Thursday 8/8/19=DJIA +371 NASDAQ +176
Daily Wrap: The market had one of its best days of 2019. Many Best Stocks Now flew off the shelves today. Investors could not buy them fast enough. I had three of the biggest winners in the market today: ROKU, AMD, and CVNA. I believe that today was our best day of the year also.
I sent out tweets on the following stocks today: MA (I have a new article out on Seeking Alpha, SHOP, ROKU, LPSN, GH, EXAS, CMG, CCI, AMD, AGYS, & PODD.
Here is a re-cap of what took place on Wednesdays. This obviously carried over into Thursday.
- Less than half an hour before U.S. markets close, all three major U.S. averages wipe out the sharp decline at the open of the trading session.
- The Nasdaq rises 0.5%, the S&P 500 gains 0.2%, and the Dow is roughly flat.
- The 10-year Treasury yield recovers to 1.71% vs. 1.63% earlier.
This news helped to fuel the fire.
- Japan +0.37%.
- Hong Kong +0.48%.
- China +0.93%.
- India +1.89%.
- London +0.15%.
- Paris +1.13%.
- Frankfurt +1.00%.
U.S. Labor market still strong.
- Initial Jobless Claims -8K at 209K vs. +215K consensus, 217K prior (revised).
- Continuous Claims: -15K to 1.684M vs. 1.690M consensus, 1.699M prior (unrevised).
One of Buffet’s biggest holdings. I am beginning to wonder about him.
- The selling pressure on Kraft Heinz (NASDAQ:KHC) has built up after the food company booked more than $1.2B in charges and writesdowns.
- The new writedowns from Kraft cover Eastern emerging markets and Latin America exports come on top of the $15B in writedowns for the Kraft and Oscar Meyer brands already disclosed.
- Adding to the negative sentiment, Kraft plans to file its 10-Q late.
- Shares of Kraft are now down 13.05% premarket to $26.84 (52-week low territory).
A FALSE PROFIT? Marcus Lemonis
- The RV sector is on watch after Camping World peels off 28% in a post-earnings slide tied to weak profit guidance.
- Thor Industries (NYSE:THO) is down 2.10% premarket and LCI Industries (NYSE:LCII) is off 1.05%. Patrick Industries (NASDAQ:PATK) and Winnebago (NYSE:WGO) could be in harm's way when they open for trading.
- Previously: Camping World -28% as profit pressures intensify (Aug. 8)
I am tempted, but still avoiding Gold.
- Gold prices power past $1,500/oz., +2.5% to $1,521.50, extending the yellow metal's YTD advance to 18%.
- "The rally seems set to roll on as no one is expecting any immediate progress on the trade front and the proactive easing efforts from central banks globally," Oanda's Edward Moya writes. "When the Fed capitulates later this month, that could be the catalyst to support the drive towards the $1,650/oz. level."
- "We see the ongoing steep rise in the gold price as an expression of the high risk aversion among market participants," says Commerzbank's Daniel Briesemann. "Gold is quite clearly still in demand as a safe haven in the current market environment, as reflected, among other things, in continuing ETF inflows."
Once again, tempting, but I am not biting. The dollar is too strong.
- Silver prices (SLV +4.2%) booked their biggest one-day gain in three years, with September silver settling +4.6% to $17.19/oz. to mark the metal's highest level in more than a year.
- Safe-haven demand is lifting silver in tandem with gold as global equities decline and government bond yields plunge.
- Shares of First Majestic Silver (AG +6%) likely are enjoying a boost from the broader action in the metal, as its Q2 loss matched consensus estimates and the miner's 25% jump in silver equiv. production to 6.4M oz. was more than offset by lower realized silver prices during the quarter.
- Also: USAS +16.1%, EXK +4.3%, MAG +3.7%, SVM +3.3%, FSM +3.1%, WPM +2.4%, PAAS +2.2%.
- ETFs: SLV, AGQ, PSLV, SIL, USLV, SIVR, ZSL, SLVO, SLVP, DSLV, DBS, USV
- While President Trump's tariffs against China have poured into the U.S. Treasury, the increase has basically been offset by aid to U.S. farmers, the Wall Street Journal reports.
- As of June 30, the government has pulled in $63B in tariffs over the previous 12 months, according to Treasury data, and the rate is increasing.
- In June, $6B in tariffs were collected by the U.S., up from $5.3B in May and $4.8B in April.
- U.S. is on track to collect $72B in tariffs annually and could hit $100B that Trump has estimated if the new 10%% tariffs on $300B of Chinese goods takes effect on Sept. 1.
- Pre-Trump era tariffs ran about $30B a year and the new tariffs have brought in a cumulative $27B, roughly the same size as the rescue programs authorized for farmers.
- But there are reasons that the tariffs may never hit the $100B/year level Trump projects -- for one, as the trade war intensifies, trade with China is declining. Once the U.S.'s largest trading partner, China has fallen behind Mexico and Canada so far this year.
Maybe a one-day passport will finally starting going up in price. Two grandparents, two parents, and three grandkids=$1,000.
- Disney (NYSE:DIS) declines 5.4% after reporting disappointing Q3 after the close yesterday.
- Pulling some points from last night's conference call:
- Domestic theme park attendance fell 3% during the quarter, with the decline at Disneyland Resort primarily driven by lower passholder visitation "as we managed demand for the first few weeks after opening Star Wars: Galaxy's Edge in order to maintain a high level of guest satisfaction," said CFO Christine McCarthy.
A huge winner for me on Thursday. AMD is a huge player in the cloud!
- AMD (NASDAQ:AMD) shares are up 6% pre-market after revealing late yesterday that Google (GOOG,GOOGL) Cloud is a new customer of its Epyc processors for data centers.
- The new client means all of the major U.S. cloud companies and several Chinese counterparts are using AMD.
- Late last month, Lynx Equity Research analysts reported "rumblings" that Google was dissatisfied with Intel and that Google-specific server boards were being made with Epyc.
- Intel shares are down 2.1% in early trading.
It can’t be any worse than the Possible Whopper.
- As the meatless craze continues, Burger King (NYSE:QSR) will bring the Impossible Whopper to all of its 7,200 U.S. locations today after a successful test run in seven markets.
- The nation's second-largest burger chain began testing the plant-based burger from Impossible Foods at locations in St. Louis in April.
- Those outlets saw traffic outperform national averages by 18.5% that month, according to a report from in Market.
Nice first eps report from this recent IPO. Lets see at least four more like this before we consider buying the stock, however.
- Lyft (NASDAQ:LYFT) soars 8% after Q2 beats and raised FY guidance that puts revenue at $3.47-3.5B (consensus: $3.32B; was: $3.28-3.56B) and adjusted EBITDA loss from $850-875M (consensus: $1.16B loss; was: $1.18-1.15B loss).
- Upside Q3 guidance has revenue of $900-915M (consensus: $841.7M) and adjusted EBITDA loss of $190-210M (consensus: $336.8M loss).
- The Q2 adjusted EBITDA loss was $204.1M, above the $274.6M loss estimate.
- Active riders totaled 21.81M (estimate: 21.34M) and the revenue per active rider was $39.77, above the $37.93 estimate.
- Competitor Uber (NYSE:UBER) is up 4.7% after hours.
- Earnings call starts at 5 PM ET with a webcast here.
THIS WAS THE STOCK OF THE DAY! WOW! I am long in the Ultra Growth Portfolio.
- Roku (NASDAQ:ROKU): Q2 GAAP EPS of -$0.08 beats by $0.13.
- Revenue of $250.1M (+59.5% Y/Y) beats by $26.74M.
- Press Release
Carvana had a nice day after a nice earnings beat. I own this one in my Emerging Growth Portfolio. Don’t forget to look under the hood!
- Carvana (NYSE:CVNA): Q2 Non-GAAP EPS of -$0.40 beats by $0.03; GAAP EPS of -$0.58.
- Revenue of $986.22M (+107.5% Y/Y) beats by $71.72M.
- Shares +16%.
- Royal Gold (NASDAQ:RGLD): Q4 Non-GAAP EPS of $0.45 misses by $0.01; GAAP EPS of $0.40 misses by $0.06.
- Revenue of $115.7M (-0.5% Y/Y) misses by $2.41M.
- Shares -1% AH.
- Upland Software (NASDAQ:UPLD): Q2 Non-GAAP EPS of $0.76 beats by $0.25; GAAP EPS of -$0.24 beats by $0.10.
- Revenue of $53M (+47.6% Y/Y) beats by $1.49M.