September 18, 2019

Daily Wrap

DJIA -23.66 (-0.17%) to 13,511.23; S&P 500 +0.29 (+0.02%) to 1,472.63; NASDAQ +6.76 (+0.22%) to 3,117.54

Again we have another day where the markets were somewhat mixed but overall were overall boring.  Opening roughly 4 points lower the S&P rallied to close slightly positive.  Today we had the Fed Beige Book but obviously there was nothing ground breaking to the markets and now focus will switch to tomorrow’s jobs data.  Last week saw a slight uptick in claims to 371K and this week’s expectation is roughly the same at 369K.

Boeing (BA) closed down over 3% today and the news does not look promising.  Following a second incident with an emergency landing in Japan, The Federal Aviation Administration said late Wednesday it was grounding all of Boeing’s U.S.-registered 787 Dreamliners pending checks on whether their batteries are safe.

Goldman Sachs (GS) gaped higher today and after an intraday pullback closed very strong up 4%.  GS reported earnings along with other financial companies yesterday after the close and GS crushed earnings estimates on both revenues and earnings.  On the negative side I saw a note from Wells Fargo stating that concerns over if GS can sustain this type of performance will likely hinder longer term enthusiasm.  Another analyst comment today was CLSA which already has a Buy rating on GS but raised their target from $157 to $176.  GS may very well be going to and above $170 but GS provided a great base to trade off back toward the year and around $117 but now over $140 Goldman is up over 20% in a short period and waiting for a better entry would likely be more prudent.

Another financial reporting earnings last night was JP Morgan (JPM).  JPM beat bottom line EPS but slightly missed on revenues. Along with their earnings JPM also released a report detailing the “London Whale” losses.  What I also found interesting was the company also noted how Jamie Dimon’s compensation was cut after the scandal.  I didn’t see details on how much but I will look.  I think this is likely the start of companies trying to have some form of claw back on CEOs resulting from events happening under their reign and while I imagine the cut was small, it is not without notice and I think many will welcome the sentiment.

Yesterday we had a few retailers of note and today we have another to add to the mix, Christopher & Banks (CBK).  After reporting same-store sales up 14%, CBK gained over 13%.  On this last pop, CBK has some negative MACD divergence and I would personally wait on this name.  There are many promising charts out there and I don’t think you need to chase but we also have to acknowledge that something positive might be happening with CBK and it should be a name we watch going forward.

As always you can visit the Event’s Calendar for the release of economic data, scheduled meetings and other news that could move the market.

According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: FITB, BAC, APH, BBT, BLK, C, HBAN, PNC, UNH, FAST

No charts tonight but not much has changed.  This was another small move consolidation day.  We started 4 points lower but every dip is currently being bought up.  I would still refer a deep orderly consolidation to provide a small shake up for the very weak longs and then turn right up but I may not get what I want.  One last note and I will post charts tomorrow is Apple Computers (AAPL).  While it is possible that AAPL has bottomed with a drop under the $500 level potentially stopping the people who use round numbers out and now back above but I could also see AAPL bottoming as more of a process than a spike.  Also realizing they have earnings next week can throw a wrench into the technicals.

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