May 24, 2019 Weekly Wrap up LIVE from the floor of the NYSE

On Monday, fallout continued from last week when the U.S. government blacklisted the large Chinese telecom provider, Huawei Technologies.  U.S. companies, especially tech, scrambled to implement new restrictions and to stop doing business with Huawei.  The Nasdaq Composite fell over 1.4%. 

On Tuesday existing home sales for April fell .4% to an annualized 5.19 million units.  The Commerce Department said it would allow American vendors to do business with Huawei for purposes of maintaining existing networks.  The exemption lasts 3 months.  Markets were encouraged by the news and the Dow Industrials closed almost 200 points higher. 

On Wednesday the EIA petroleum status report for the week ending May 17th saw crude oil inventory increase 4.7 million barrels.  The Federal Reserve released minutes from its last meeting and it revealed that many FOMC members agreed that the recent dip in inflation may be transitory.  Hence, members continue to stress the word “patience”.  They are willing to continue waiting for more clear evidence of a change in economic conditions before adjusting monetary policy.  Markets fell on continuing worries over trade issues, as it was rumored that the Trump administration is preparing to blacklist additional Chinese companies. 

On Thursday jobless claims for the week ending May 18th fell 1,000 to 211,000 and new home sales for the month of April fell 6.9% to an annualized 673,000 units.  Ten year Treasuries yielded 2.31%, and West Texas Intermediate crude fell to $58.13 a barrel.  The Dow Industrials finished 286 points lower as China toughened its rhetoric against the U.S. with regards to trade negotiations. 

On Friday durable goods orders for April fell 2.1% on top of the prior month’s 1.7% decline.   Markets opened modestly higher as President Trump told reporters that he expected the trade war with China to end soon.  Now let’s take a look at some stocks.

Sprint Corporation (NYSE: S) saw its shares surge by 22% Monday morning after Federal Communications Commission Chairman Aji Pai recommended the merger between Sprint and T-Mobile (NASDAQ: TMUS).  Pai thinks $26.5 billion merger would greatly accelerate the development and deployment of 5G technology in the U.S. However, both the FCC and the Justice Department’s approval are needed in order for the merger to close and it was reported on Wednesday that the Justice Department antitrust division staff has recommended that the agency file a lawsuit to block the merger.

Kohl’s Corporation (NYSE: KSS) reported its quarterly results before market open on Tuesday. The retailer missed earnings estimates and slashed its guidance, causing shares to plunge by 12% shortly after the opening bell. For the quarter, Kohl’s reported earnings of $0.61 per share on revenue of $4.1 billion.

Qualcomm Inc. (NASDAQ: QCOM) shares tanked over 11% on Monday morning after a federal judge ruled that the company had violated antitrust laws. U.S. District Court Judge Lucy Koh noted that Qualcomm was using unlawful practices to license patents for modems used in mobile phones. As a result, Koh ruled that Qualcomm must license its patents to rival chipmakers at a fair and reasonable price and the company must submit to monitoring for the next seven years to ensure it abides by the rulings.

Target Corporation (NYSE: TGT) reported its first quarter results before market open on Wednesday, earning $1.53 per share on revenue of $17.6 billion. Target’s stronger-than-expected quarter was primarily due to increased comparable sales both in-store and digitally with same-store sales growing 4.8% on traffic growth of 4.3%.  Shares shot up over 9% on the news.

L Brands, Inc. (NYSE: LB) shares spiked by almost 15% on Thursday morning after the company reported better-than-expected results. L Brands, owner of Victoria’s Secret, came in with earnings of $0.14 per share on revenue of $2.6 billion. Its Bath & Bodyworks segment saw comparable store sales increase by 13%, however, Victoria’s Secret’s comparable store sales fell by 5%.

7 Comments
  1. Marcus Graham 1 month ago
    Reply

    $QCOM is 5G. They all need its chipset. Patience with this. Good position here.

    • Howard Lee 4 weeks ago
      Reply

      $QCOM added more puts. QCOM gets destroyed in a Trade War and now the FTC! Should head back to $50 or Lower imo!

    • David Moadel 4 weeks ago
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      $QCOM calls and puts into close today. Made $110 on $ROKU puts, sold too early though. Waiting for market structure to break before I get into puts for a bigger position.

  2. Leon Fitzgerald 1 month ago
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    #sprint up 3.0% = $756 million gain. $S has made notable gains in 6 of the last 8 trading sessions, 4 days consecutively from May 15-20.

  3. Jennifer Ng 4 weeks ago
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    $TGT, chart filled up last Fridayand formed marabozu candle on daily, look for a push in the morning over 81.70 to 82.50, 83.30, could also reenter at 81.70 break with 81.70 as SL as well

  4. Andy Smith 4 weeks ago
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    Let’s see if this can pop that $25.00 level in the AMs $LB

  5. Patel M. 4 weeks ago
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    Long $QCOM June 21 @$3

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