Wall Street Strategies
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Morning Commentary

Shrug Gesture

By Charles Payne, CEO & Principal Analyst
11/13/2019 9:32 AM

The Dow Jones Industrial Average finished the session unchanged.  Yes, the Big Board unchanged +0.00% for the first time since April 24, 2014 after seesawing back and forth all session.   The other major equity indices posted gains for the day, but market breadth underscored that indifference like a shrug gesture emoticon.



The session, however, continues to underscore the fact bias has shifted firmly to the upside and even lackluster days can see higher closes.   On that front, earnings season is winding down and it’s been a rousing success.  We get Cisco (CSCO) after the close.  Although it has a $200 billion market cap, the stock doesn't carry the kind of influence it did years ago when former CEO John Chambers would always give the most guarded outlooks.

Its interesting because Chambers used to be the classic Chief Excitement Officer and always talk up results and the company’s prospects.  But a couple sharp hits to the stock turned him from PT Barnum to nervous Nellie.

Tomorrow we get Nvidia (NVDA) and Walmart (WMT).

One stock that stood out yesterday were the shares of Rockwell Automation (ROK).

The company didn’t blow away the street as its $1.73 billion in revenue was up only 1.4% organically and down when factoring in currencies.  The company has been around since 1903 and has an eclectic portfolio of businesses including:

Life sciences, mining and oil & gas were strong during the quarter.  I wouldn’t chase the stock, but the action had me spying oil & gas names closer especially some of my old favorites in the Permian basin.  I love the action in Pioneer Natural Resources (PXD), but we are already down a lot and more has to happen to make the stock more attractive.

Deep-pocketed investors are looking for value and there is a bunch in the oil patch but there have been a lot of false breakouts and reversals so I wouldn’t go nuts here, but these names must be on your radar.

Portfolio Approach

We added a new name in Communications Services so make sure to check with the desk or your representative.

Today’s Session

Futures are in red in sympathy with European and Asian market. Here in the States, investors await Federal Reserve Chairman Jerome Powell testimony. Powell is scheduled to testify before Congress today and tomorrow.

CPI surges more than expected

Core CPI (Excluding Energy and Food)

Inflation increased to 1.8% in October, higher than market expectations of 1.7%.


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