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Market Commentary

Rocket Ship

By Charles Payne, CEO & Principal Analyst
2/4/2019 12:36 PM
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Although the session feels quiet, there is lots of compelling action.  Marijuana stocks continue their blistering 2019, and two stocks share stock of the day status.

Ultimate Software (ULTI) is the biggest winner after management agreed to an $11.0 billion cash sale of the company.  The stock has been a rocket ship even with periodic freefall pullbacks.  Not only are shareholders raking in the dough, but so too are employees.  The company, which prides itself on being
“People First,” provides stock when employees join the business.

So, today, as many as 1,650 employees became millionaires.

The shares are up 24,500% since the October 2008 low point.

ULTI

Strong USA Presence

The other stock of the day is Clorox (CLX), which posted earnings of $1.40, beating consensus by $0.10.  This is the latest example of the American economy lifting American businesses.

Interestingly, technology is leading the way led by Adobe (ADBE) and oversold names like Nvidia (NVDA) and Microsoft (MSFT).

S&P 500 Index

+0.17%

Communication Services (XLC)

+0.54%

Consumer Discretionary (XLY)

+0.38%

Consumer Staples (XLP)

+0.32%

Energy (XLE)

-0.59%

Financials (XLF)

+0.04%

Health Care (XLV)

-0.82%

Industrials (XLI)

+0.35%

Materials (XLB)

-0.52%

Real Estate (XLRE)

-0.26%

Technology (XLK)

+1.21%

Utilities (XLU)

-0.33%

 

The street is waiting for Google-Alphabet (GOOG-GOOGL) to report after the close.   It’s going to be a nail-biter, as the company has missed consensus in two of the last three quarters.

Earnings History

12/30/2017

3/30/2018

6/29/2018

9/29/2018

EPS Est.

9.96

9.32

9.54

10.4

EPS Actual

9.7

13.33

4.54

13.06

Surprise %

-2.60%

43.00%

-52.40%

25.60%

I will say the GOOG chart looks great, and it suggest the stock is in the midst of a major breakout that could become a rocket ship if there is a beat coupled with better-than-expected guidance.

 

 

 

 

 

 


Comments
Now that the Fed has taken its hands of the steering wheel the stock market is truly looking like it is self-governing...

Andrew B Newallo on 2/5/2019 7:31:38 AM
 

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