared to 187,400.

Sector Growth	Engine	Distribution	Components	Power
North America	+18%	+12%	+25%	+7%
International	+14%	+6%	+2%	+3%

Earning stocks which are higher:

• Under Armor (UA)
• Akamai (AKAM)

Earnings stocks which are lower:

Pfizer (PFE)

General Electric (GE)

Alive and Kicking: Video Games still crushing

Take Two subsidy Rockstar Games has another winner on its hands, which is just in time and overshadows the news of employees working for days without rest or even leaving the premise.  The result is another grand slam.

Press Release

Rockstar Games® is proud to announce that the critically acclaimed Red Dead Redemption 2 has achieved the single-biggest opening weekend in the history of entertainment*. With over $725 million in worldwide retail sell-through during its first three days, Red Dead Redemption 2 is the second-highest grossing entertainment launch of all time next to Rockstar Games’ previously released title, Grand Theft Auto V, which achieved over $1 billion in retail sell-through in three days. *

 

1. Avengers: Infinity War    2018      $640,521,291

2. The Fate of the Furious   2017      $541,937,239

3. Star Wars: The Force Awakens    2015      $528,966,675

4. Jurassic World    2015      $524,909,010

5. Harry Potter and the Deathly Hallows – Part 2     2011      $483,189,427

6. Star Wars: The Last Jedi 2017      $450,821,889

Tip-toeing

Earnings have been better this morning with the vast majority of companies reporting beating on the top and bottom line and providing solid guidance.  But investors are spooked, which I think is the last emotion before scared as hell.  If this were September, Dow pre-open futures would be significantly higher.

Comments

Is it the 'Eye of the storm' or more like 'Ground zero'? Andrew B Newallo on 10/30/2018 10:28:13 AM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.