Before the Open (Nov 11)

Good morning. Happy Friday.
The Asian/Pacific markets closed with a lean to the downside. Indonesia fell 4%, India and Taiwan more than 2%, and Malaysia and Hong Kong dropped more than 1%. China and Australia did okay. Europe is currently mostly down, but losses aren’t extreme. The UK is down more than 1%; the Netherlands, Norway, Turkey, Finland and Spain are also weak. Germany and Italy are up. Futures in the States point towards a moderate gap down open for the cash market.
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The dollar is down. Oil is down; copper is up. Gold and silver are down. Bonds are down.
The market has not only survived this week, it has done very well. The Dow is at a new all-time high. Most other indexes have surged off their lows and are doing well. The Nas and Nas 100 have struggled. Overall I’d consider the performance to be very good, but the difference between the Dow and Nas is notable.
The first move off a low is the easy move. The result of the election was a surprise, but the market’s reaction was not. Most expected Clinton to win, and most expected the market to rally. So it’s not like there were a lot of trapped shorts that needed to quickly cover. But there were many traders on the sidelines who had to suddenly get into the market. Now (or next week) we’ll find out how strong the market is and what kind of staying power it has. There needs to be continued buying several days after the initial thrust takes place. That’s what we’ll be looking for next week.
We also must be very aware of the rotation of money. There have been some obvious winners and losers the last couple days. Money is definitely moving out of some groups and into others. You want to be in the strong groups. If you simply look for good-looking charts, you have to be good and lucky to make money over time. But if you restrict yourself to only playing stocks in the best-performing groups, a rising tide within those groups helps significantly. I’ll talk about this more over the weekend.
Stock headlines from barchart.com…
Michael Kors Holdings Ltd. (KORS +3.15%) slipped 4% in after-hours trading after it cut its fiscal 2017 adjusted EPS forecast to $4.37-$4.43 from an August 10 view of $4.56-$4.64.
Nvidia (NVDA -3.13%) surged 13% in pre-market trading after it reported Q3 adjusted EPS of 94 cents, well above consensus of 69 cents, and said it authorized an additional $2 billion for its share buyback program.
Walt Disney (DIS +0.34%) is up nearly 2% in pre-market trading after CEO Oger said he sees modest growth in 2017 and said online ESPN will be more user-friendly. Disney initially was down 3% in after-hours trading after it reported Q4 revenue of $13.1 billion, below consensus of $13.5 billion.
Nordstrom (JWN +7.15%) jumped 5% in after-hours trading after it reported Q3 adjusted EPS of 84 cents, well above consensus of 51 cents, and then raised guidance on full-year adjusted EPS to $2.85-$2.95 from a prior view of $2.60-$2.75.
Microsemi (MSCC -0.27%) gained over 1% in after-hours trading after it reported Q4 adjusted EPS of 91 cents, better than consensus of 90 cents.
Dillard’s (DDS +9.90%) declined over 6% in after-hours trading after it reported Q3 EPS of 67 cents, below consensus of 76 cents, and said Q3 comparable sales were down -4%, weaker than consensus of -2.7%.
PRA Health Sciences (PRAH +0.09%) dropped 4% in after-hours trading after it reported a secondary offering of 7.5 million shares.
Camping World Holdings (CWH +1.50%) rose 3% in after-hours trading after it reported Q3 revenue of $1.01 billion, higher than consensus of $971 million.
Trade Desk (TTD +2.09%) jumped nearly 7% in after-hours trading after it reported Q3 revenue of $53 million, better than consensus of $49.1 million and said it is “massively” outpacing growth of the total market.
Airgain (AIRG unch) climbed 3% in after-hours trading after it reported an unexpected Q3 EPS profit of 16 cents, much better than consensus of a -1 cent loss.
Photronics (PLAB +0.47%) slumped 18% in after-hours trading after it lowered guidance on Q4 EPS to 2 cents-3 cents from a prior view of 9 cents-17 cents.
Sunrun (RUN -1.67%) gained 3% in after-hours trading after it reported Q3 EPS of 16 cents, above consensus of 12 cents, and said it sees 2016 deployments of 285 MW, above a prior view of 270-280 MW.
Corbus Pharmaceuticals Holdings (CRBP -6.20%) slid over 3% in after-hours trading after it reported a Q3 loss of -12 cents a share, a wider loss than consensus of -10 cents.
Thursday’s Key Earnings
AstraZeneca (NYSE:AZN) -4.4% on falling Crestor sales.
Disney (DIS) +2.2% AH following promises of growth.
Macy’s (NYSE:M) +5.6% positive holiday outlook, real estate plans.
Michael Kors (NYSE:KORS) -4.5% AH seeing further sales weakness.
Nordstrom (NYSE:JWN) +4.4% AH topping expectations.
Nvidia (NASDAQ:NVDA) +12.6% AH after strong Q3 results.
SodaStream (NASDAQ:SODA) +16.2% blowing through estimates.
Today’s Economic Calendar
10:00 Consumer Sentiment
11:00 Stanley Fischer
1:00 PM Baker-Hughes Rig Count
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers