PRE MARKET
NDX futures up decently…everything else a wee bit.
INTC, AAPL, AMZN and a few others get the opening bump this morning…just on momentum. AAPL and FB report this week. AAPL announces going to use INTC chips so INTC up even though very extended.
Today continues end-of-month windiw dressing. Of course, it is illegal so it does not happen.
SNE, CGNX, RYAAY gapping up…other smaller gappers are MA, AET, BP, MOS, ALSN, BURL, MDLZ, EXAS
Gapping down:
UAA, LL, NLS, MAC, SANM, AGCO, AEIS, CMP, QCOM
PRE MARKET
In DC news, Paul Manafort and Richard Gates have been indicted by a federal grand jury. The ride begins. Looks like a bunch of financial crimes. As I always say…if you do the crime, be prepared to do the time. And as predicted, the media is breathless. They are hoping and praying these 2 have something on the Prez. In the indictment, the President is not named. Accusations of money laundering and tax stuff.
S&P futures down. Nasdaq futues flat. AAPL and FB had little breakouts Friday in sympathy with AMAZON and GOOGLE. They continue up this morning but report this week.
Earnings of note this week:
Tuesday:
Before open: AET, AGCO, CMI, ETN, HCA, IPGP, PFE, SHOP, UAA.
After close: CHRW, CHKP, EA, FISV, PZZA, PAYC, X
Wednesday:
Before open:
AGN, CTSH, EAT, EL, GRMN, GRPN, SODA, TAP
After the close:
ALL, CF, CTRP, FB, FEYE, GPRO, OXY, PXD, QCOM, QRVO, SHAK, TSLA, YELP
Thursday:
Before the open:
BABA, BLL, DLPH, GOGO, H, ICE, KEM, PH, RL, W, YUM, ZTS
After the close:
AAPL, AIG, ATVI, CC, FLR, FOSL, HLF, STMP, SBUX, VECO
As always, we do our best for accuracy on dates but dates can change. Please check for yourself.
WEEKEND THOUGHTS
—By Gary Kaltbaum October 30, 2017—
—Random stuff and then the markets.—
—Wednesday, November 15 is the 14th annual (maybe 15th) Kaltbaum family Blessing’s Banquet. Every year, we sponsor a Thanksgiving dinner for about 400 youth from the Boys and Girl’s Clubs of Central Florida. Most would not have Thanksgiving dinner if not for this night. Volunteers show up from the likes of Universal, Disney, Tupperware and many other great companies around Central Florida. We have magicians, games and characters from Universal (I love Scooby Doo)The youth are the guests. We are the servers. If you would like to volunteer, email me at gkaltbaum@kaltbaum.net. We would love to see you. Remember,at the holiday season or just any time, consider doing something for someone you need absolutely nothing from.—
—Tax reform:—
—Get your hands off the 401k. The 401k was started in 1978 and since, almost $6 trillion has been built up in it. Over 50 million people and 500,000 companies are involved. So if you want to piss off a lot of people, go ahead. Screw with it.—
—Speaking of tax reform, DO NOT RAISE ANYONE’S TAXES. You hear that. We do not have a tax problem. We have a government spending problem. Do not be snowed into the lie about things being paid for. Did you hear any of the socialists complain about “how can we afford” when Obama decided to go into hock about $9 trillion under his two terms? Lower the spending but unfortunately, no one and we mean no one has the grapefruits to stop this runaway freight train.—
—The last time I saw the media frothing at the mouth like this was when they thought Karl Rove was going to be indicted for something. I still remember the day Rove was not indicted. It was like the media had a funeral that day. This is going to be quite the interesting week in Washington land! I don’t care what party it is. If you did the crime, you need to pay the piper…but just my opinion. This whole episode smells from both sides!—
—Wednesday, November 15 is the 14th annual (maybe 15th) Kaltbaum family Blessing’s Banquet. Every year, we sponsor a Thanksgiving dinner for about 400 youth from the Boys and Girl’s Clubs of Central Florida. Most would not have Thanksgiving dinner if not for this night. Volunteers show up from the likes of Universal, Disney, Tupperware and many other great companies around Central Florida. We have magicians, games and characters from Universal (I love Scooby Doo)The youth are the guests. We are the servers. If you would like to volunteer, email me at gkaltbaum@kaltbaum.net. We would love to see you. Remember,at the holiday season or just any time, consider doing something for someone you need absolutely nothing from.—
—Tax reform:—
—Get your hands off the 401k. The 401k was started in 1978 and since, almost $6 trillion has been built up in it. Over 50 million people and 500,000 companies are involved. So if you want to piss off a lot of people, go ahead. Screw with it.—
—Speaking of tax reform, DO NOT RAISE ANYONE’S TAXES. You hear that. We do not have a tax problem. We have a government spending problem. Do not be snowed into the lie about things being paid for. Did you hear any of the socialists complain about “how can we afford” when Obama decided to go into hock about $9 trillion under his two terms? Lower the spending but unfortunately, no one and we mean no one has the grapefruits to stop this runaway freight train.—
—The last time I saw the media frothing at the mouth like this was when they thought Karl Rove was going to be indicted for something. I still remember the day Rove was not indicted. It was like the media had a funeral that day. This is going to be quite the interesting week in Washington land! I don’t care what party it is. If you did the crime, you need to pay the piper…but just my opinion. This whole episode smells from both sides!—
—It does not matter who the president picks to head the Fed. It will be just more of the same. Easy and easier money…and if we get any sort of bearish market or any sort of downturn, I will guarantee you, they start printing again.—-
—Is this 1999 all over again? This being the question I get the most. Answer: NO! The only 1999ish stuff going on is this bitcoin stuff. In 1999, companies would add .com to their name and double. In 1999, anything that breathed doubled, and then doubled again. In 1999, we had the end of the grand 18 year super-cycle culminating in that climactic move. What we are seeing now is not even close. Yes, valuations are in the higher end of historic range. Yes, the easy money pouring out of every central bank is gargantuan. But price is not even close. AMAZON had a gargantuan move but sales were up 34%. Yes, earnings guidance headed south all quarter and then the beat but earnings are going to re-accelerate again. GOOGLE had a big move. Earnings were up 32%, sales up 24%. SEMICONDUCTOR stocks keep soaring but so are earnings and sales. Leave no doubt we are way overdue for some ugly, but there is meat on the bone in many of these category killer companies.—
—The market continues to act well. The only big complaint we have is sentiment off the charts bullish…which gets us closer to some give back. Also, take away the fireworks in the NASDAQ-types this week and internals actually deteriorated. Fewer and fewer stocks are working. And amazingly, the new low list actually picked up on the week.—
—But plenty working and notwithstanding a market top soon, we had breakaway gaps to the upside on the biggest of big in GOOGLE and AMAZON and also had gaps in INTEL and MICROSOFT. Breakaway gaps are usually very bullish if the markets just hold up. If they continue up, the NASDAQ/NDX continue to go up as they have huge influence on the indices. Next up will be APPLE, FACEBOOK and PRICELINE.—
—Cannot wait for TV and radio this week. Going to be lots to talk about.—
PRE MARKET
Big gaps in big Nasdaq-types doing the trick this morning.
GOOGL up $30. AMZN up $69. MSFT and INTC also up.
MAT, EXPE, BIDU, FTNT, GILD, WDC, EFII on the downside.
Yesterday, BIOTECHS continue the cave and should be avoided and now DEFENSE stocks look to be in trouble off the reactions to numbers.
Will have a ton more over the weekend.
PRE MARKET NOTES
Lots to cover.
We have told you for many moons that the world will never stop their easy money policy. They can’t. They have caused and bought up asset prices across the spectrum. Depending on which abacus you are using, the guess is between $15-20 trillion…let us repeat…TRILLION of printed money, out of thin air, to buy up assets. We are told Yellen has backed away. In fact, she has been raising rates and now starting to pull back on all the printed money but we aint buying it. Because at the same time she stopped, Japan and Europe started their printing to the tune of almost 1 trillion each. That is gargantuan. On top of that, negative interest rates. Fast forward to today. They are still at negative rates and now the dude from the ECB is trying to tell us they will tighten. Do you want to know what their tightening is? Keeping negative rates and printing more than 1/2 trillion each year. And leave no doubt, any dislocation, any market drop will see all ramp up again as a bunch of fedheads have stated that.
Tons of earnings…can’t keep up. Are you ready?
BWLD up $16…stock slaughtered but better than the bad estimates.
TREE up $14, just dropped $40.
TWTR…yes TWTR up 10% on flat numbers and 5% sales drop.
TER, STM small gaps to the upside in semiconductor group. There are a few more smaller gaps.
To the downside:
NOW, UCTT, ORLY, NTRI, XLNX, VAR, CTXS, DLB, AMGN, CELG, NOK, TAL, CA, MLNX, TSCO, UHS, TRN, NTGR. Some big, some small. CELG a biggie as BIOTECH index breaking down.
Also want to make note of some decent distribution showing up in the TRANSPORTS. Has not broke any support, just some issues up in here.
AMZN, GOOG, MSFT tonight so big stuff for NASDAQ and NDX. Pay attention. Soon, FB and AAPL.
In spite of the gaps, futures up today as markets love that Europe going to print infinitum.
