Each market day we are filtering out the firehose of information that Wall Street is throwing at us, and you can’t help but notice the pattern that positive analyst calls are working amazingly well.
Even buying the stocks in focus at the open has been a great way to a profitable day for those interested in short-term profits. It won’t always stay this way, but we’re in one of biggest bull runs in history and who knows how much we have left. First Solar (FSLR), Amazon (AMZN), and Domino’s (DPZ) are just some of the numerous examples that have been working. Amazon (AMZN) ran up nearly $17 from its opening print following this price target bump. First Solar (FSLR) was up $6 from where the stock opened and we highlighted it in the pre-market for its positive analyst mention. Domino’s (DPZ) caught positive commentary fire as well and the stock boomeranged right back up.
We heard Delta Airlines (DAL) reference the tax cuts bill as a reason for the company’s optimistic guidance and FY18 EPS bump. Our sense is this will be a steady theme throughout this earnings season when we hear how well companies performed in Q4.
Walmart (WMT) pulled a cute one yesterday, first talking about raises, expanded maternity and parental leave benefits, as well as one-time bonuses of $1000. Then it out an announcement the company was in the process of shutting 63 Sam’s Club stores. Suddenly the music in the employees’ lounge must have stopped when that headline broke. I’ll give the company the benefit of the doubt that they employ a ton of folks (2 million plus globally) so I understand pencils need to be sharpened, and the economics of such a large workforce isn’t easy to operate.
Some interesting nuggets from yesterday’s tape:
Priceline (PCLN) – what has gotten into Priceline in 2018, up 9% for a stock that trades near $1900 a share is pretty impressive. Market cap is near $100B so not sure a takeover story is necessarily the reason for the pop, but worth watching.
United Rentals (URI) – stock has been a huge winner since the Presidential election as it’s one of the infrastructure go-to plays for its equipment rental aspect and how much the company can benefit from a major infrastructure spend.
Boeing (BA) – okay cyclical stock buyers, breathe! Insane run for Boeing just as 2017 was bananas!
AutoZone (AZO), O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP) – the 3-headed auto parts retail dragon was literally dead last summer, but along with much of retail, these basket of car-retail names has been in beast mode since. Not exactly sure what the specific catalyst has been as the catalyst for the names diving was worries over Amazon (AMZN) competition, so not thinking that will go away anytime soon.
Eastman Kodak (KODK) – cryptocurrency play in the midst of a round trip back down to lower levels based on last session and a half’s performance ($13 down to $8)
Netflix (NFLX) – positive commentary continues to flow for the FANG superstar, up 13% in 2018 already! One analyst said only Disney (DIS) stands in the company’s way to being the biggest media play in the universe.
Intuitive Surgical (ISRG) and Illumina (ILMN) – both companies pulled back some after recently spiking higher on improved guidance. Worth keeping an eye on these names if they pull back more as that would allow for better entry points.
Delta Airlines (DAL), American Airlines (AAL), Southwest Airlines (LUV) – Wall Street feeling bullish on the airline group despite oil prices which continue to creep higher on a daily basis. We’ll see how long the love-fest will continue.
Kraft Heinz Co. (KHC), Kimberly Clark (KMB), Clorox (CLX) – consumer names is where rising costs of commodities is starting to make Wall Street a bit more concerned. These defensive names may see more pressure if the trend continues.
This morning’s early nuggets:
Blackrock (BLK) – solid earnings beat and dividend raise have share up nearly $10 in the pre-market.
Kohl’s (KSS) – shares rallying once again as Wall Street is back in love with the retailer. Shares are up 50% since mid-August if you could believe it. Not sure how much more legs the run has in the near-term.
Amazon.com, Inc. shares fell $3.68 (-0.29%) in premarket trading Friday. Year-to-date, AMZN has gained 9.11%, versus a 3.47% rise in the benchmark S&P 500 index during the same period.