Bill Gunderson’s Tuesday Fishing (Market) Report. July 16, 2019

Tuesday 7/16/19=DJIA -23   NASDAQ -35

The market sold off today when President Trump said that we are still a long way from a China trade deal. I had an overall down day in my portfolios. ROKU had a very good day. I featured it on my radio show today. I sent out tweets on the following stocks: DAL, ALK, UAL, V, FATE, EADSY, CMG, and AMD.

Here was the mood of the market as we awaited a new trading day.



Futures pause as more earnings awaited

  • Wall Street inched up to notch a fresh record close on Monday, but stock index futures are now in wait-and-see mode as earnings season gets underway in earnest.
  • Goldman Sachs, JPMorgan, Wells Fargo and Charles Schwab will report Q2 results before the bell, along with other big names such as Johnson & Johnson and Domino's Pizza.
  • Citigroup kicked off the festivities yesterday with a mixed quarterly report as the bank reported better-than-expected profits, but also a decline in its net interest margin.


I can hardly wait!


E*Trade lowers robo advisory portfolio minimum investment

  • E*Trade Financial (NASDAQ:ETFC) says it's improved its robo advisory offering, Core Portfolios, by lowering the minimum investment to $500, expanding the number of ETFs customers can invest in a portfolio, and increasing cash allocation.
  • Customer can invest in a portfolio of six to eight ETFs.
  • Core Portfolios cash allocation is now 1%.
  • In the Automatic Investing capabilities, E*Trade lowers the minimum recurring contributions to $25.
  • Core Portfolios is a professionally managed advisory program with a 0.30% annual advisory fee. Portfolios range from Conservative to Aggressive Growth and consist of non-proprietary ETFs.


Another strong report on the economy. Does this lower the chances for a rate cut?


Core retail sales come in fast

  • June Retail Sales: +0.4% M/M vs. +0.1% consensus; +0.4% prior (revised).
  • Retail Sales (less auto & gas): +0.7% M/M vs. +0.4% consensus; +0.5% prior.
  • Core Retail Sales: +0.4% vs. +0.2% consensus; +0.4% prior (revised).
  • Retail sales control group: +0.7% vs. +0.4% consensus; +0.6% prior (revised).


This helps chances for a rate cut.


Industrial production flat in June

  • June Industrial Production: flat to 109.6 +0.1% consensus, +0.4% prior.
  • Capacity Utilization 77.9% vs. 78.2% consensus, 78.1% prior (revised).


Banks are being disrupted. It is better to own the disrupters!


IMF warns banks must evolve or be 'left behind'

  • In a new paper entitled "The Rise of Digital Money," IMF authors Tobias Adrian and Tommaso Mancini-Griffoli argued the two most common forms of money today, cash and bank deposits, will "face tough competition and could even be surpassed."
  • While banks are "unlikely to disappear" as they face growing threats from big tech companies and fintech startups, "some will be left behind no doubt."
  • It comes as PayPal (NASDAQ:PYPL) expanded further in Europe on Monday by launching its international money transfers service Xoom in Britain and 31 other countries.


Paypal is a good example of a disrupter.


PayPal Xooms into Europe

  • PayPal (NASDAQ:PYPL) brings its international money transfer service to 32 markets in Europe.
  • Users in those markets can us Xoom to send money, pay bills, or top up phones in more than 130 markets internationally.
  • PayPal customers across Europe can also use bank accounts linked to their PayPal account to transfer funds in addition to the debit and credit card options available through Xoom.


Bold charges against Google.


Alphabet -1% after Trump supports Thiel accusations

  • Alphabet (GOOGGOOGL) shares slip pre-market after President Trump tweets in support of Peter Thiel's accusation that Google is working with the Chinese government and suggestion the company should be tried for treason.
  • Trump: "A great and brilliant guy who knows this subject better than anyone! The Trump Administration will take a look!"
  • Alphabet shares are down 1.1% to $1,138.21.
  • Related: Google is one of the tech giants testifying today and tomorrow on Capital Hill, responding to allegations of political bias.


Amazon workers in Minnesota start six-hour strike

  • Amazon (NASDAQ:AMZN) fulfillment center workers in Shakopee, Minn., walked out at 3 p.m. ET today to protest working conditions and wage practices, on the opening day of the company's annual Prime Day event.
  • Workers in Germany also walked out, as they have done during sale days in past years, but the Minnesota move is the first major strike of workers in the U.S. during Prime Day.
  • The Minnesota strike is intended to "provide safe and reliable jobs, increase respect and opportunities for advancement for the predominantly East African workforce... and to demand concrete action from Amazon to address critical issues like climate change," the organizers say.
  • "These groups are conjuring misinformation to work in their favor, when in fact we already offer the things they purport to be their cause - industry leading pay of $15/hour, benefits and a safe workplace for our employees," AMZN says.
  • We know we need to take the time to get this right," he says in prepared testimony. "And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.
  • Fed Chairman Jay Powell expressed the central bank's "serious concerns" over Libra in testimony before the House last week.



Blue Apron boosted by addition of Beyond Meat

  • Blue Apron (NYSE:APRN) announces the addition of Beyond Meat (NASDAQ:BYND) products to its offerings.
  • For the moment, the news is good for an 8% pop in APRN's roughed-up shares. BYND is higher by 0.5%.




Johnson & Johnson EPS beats by $0.14, beats on revenue

  • Johnson & Johnson (NYSE:JNJ): Q2 Non-GAAP EPS of $2.58 beats by $0.14; GAAP EPS of $2.08 beats by $0.04.
  • Revenue of $20.56B (-1.3% Y/Y) beats by $170M.
  • Shares +0.81% PM.


JPMorgan Chase EPS beats by $0.33, beats on revenue

  • JPMorgan Chase (NYSE:JPM): Q2 GAAP EPS of $2.82 beats by $0.33.
  • Revenue of $29.57B (+4.2% Y/Y) beats by $1.05B.
  • Shares +0.5% PM.


Goldman Sachs EPS beats by $0.72, beats on revenue

  • Goldman Sachs (NYSE:GS): Q2 GAAP EPS of $5.81 beats by $0.72.
  • Revenue of $9.46B (-1.9% Y/Y) beats by $580M.
  • Shares +0.2% PM.



Wells Fargo EPS beats by $0.12, beats on revenue

  • Wells Fargo (NYSE:WFC): Q2 GAAP EPS of $1.30 beats by $0.12.
  • Revenue of $21.6B (flat Y/Y) beats by $650M.



Charles Schwab EPS beats by $0.01, revenue in-line

  • Charles Schwab (NYSE:SCHW): Q2 GAAP EPS of $0.66 beats by $0.01.
  • Revenue of $2.68B (+7.6% Y/Y) in-line.
  • Shares +1% PM.


Synovus EPS beats by $0.01, misses on revenue

  • Synovus (NYSE:SNV): Q2 Non-GAAP EPS of $1.00 beats by $0.01; GAAP EPS of $0.96 beats by $0.03.
  • Revenue of $408.3M (+37.9% Y/Y) misses by $73.83M.


Domino's Pizza EPS beats by $0.16, misses on revenue

  • Domino's Pizza (NYSE:DPZ): Q2 Non-GAAP EPS of $2.19 beats by $0.16; GAAP EPS of $2.19 beats by $0.17.
  • Revenue of $811.65M (+4.1% Y/Y) misses by $23.22M.
  • Shares +0.03% PM.
Bill Gunderson

Bill Gunderson

Bill Gunderson is a wealth manager, syndicated financial talk show host, and author of the Best Stocks Now -- one of the top 10 best selling financial aps in the world.

He is a frequent guest on local and national media, including CNBC, Fox Business, Fox News, Bloomberg, Barron's, Forbes, and others.

His wealth management business caters to high net worth individuals clients all over the world. He would be happy to look at your portfolio.

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