Crude -0.58% to $63.58. Gold +0.41% to $1,332.60.
Amazon (+0.1%) will increase the monthly price of Amazon Prime from $10.99 to $12.99, an 18% increase. Although Wall Street praises such move in early hours, I believe this may turn low-incomers away to Walmart. Share price erased almost all the early gains to finish flat.
Big price moves are mainly affected by earnings and ratings.
WinnersFinancial Sector is strong, RF +2.9%, Q4 EPS of $0.27 beats by 1 cent. Revenue of $1.47B (+5.8% Y/Y) beats by $30M. MS +2.9%, GS +2.1%, C +1.2%, FRC +4.6%.
NVDA +2.5% to finish above $230, after BofA raises its PT to $275 from $251. AMD +1%.
SQ +5.7%, Nomura lifts his PT from $48 to a Street-high $64. I think it is rising too fast.
MOMO +4.3% with strong volume, signal of possible breakout. YY +1.6%.
KSS +4.1%, PT is raised by Jefferies to $100 from $66. M +1.5%, JWN +1.5%.
Lowe's (LOW +3.5%) has gotten a PT hike from BTIG, to $115 from $95. HD +1.5%.
Nike (NKE +4.8%) is off to a strong start after Wedbush upgrades shares to Outperform from Neutral with PT of $74 from $57.
CMG +1.8% after Raymond James upgrades shares to Market Perform from Underperform.
NTES +1% received praise from GS with a Street-high $432 PT.
Caterpillar (CAT +0.9%) PT hiked to $192 at Credit Suisse.
LosersGE -3% is bleeding again after Deutsche Bank analyst John Inch says that GE's current cash squeeze and growing liquidity pressure may force the company to raise equity capital.
IBM -4%, despite ER beat yesterday. FY18 guidance is a little disappointed: Operating EPS flat on the year to “at least $13.80” (consensus: $13.92). FCF expected at about $12B. IBM expects a headwind from cash tax payments to the tune of about $600M year-to-year. Analysts are also concerned about the margin erosion. I am still bullish on IBM as their cloud buniness is growing 22%, overall revenue is finally growing and the company is focusing on innovations. The P/E ratio is relatively low among Tech giants. Dividend and buyback program provides protection to shareholders.
Apple -0.4%, suppliers drop as key analyst (KGI Securities analyst Ming-Chi Kuo) lowers iPhone X lifetime sales forecast from 80M to 62M units. Qorvo (QRVO -3.3%), Cirrus Logic (CRUS -3.7%), Skyworks Solutions (SWKS -3%), Broadcom (AVGO -1.3%), and Lumentum (LITE -5.5%).
AXP (-1.8%) also falls after ER beat amid the suspension of buyback program (due to big tax-purpose writedown).
Zillow (Z -3.2%) receives Hold rating from Stifel with $38 PT.
MU (-2.8%) and WDC (-0.9%) struggle today with average volume.
My Trades TodayAdded more LIT @ $38.1
Sold FRC @ $89.6 to take 4% profit overnight (bought @ $86.2 yesterday)