January 18, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday lower than expected numbers for China’s December exports stoked investors’ fears over a global slowdown.  Markets opened lower and never recovered with the Dow Industrials losing 86 points. 

On Tuesday the producer price index for December fell .2% and the Empire State manufacturing survey came in at 3.9 compared to its previous level of 11.5.  This was much lower than expectations.  Markets reacted with disappointment when U.K. politicians voted against Brexit plans of U.K. Prime Minister Theresa May, however, markets liked news that China increased stimulus to juice their economy.  The Dow Industrials ended the day 155 points higher. 

On Wednesday import prices for December fell 1%, mostly due to cheaper oil, and export prices fell .6%.  The housing market index for January rose 2 points to 58 which was higher than expectations, and the EIA petroleum status report for the week ending January 11th showed crude oil inventories fell by 2.7 million barrels.  The Fed released their Beige Book for December and January and they described retail sales as growing modestly, which was disappointing for a holiday season.  Wage growth was described as flat.  Markets closed higher, especially financial stocks, on strong earnings by Goldman Sachs. 

On Thursday jobless claims for the week ending January 12th saw claims fall 3,000 to 213,000.  Markets rallied on news that the Trump administration is considering reducing some tariffs on Chinese imports to help calm markets and resolve the trade dispute.  Ten year Treasuries yielded 2.74% and U.S. crude finished at $52.32 a barrel. 

On Friday manufacturing output for December rose a much higher than expected 1.1% and China reportedly offered to dramatically increase imports of U.S. goods. Markets opened very strong on the news.  Now let’s take a look at some stocks.

PG&E Corporation (NYSE: PCG) announced on Monday it will prepare to file for bankruptcy after facing billions of dollars in claims over California wildfires. PG&E shares plummeted by 50% during Monday’s pre-market hours. The company said it intends to file its Chapter 11 legal paperwork this January 29th.

Canopy Growth Corporation (NYSE: CGC) announced on Monday that it was granted a license by New York State to produce and process hemp.  Canopy is planning to invest between $100 and $150 million in its New York operations. Canopy Growth shares jumped by 11% following the announcement.

Snap Inc. (NYSE: SNAP) shares slipped by 7.5% during Tuesday’s pre-market hours after CFO Tim Stone resigned from the company after serving for less than a year.  Along with Stone’s departure, Snap said in the filings that it expects revenue and adjusted EBITDA to be “slightly favorable” to the top end of its previous guidance.

Bank of America Corporation (NYSE: BAC) shares rose by as much as 8% on Wednesday after reporting a record quarterly profit. For the fourth quarter, the bank reported earnings of 73 cents per share on revenue of $22.7 billion. Analysts expected earnings of 63 cents on revenue of $22.4 Billion. The bank’s quarterly profit was $7.3 billion, up 208% year over year.

Netflix, Inc. (NASDAQ: NFLX) reported its fourth quarter financial results that beat subscriber growth and earnings, but missed revenue.  The company reported that it added 8.8 million new paying subscribers in the quarter with earnings per share of 30 cents on revenue of $4.19 billion. Analysts forecasted earnings of 24 cents per share.

11 Comments
  1. Bear for Life 3 months ago
    Reply

    $NFLX looks like it is going to choose between a H&S or a double top next week.

    • Reggie Ortiz 3 months ago
      Reply

      Major indexes and stocks are running into resistance. This area is key to determining whether the rally will continue or reverse. Let’s see how price action develops. $Nflx

    • Jon Vince 3 months ago
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      I think the main concern among $NFLX detractors concerning competition is the cessation of Growth Numbers. No longer will #Netflix enjoy that super multiple that companies get during their growing period. It will start to be considered as “Mature”

  2. Mike Delano 3 months ago
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    $snap So the CFO was allowed to say he “quit” and leave with some dignity even though he was fired for going around the CEO’s back to try and get more money. And the security chief was fired for acting inappropriately a year ago, sounds like Evan Spiegel is acting responsibly.

    • Penelope Calwell 3 months ago
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      $SNAP bankruptcy coming, can’t see how they can maintain as revenue streams are not strong enough

      • Luke Noles 3 months ago
        Reply

        $SNAP is an stock never for a long-term investment, but nice for short-term speculation. Bull divergence pending.

  3. Roger Corales 3 months ago
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    Taking profits on $NFLX short (I survived the IV crush of earnings- can I get a medal? In $6.80 out $7.20 2nd time, $SPY puts, $VXXB calls…only because I need to free up cash and I still have plenty of bearish positions on tap for the continued erasing of the markets fakery.

    • Raymond Acevedo 3 months ago
      Reply

      $NFLX Approaching short term target around $322 – 314 from where it can bounce in 3 waves against $364 peak

  4. Harry Velez 3 months ago
    Reply

    gov’t shutdown still going on, banks and stock investments are not safe imo

  5. Eloy Vela 3 months ago
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    $CGC and $TLRY continue a market cap divergence why. Insiders free to run….short CGC.

    • Aaron Thompson 3 months ago
      Reply

      $CGC – another weed stock starting to form a potential play. T/line triple tapped over the past 3 days. Next one could do well if it makes it through. $44.20 is my key level to take out.

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