Treasurys: 30-year -0.9%. 10-yr -0.6%. 5-yr -0.4%. 10-yr note stays @ 2.8%.
Commodities: Crude -1.1% to $63.45. Gold -0.9% to $1,324. The American Petroleum Institute (API) reportedly shows -1.05M barrels of crude oil for the week ending Feb. 1 vs. last week's build of +3.23M barrels. Gasoline reportedly shows -227K barrels and distillates show a build of +4.52M barrels. I think refiners face margin challenges.
Yesterday, many analysts called for buying dip instead of being panic. Goldman's David Kostin isn't seeing a specific catalyst for the panicky action in stocks yesterday, but does note the stumble in markets is occurring when a high percentage of companies are in a blackout period for share repurchases. Kostin and team see no change to the fundamentals behind the bull market, and reiterate their year-end S&P 500 target of 2,850.
Credit Suisse says the last day of trading XIV will be 2/20.
WinnersMU +11.4% after the company hiked earnings estimate #. NVDA +5.6%, WDC +3.4%,
GM +5.9% after reporting Q4 EPS of $1.65 beats by $0.27. Revenue of $37.7B (-5.5% Y/Y) beats by $1.15B. GM is better positioned than F for sure.
SWKS +10.4% after reporting ER beats. SWKS is one of Apple's supplier.
TRIP +14.7% continues its rally.
CELG +2.7% after reporting that triplet therapy phase III shows treatment benefit in late-stage multiple myeloma study. IBB +2%, AGN +2% after reporting ER beats.
LosersMolina Healthcare (MOH -5.9%) drops amid perceived risk to South Florida business. It that has been chosen as a candidate to negotiate the 2019 managed care contract for Region 11 of Florida Medicaid program, a contract Molina now holds (valid through year-end 2018) that contributes ~8% of the company's revenues.
WFC -1.5% as the FED punishment headwind continues to hurt, although some analysts say there would be no "material damage to profit". I think it is a buying opportunity.
Earnings AHDisney (DIS +1.4%) Q1 EPS of $1.89 beats by $0.28. Revenue of $15.35B (+3.9% Y/Y) misses by $100M. Revenue by segment: Media Networks, $6.24B (flat); Parks and resorts, $5.15B (+13%); Studio Entertainment, $2.5B (-1%); Consumer Products & Interactive Media, $1.45B (-2%). Operating income by segment: Media Networks, $1.19B (-12%); Parks and Resorts, $1.35B (+21%); Studio Entertainment, $829M (-2%); Consumer Products & Interactive Media, $617M (-4%). Shares +2% in AH.
Gilead Sciences (GILD +2.6%): Q4 EPS of $1.78 beats by $0.11. Revenue of $5.9B (-19.4% Y/Y) beats by $160M. Key product sales (M$): Genvoya: 1,060 (+88.3%); Truvada: 797 (-8.2%); Harvoni: 644 (-60.7%); Epclusa: 565 (-46.1%); Atripla: 440 (-27.5%); Descovy: 365 (+145.0%); Odefsey: 325 (+109.7%). 2018 guidance: Total sales $20-21B. GILD declares $0.57/share quarterly dividend, 9.6% increase from prior $0.52. Forward yield 2.84%. Payable March 29; ex-div March 15. Shares -0.7% in AH.
Snap (SNAP +1.5%): Q4 EPS of -$0.13 beats by $0.03. Revenue of $285.69M (+72.4% Y/Y) beats by $32.74M. User growth also topped expectations, with daily active users +5% from Q3, adding 8.9M users to reach 187M; +18% Y/Y. Cash, equivalents and marketable securities came to $2.04B by year-end; free cash flow for Q4 was -$197.3M vs. a prior-year -$188.1M. Shares +20% in AH.
Chipotle Mexican Grill (CMG +1.3%): Q4 EPS of $1.34 beats by $0.02. Revenue of $1.11B (+7.8% Y/Y) in-line. Shares -2.7% in AH.
Beazer Homes (BZH +1%): Q1 EPS of -$4.08 may not be comparable to consensus of -$0.08. Revenue of $372.5M (+9.8% Y/Y) beats by $7.61M. Shares -3% in AH.
Akamai (AKAM +1.4%): Q4 EPS of $0.69 beats by $0.06. Revenue of $663.45M (+7.7% Y/Y) beats by $14.4M. Shares +7.6% in AH.
NETGEAR (NTGR +2%): Q4 EPS of $0.71 beats by $0.07. Revenue of $397.06M (+7.9% Y/Y) beats by $3.64M. Shares +5% in AH.
My Trades Today
- Initiate position in WFC @ $56.4
- pre-market: HUM, KORS
- post-market: NTES, PRU, TSLA, YELP, YUMC, ZNGA