January 11, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday the ISM non-manufacturing index for December fell 3.1 points to 57.6.  Markets were volatile as investors considered trade issues and the U.S. government shutdown.  U.S. oil advanced 1.5% to $48.66 a barrel and the energy sector rallied.  The Dow Industrials closed 98 points higher, partly on the continued strength of reassurances last week by Federal Reserve Chair Jay Powell that the central bank will remain flexible. 

On Tuesday the JOLTS job openings report for November fell 243,000 to 6.888 million openings.  Officials from both China and the U.S. expressed optimism that a trade agreement can be reached.  Bank stocks struggled due to the possibility of reduced rate hikes from the Fed, however, markets overall rose with the Dow Industrials gaining 256 points. 

On Wednesday the EIA petroleum status report for the week ending January 4th saw crude oil inventory decline 1.7 million barrels.  The Federal Reserve released minutes from their previous meeting and it showed some of the members didn’t want to raise interest rates at all due to lack of sufficient inflation pressure.  All of them expressed caution for future rate hikes, stating they can “afford to be patient”.   A meeting between President Trump and Democratic leadership ended with President Trump tweeting it was a total waste of time.  U.S. crude rose 5% to $52.28 a barrel and the Dow Industrials closed 91 points higher. 

On Thursday jobless claims for the week ending January 5th fell 17,000 to 216,000.  Macy’s reported disappointing holiday sales, putting pressure on the retail sector, and American Airlines lowered its revenue growth forecast putting pressure on airlines.  Nevertheless, broader markets continued to rally with the Dow Industrials rising for its fifth straight day to close 122 points higher. 

On Friday the consumer price index for December declined .1%, its first drop in nine months mostly due to lower energy costs.  Markets were down at the open over concerns about a slowdown in growth in China as well as the prospect of a prolonged government shutdown.   Now let’s take a look at some stocks.

Roku Inc. (NASDAQ: ROKU) shares skyrocketed by more than 23% on Monday after releasing preliminary numbers showing streaming hours grew by 68% to 7.3 billion hours and active user accounts were 27 million.  Roku’s strong fourth quarter now brings its fiscal 2018 streaming hours up to 24 billion, increasing 61% year over year.

The Boeing Company (NYSE: BA) reported delivering a record number of aircraft in 2018. For the fourth quarter, Boeing delivered 238 commercial airplanes, bringing 2018 totals to 806. However, Boeing previously forecast full-year deliveries of 810 to 815 but suppliers have caused shipment delays. Boeing’s stock rose by 3.2% following the announcement.

Constellation Brands, Inc. (NYSE: STZ) reported its third quarter results on Wednesday and topped analysts’ estimates. However, shares plunged due to weaker sales in its wine and spirits segment as well as its investment in Canopy Growth backfiring. Constellation earned $2.37 per share on revenue of $1.97 billion.   Constellation also said its investment in Canopy will slash 25 cents off its full-year earnings per share outlook.

Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced its third quarter results on Wednesday and topped analysts’ earnings estimates, which sent shares soaring by 20%. The company reported earnings per share of 18 cents on revenue of $3.03 billion.  Bed Bath & Beyond previously forecast declining profits and earnings, however, the company said it is now ahead and projects its fiscal 2019 earnings per share to remain flat year over year.

Macy’s Inc. (NYSE: M) shares crated by 19% on Thursday after the company reported disappointing sales results for the combined months of November and December and cut its 2018 earnings outlook. For the two months, Macy’s reported comparable sales were up 1.1%. Due to the weaker-than-expected holiday sales, Macy’s revised its forecast for fiscal 2018, now expecting net sales to remain flat compared to its previous projection of a 0.3% to 0.7% increase. The retailer forecast diluted earnings per share of $3.95 to $4.00 compared to its previous outlook of $4.10 to $4.30.

  1. Bill Watkins 9 months ago

    What the hell is going on with $BBBY, the company has horrible financials and it’s rising like a penny stock

    • Melanie L. 9 months ago

      $BBBY fell below low of the day. I think we can close at 14 bucks today.

  2. Paul R. 9 months ago

    Its so obvious when the market makers target your positions!! $roku stock market criminals.

    • Nathan Michaud 9 months ago

      $ROKU is doing what a winning stock should . It has held the 5ema on pull backs, there’s a lot strength in that stock. Love that gap down on the downgrade and then it rips up, just keep throwing out retailers share to the institutions

      • Shani Monroe 9 months ago

        $roku trades like yo-yo. Above $40 now even after downgrade today.

  3. Jeff Aria 9 months ago

    the trade war + slowing economy has already impacted corporate growth and proof is coming – and we will see that this earnings season. If I’m wrong, I’ll be happy – but $AAPL, $DAL, $M and Samsung have foreshadowed this impact

  4. Mark Hruska 9 months ago

    $BA 345 after hours low, almost 10 points off short entry. Below 343, i would expect a nose dive below to 330’s. Keep in mind the downside gaps to fill after hitting major trendline resistance and just skimming 61.8% resistance

  5. Elizabeth Trents 9 months ago

    $stz $162, $166 (key) can be a goog short entry..

  6. Mark Edward Lewis 9 months ago

    Rolled my $M puts up into a straddle – on the wrong day. Then just rolled it into March for a $1.62 profit. #hindsight #cutthewinnersrunwiththeloosers

    • William Velmer 9 months ago

      $M looks like it’ll hit $27.00 this week… base is setting up well.

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