Ahhh, markets reach new highs today on the heels of President Trump’s executive decisions yesterday. Today, I will be looking to add to my short positions in The S&P’s, Nasdaq, and Russell 2000. I have sold some puts against my short positions too. Remember, it is vital to stay mechanical and reduce cost basis where possible.
I’m also managing some of my winning trades in TLT. Tune back in tomorrow as I recap some of the other trades I place on this memorable trading day.
Stay healthy Grassrooters!
1/25/2017 From Tradewise
The Trump presidency provided more fuel for equities yesterday as the White House ramps up growth rhetoric. U.S. stocks closed sharply higher on Tuesday as the benchmark S&P 500 Index (SPX) settled at all-time highs and saw another intraday record. The tech heavy Nasdaq (QQQ) also traded and settled at a record close while the Dow (DIA) and small caps (IWM) rose and played catch-up to the overall market. This morning, equity futures (/ES) are higher, indicating the market may make another assault on Dow 20,000. The market had been down in six of the past seven sessions but yesterday got back to its winning ways and looks ready to continue that rally. In addition to the earnings reports scheduled for release, the economic calendar will have reports on housing and oil inventories.
Treasuries are slightly lower and helping stocks reach another all-time high. Yields have dipped from overnight peaks but the 10-year note is higher at 2.48%. A weaker Yen helped propel Japan’s Nikkei 1.43% higher, while a firmer British Pound weighed on the FTSE 100 and limited the advance. While German consumer data was a little weaker than expected, it’s still at a high level and French production unexpectedly improved, supporting hopes for economic growth. Oil (/CL) have slipped as a build in inventories after yesterday’s close reflected more production from domestic shale drillers. The U.S. calendar is light but the Treasury sells $34 B in 5-year notes and the MBA reported mortgage applications rose 4.0% in the week ended January 20.
Boeing (BA) – Flying High! – The aircraft-maker posted better than expected earnings this morning as both top-line revenue and EPS beat expectations. The company sees 760 deliveries in 2017 but did guide revenue slightly lower in 2017. The lower guidance is not hurting the stock as the shares are up over 1% ahead of the opening bell.
Abbot Labs (ABT) – Earnings – The pharma company posted quarterly results that were in line with expectations this morning. The company reaffirmed guidance and the shares are basically flat ahead of the Wall St open.
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications – up 4%
9:00 am CT – FHFA House Price Index
9:30 am CT – Oil Inventories
12:00 pm CT – 5-Year Note Auction results
Wednesday – 1/25:
Before Market: ABT, BA, EAT, FCX, HES, ITW, MKC, NSC, NVS, PGR, STT, TXT, UTX, VRTS
After Market: T, CTXS, EBAY, FFIV, LVS, MCK, MUR, QCOM, TER, VRTX, XLNX
Thursday – 1/26:
Before Market: ADS, BHI, BIIB, BX, BMY, BC, CAT, CELG, CMCSA, DOW, F, JBLU, NOC, POT, PHM, RTN, SHW, UL
After Market: ETFC, GOOG, INTC, JNPR, KLAC, MSFT, PYPL, SBUX, VMW