March 28, 2024

Daily Wrap

DJIA +2.77 (+0.02%) to 14,450.06; S&P 500 -3.74 (-0.24%) to 1,552.48; NASDAQ -10.55 (-0.32%) to 3,242.32

Another day where not much was on the US economic data calendar expect the NFIB small business survey which came in slightly higher than expected but nothing really of note.  As has been a trend lately, the Dow lead all major indices hovering just above or below even for the day and for the most part it was a relatively quiet day.

This is not actually surprising action for where the markets have been.  We are up roughly 9% YTD on the SPY (S&P 500 SPDR ETF) and nearly 11% on the DIA (Dow 30 SPDR ETF).  These quiet drift days can happen when there is not a set catalyst to deter them.  There is a reason why they say the trend is your friend and often when you have a trend in place it takes an overt act or change in sentiment to deter that trend.  When left to its own devices, the market will just drift in the direction of the trend.  This is also the week of option expiration for March and I find that if there is a trend going into OP-EX then that trend will continue to OP-EX (same with holiday’s).

Stock of the day was Cabela’s (CAB) which sells sporting goods and equipment and closed 12.52% higher after being taken down yesterday on DKS’ earnings report.  Feeling the pressure from the market and DKS’ report, CAB came out today providing positive comments regarding the current business and also noted they expect to beat analyst expectations.  Cab recently beat Q4 estimates in mid February so they have a track record of outperforming.  Solid new for Cab which has been a good chart.  This last push makes me wonder if the good times might not now be built in.  There may be a little left in the name but I am leaning toward a short coming pullback/consolidation where we might see better levels for longs.

Two well known names received pops today both on news that executive’s will be leaving, Verifone (PAY) and iRobot (IRBT).  IRBT is losing their CFO while PAY their CEO.  Pay has obviously been saddled with under-performance which is likely driving the move.  IRBT is slightly different in that is has already recovered from a bad gap lower and build more of base with near term support.  I won’t be stepping into either here but PAY was one that was on my personal watch list before to look for a pattern and IRBT could have promise so I will and think it would be worth someone’s attention to keep an eye on these two.

Some names popping today included Glu Mobile (GLUU) which gained nearly 17% after announcing the launch of a real-money gambling game in Britain (maybe something ZNGA is trying to do).  Heckmann Corporation (HEK) which operates in waste water and environmental services  gained 11.59% as they announced a Q4 profit when analysts were expecting a loss.  Losing today’s battle on Wall Street included AVG Technologies (AVG) which fell on a downgrade and Yandex (YNDX) which lost ground after announcing an offering by current shareholders.  YNDX is one I might watch especially if it remains above the 200 Day.  If the shares get placed and the offering gets out of the way it could provide a catalyst for YNDX.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: ADUS, ATRS, BGMD, DSCO, EXPR, GSOL, KOPN, PERI, SNSS

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