The money floods into Treasuries: 30-year +1.12%. 10-yr +0.74%. 5-yr +0.51%. 10-yr note drops from above 2.85% to 2.7% (about last Tuesday/Wednesday level). This may calm some nerve.
Currently it is hard to predict how much lower indices will go. I would suggest to prepare your own shopping list and start to add positions. I am fully positioned myself. I plan to hold and wait.
Commodities: Crude -2.73% to $63.66. Gold +0.28% to $1,341.00.
Bitcoin is also facing another run of selloff as major US & UK banks ban Bitcoin credit card purchases. The lowest price today is below $6600 from coindesk.
To be honest, there is no particular bad economic news today. Instead, we have some good earnings and M&A.
Broadcom (AVGO -3.1%) plans to raise its takeover offer for Qualcomm (QCOM -6.6%) to ~$120B. The new offer would value QCOM at $82/share, according to the Reuters report, up from the previous $70/share bid. However, the market has doubts on this acquisition to go through. Moreover, Morgan Stanley (MS -5.3%) issues a note that downgraded the semiconductor sector and says chip stocks are at risk from poor iPhone sales and rising inventory levels. However, ON Semiconductor (ON -4.4%) reported Q4 beats, upside guidance (Q1 Revenue $1.34-1.39B vs consensus $1.34B) this morning.
WinnersCHD +2.4% after reporting Q4 EPS of $0.52 beats by $0.02. Revenue of $1.03B (+15.0% Y/Y) beats by $30M.
TRIP +3.7%; EL -0.1% --- flat today is already considered great performance.
Losers (too many...)WFC -9.2% is punished by FED.
NVDA -8.5% dips, close to $200 support level. AMD -7.1%. This is maybe caused by the selloff in cryptocurrencies.
Big pharma gave up all the gains this year, along with the market, despite the great earnings from BMY (-4%) this morning. IBB -4.4%, and another -1% in AH. CELG -6.1%
Lululemon (LULU -1.5%) announces that CEO Laurent Potdevin has resigned from the company after falling short of the standards of conduct expected by all employees. Shares -3% in AH.
Earnings in AHMTGE Investment (MTGE): Q4 EPS of $0.52 beats by $0.03. Book value $20.75 up from $20.61 three months earlier. Today's close of $16.40 is a 21% discount to Dec. 31 book. Shares +0.3%.
Cirrus Logic (CRUS): Q3 EPS of $1.59 misses by $0.19. Revenue of $482.74M (-7.7% Y/Y) misses by $46.63M. Shares -10.7% in AH.
Skyworks Solutions (SWKS): Q1 EPS of $2.00 beats by $0.09. Revenue of $1.05B (+14.8% Y/Y) in-line. Shares +1.5% in AH.
My Trades Today
- Sold BIVV @ $104 (acquisition price is $105).
- Sold 20% AAPL @ $163.6.
- Added more CELG, it reached 10% in my portfolio as over-weight now, no more shares.
- pre-market: BP, EMR, GM, GPK
- post-market: BZH, CMG, DIS, GILD, NTGR, PAYC, SNAP, ZEN