{"id":9706,"date":"2016-05-25T07:48:33","date_gmt":"2016-05-25T12:48:33","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=9706"},"modified":"2016-05-25T07:48:33","modified_gmt":"2016-05-25T12:48:33","slug":"before-the-open-may-25-4","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=9706","title":{"rendered":"Before the Open (May 25)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\n The Asian\/Pacific<\/strong> markets mostly posted big, across-the-board gains. Hong Kong and India gained more than 2%; Japan, Australia, Indonesia, South Korea and Taiwan rallied more than 1%. Europe<\/strong> is currently up. France, Germany, the Netherlands, the Czech Republic, Russia, Poland, Denmark, Spain, Italy and Belgium are up more than 1%. Futures here in the States<\/strong> point towards a moderate gap up open for the cash market. <\/span>
\nThe dollar is down a small amount. Oil and copper are up. Gold is down, silver is up. Bonds are down. <\/span>
\n Last week and over the weekend I said the failure of the bears to take control when they got the opportunity would likely lead to a bear trap – a push lower that causes longs to panic and sell and lures in shorts – that quickly reverses and surges higher. It happens with individual stocks; it happens with the overall market. It turns out this is exactly what has played out.<\/span>
\n Lots of bearish headlines (George Soros and Stanley Drunkenmiller both issuing negative commentary) coupled with the prospects of higher rates (even though the FOMC minutes revealed nothing new) pushed the S&P down to a 2-month low. An innocent move up off the low exploded yesterday, and just like that the S&P is 50 points off its low. It’s still range bound. It’s still in consolidation mode, but now the bulls have some wiggle room. They no longer have their backs against the wall.<\/span>
\n It happened with Apple. <\/span>
\n\"\"
\n It happened with Netflix. <\/span>
\n\"\"
\n I love the yin and yang of the market. It moves in one direction to trap everyone…and then it quickly reverses. <\/span>
\n Step #1 in trading patterns is recognizing them and playing them. Step #2 is quickly realizing a pattern isn’t working, so a quick exit is in order. Step #3 is to not only do #2, but to also reverse your position and go the other way. <\/span>
\n Trading becomes easier when you stop fighting the market…when you stop negotiating and bargaining with it..when you simply read the action and position yourself. More after the open. <\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\n Intuit (INTU +2.57%) rose 1% in after-hours trading after it reported Q3 adjusted EPS of $3.43, better than consensus of $3.21, and then raised guidance on full-year adjusted EPS to $3.63-$3.65 from a February 25 estimate of $3.45-$3.50.<\/span>
\n Arthur J Gallagher (AJG +1.11%) rose nearly 1% in after-hours trading after it announced that it will replace Coca-Cola Enterprises in the S&P 500 after the close of trading Friday, May 27.<\/span>
\n Dycom Industries (DY +1.30%) jumped over 8% in pre-market trading after it reported Q3 adjusted EPS of $1.08, well above consensus of 74 cents, and then said it sees Q4 adjusted EPS of $1.45-$1.60, higher than consensus of $1.36.<\/span>
\n Noble Energy (NBL -1.04%) was upgraded to ‘Buy’ from ‘Neutral’ at Sterne Agee CRT.<\/span>
\n Best Buy (BBY -7.42%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.<\/span>
\n Pilgrim’s Pride (PPC +0.20%) was downgraded to ‘Hold’ from ‘Buy’ at BB&T Capital Markets.<\/span>
\n ON Semiconductor (ON +2.18%) gained 2% in after-hours trading after it was rated a new ‘Outperform’ at CLSA.<\/span>
\n Axalta Coating Systems (AXTA +1.41%) fell nearly 1% in after-hours trading after it announced a sale of 25 million common shares by affiliates of the Carlyle Group.<\/span>
\n Computer Sciences (CSC +1.86%) surged over 20% and Hewlett Packard Enterprises (HPE +1.12%) jumped 11% in pre-market trading after CSC announced that it will merge with HP Enterprise’s Services Unit.<\/span>
\n Sportsman’s Warehouse Holdings (SPWH -2.10%) dropped 4% in after-hours trading after it said it sees fiscal-year 2017 adjusted EPS of 65 cents-73 cents, below consensus of 73 cents.<\/span>
\n Chesapeake Energy (CHK +10.35%) rose over 2% in after-hours trading after it announced, for the second time in a month, a debt for equity swap as it attempts to strategically reduce its debt load.<\/span>
\n American Axle & Manufacturing Holdings (AXL +2.68%) gained over 4% in after-hours trading after it announced that it will replace Education Realty in the Smallcap 600 after the close of trading Friday, May 27.<\/span>
\n Nimble Storage (NMBL +2.08%) jumped over 10% in after-hours trading after it reported a Q1 adjusted EPS loss of -24 cents, a smaller loss than consensus of -26 cents, and then said it sees Q2 revenue of $93 million-$96 million, above consensus of $92.7 million.<\/span>
\n Tuesday’s Key Earnings<\/strong>
\n AutoZone (NYSE:AZO) +3% on rising same-store sales.
\n Best Buy (NYSE:BBY) -7.5% after disappointing guidance.
\n HP Enterprise (NYSE:HPE) +10.9%; Computer Sciences (NYSE:CSC) +27.7% AH on their spinoff\/merger plans.
\n Intuit (NASDAQ:INTU) -2.2% AH despite a strong tax season.
\n Toll Brothers (NYSE:TOL) +8.7% as home prices increased.<\/span><\/span><\/span><\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 7:00 MBA Mortgage Applications
\n 8:30 International trade in goods
\n 9:00 FHFA House Price Index
\n 9:45 PMI Services Index Flash
\n 10:30 EIA Petroleum Inventories
\n 1:00 PM Results of $13B, 2-Year FRN Auction
\n 1:00 PM Results of $34B, 5-Year Note Auction
\n 1:00 PM Fed’s Kaplan: Monetary Policy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\nToday’s Earnings here<\/a><\/span>
\nOther<\/strong>…<\/span>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Wednesday. The Asian\/Pacific markets mostly posted big, across-the-board gains. Hong Kong and India gained more than 2%; Japan, Australia, Indonesia, South Korea and Taiwan rallied more than 1%. Europe is currently up. France, Germany, the Netherlands, the Czech Republic, Russia, Poland, Denmark, Spain, Italy and Belgium are up more than 1%. Futures […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9706"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9706"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9706\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}