All the major indices were higher yesterday, with the NASDAQ Composite and Russell 2000 enjoying the largest gain. The market breadth was the best it’s been in some time with three times the up volume than down volume on the NYSE and the NASDAQ.

Although 2,262 advancers dwarfed, and there were 881 decliners, there are more new lows than new highs (72 to 66) on the NASDAQ.

Strong Medicine

It turns out strong earnings is the magic elixir it has always been going back to the beginning of the stock market. That medicine made Health Care the top-performing sector yesterday, powered by earnings results from Johnson & Johnson (JNJ) and United Health (UNH).

S&P 500 Index	+1.00%
Communication Services (XLC)	+1.71%
Consumer Discretionary (XLY)	+0.88%
Consumer Staples (XLP)		-0.43%
Energy (XLE)	+0.41%
Financials (XLF)	+1.44%
Health Care (XLV)	+1.82%
Industrials (XLI)	+0.81%
Materials (XLB)	+0.70%
Real Estate (XLRE)	+0.08%
Technology (XLK)	+1.10%
Utilities (XLU)		-0.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Health Care could get a nice boost today after reports surfaced last night that sent shares of drug distributors surging in after-hours trading:

• McKesson (MCK): +7.1%
• AmerisourceBergen (ABC): +7.5%
• Cardinal Health (CAH): +4.9%

Apparently, an agreement is close to settling lawsuits brought by state and local governments accused of fueling the opioid epidemic. The stocks popped because this would mean closure, but it’s also because the reported terms of $18 billion paid out over 18 years isn’t a major hit to their bank accounts.  Note: there is also talk Johnson & Johnson could be a part of this settlement.

The Health Care sector has been dogged by political pressure and stodgy drug pipelines at major companies, but underlying stocks could rally by clearing two hurdles.

• 92.5 & 94.5

XLV

Consumers Sleeping like Babies & Flying the Friendly Skies

After the close, Sleep Number posted record revenue and earnings that beat the street.

• Revenue: $475 million (consensus $462 million)
• Earnings: $0.94 (consensus $0.79)
• Comp-store sales: +10%

United Airlines (UAL) posted strong results and raised guidance from the prior range. 

Portfolio Approach

Communication Services	Consumer Discretionary	Consumer Staples
1	3	2
Energy	Financials	Healthcare
1	2	2
Industrial	Materials	Real Estate
3	2	1
Technology	Utilities	Cash
3	0	0

Today's Session

This morning we got the September Retail sales report and while the numbers were some what disappointing, the prior month was revised much higher, which skews these results as the estimates are based on old data.

• Headline revised to +0.6 from +0.4%
• Ex auto revised to +0.2 from +0.0%
• Ex auto and gas revised to +0.4% from +0.1%

September 2019	M/M	Y/Y
Headline	-0.3%	+4.1%
Ex-Motor	-0.1%	+3.7%
Motor	-0.9%	+5.6%
Furniture	+0.6%	+1.1%
Electronics	+0.0%	-1.9%
Building Materials	-1.0%	+0.7%
Grocery	-0.1%	+4.0%
Health and Personal Care	+0.6%	+2.9%
Gasoline	-0.7%	-2.7%
Clothing	+1.3%	+1.5%
Sporting Goods	-0.1%	+1.5%
Department Stores	-1.4%	-6.1%
Internet	-0.3%	+12.9%
Restaurants	+0.2%	+4.9%

The major indices were already lower before the retail sales reports, and have moved a bit further down. 

Comments

Thin Lizzy JEB on 10/16/2019 9:43:51 AM

1. Motorhead 2. Judas Priest 3. Thin Lizzy 4. Notorious BIG 5. Sound Garden christopher voccola on 10/16/2019 10:33:46 AM

Poll: Doobie Brothers, Kraftwerk, Depeche Mode, Todd Rundgren, Whitney Houston Mason C on 10/16/2019 10:39:49 AM

I'd have to say Elizabeth Warren, Kamala Harris, Beto O'Rourke. Bernie Sanders and Plugs(Joe Biden). Robert Clanton on 10/16/2019 10:47:50 AM

Pretty solid list... and a nice break from BREAKING economic/political news out of Democratic Washington. Saw Dave Matthews play at Piedmont Park in Atlanta in 2006 with Gregg Allman. I was in tenth grade and remember the vastness of the crowd. 70,000 dope heads grooving to some really good music. Grew up in ATL, the true home of hip hop :) and I would have to put B.I.G on the list at no. 1. He changed the game. Still listen to his vinyl's today. I'm surprised Outkast wasn't on the ballot at the same time as B.I.G... "The South Got Sum' to Say!!" Blake Fortune on 10/16/2019 11:04:18 AM

The Doobie Brothers / Judas Priest / Motorhead / T. Rex / Thin Lizzy / Todd Rundgren. Oh, was that six. Rock and Roll has always been about breaking the rules. STEPHEN RYBACKI on 10/16/2019 12:30:52 PM

I love the oldies! Patricia Margeson on 10/16/2019 12:36:36 PM

Pat Benetar...Doobie Brothers....Judas Priest....Depeche Mode....Dave Matthews Band (only because you asked for 5) Whitney, Chaka and B.I.G. are Hardly Rock n Roll T Rex...Todd Rudgren and Thin Lizzy are too thin. Very small catalog of airplay although some very iconic songs to be sure. Ron Layton on 10/16/2019 3:10:18 PM

Whitney Houston & Pat Benetar Valerie Kilbourne on 10/16/2019 5:44:03 PM

The Doobie Brothers Marsha Johnson on 10/16/2019 8:48:17 PM

Todd Rudgren, Dobbie brothers, Pat Benetar, Dave Matthews band, chaka khun Mary Ellis on 10/19/2019 1:05:49 PM

Doobie Bros!! Allen Young on 10/21/2019 1:20:50 AM

If you are asking me, I would only choose one: Whitney Houston, Most of the rest are weak, wanta be's Gerald John on 10/23/2019 10:45:11 AM

Whitney Houston / The Doobie Brothers / Dave Matthews Band / Pat Benetar / Todd Rundgren Rob Girardi on 10/29/2019 2:02:45 PM

Pat Benatar, Dave Matthews Band, The Doobie Brothers, Todd Rundgren, Whitney Houston Steve Grubor on 11/2/2019 8:07:55 AM

This list is a slam dunk.  CP Charles Payne on 11/2/2019 9:31:29 AM

Depeche Mode and NIN Al Berg on 11/3/2019 10:21:11 AM

Nine Inch Nails. Charles let's talk Bitcoin & Ether Gregory Pitchure on 11/13/2019 9:37:33 AM

Nine Inch Nails The Notorious B.I.G. Judas Priest Dave Matthews Band Soundgarden Rajesh Kaitha on 11/14/2019 10:12:58 AM

Pat Benatar Dave Matthews Band Doobie Brothers T. Rex Depeche Mode Phil on 11/22/2019 5:25:22 PM

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