CNBC Asks Adam About Earnings Season & Record High Stock Prices

S&P 500 passes 2,600 for the first time, led by tech stocks
Tuesday, Nov 21, 2017

  • The Dow, S&P 500 and Nasdaq hit record highs as tech stocks rallied.
  • The Technology Select Sector exchange-traded fund (XLK, which tracks the S&P 500 tech sector, rose 1 percent to trade at levels not seen since 2000.
  • Investors also cheered strong quarterly results from top companies in Corporate America.

U.S. stocks rose to record highs on Tuesday as a rally in tech lifted the broader market. Investors also cheered strong quarterly results from top companies in Corporate America.
The S&P 500 gained 0.7 percent and reached an all-time high, with information technology as the best-performing sector. The index also broke above 2,600 for the first time.
The Technology Select Sector exchange-traded fund (XLK, which tracks the S&P 500 tech sector, rose 1 percent to trade at levels not seen since 2000.
The Dow Jones industrial average jumped 172 points, with Microsoft and Apple leading advancers on the 30-stock index. It hit a record high at about 11 a.m. in New York.
The tech-heavy Nasdaq composite rose 1 percent to hit an all-time intraday high. Large-cap tech stocks like Facebook, Amazon, Netflix and Alphabet all traded higher, along with biotechnology stocks.
“A lot of big tech is up big, so that’s helping us here,” said Dave Lutz, head of ETF trading at JonesTrading. He also noted that tech stocks may be getting a boost ahead of the holiday shopping season.
Consumers will be hitting the stores and scouring the internet for deals as Black Friday and Cyber Monday approach.
“All eyes are on Santa as the holiday season starts up,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. Sandven also said investors are feeling bullish heading into the earnings season as the current economic backdrop is positive for the consumer.
Investors also digested strong earnings from some of the biggest U.S. companies. Medtronic, Hormel Foods and Dollar Tree all posted better-than-expected quarterly results Tuesday before the bell, sending their stocks higher. Lowe’s also reported stronger-than-expected quarterly earnings and revenue, but its stock fell 0.5 percent.
After Monday’s close, Intuit, Palo Alto Networks and Agilent Technologies reported better-than-expected earnings.
“Earnings season is winding down and, when you look back, most companies have beaten expectations and that’s a positive for the market,” said Adam Sarhan, CEO of 50 Park Investments.
Equities built on gains made during the previous session, which arose as investors bet that tax cut would keep the current economic expansion going.
On Monday, President Donald Trump said before a cabinet meeting that his administration was going to “give the American people a huge tax cut for Christmas.”
But concerns however still linger on Wall Street, as to whether a deal will come about and be finalized by the end of the year.
Nicholas Colas, co-founder of DataTrek Research, said in a note that “if it doesn’t happen soon, there may be no second chances,” as Democrats could take a majority in both the House and Senate next year.
On the data front, the Chicago Fed National Activity Index rose in October. Existing home sales rose more than expected in October.
In the oil market, crude prices rose as investors looked ahead to a key OPEC meeting. Brent crude traded around $62.27 and U.S. WTI hit $56.88 per barrel at 11:05 a.m. ET.
Overseas, trade in Europe ticked higher, while markets in Asia ended the session mostly higher.


Reuters Asked Adam About The Stock Market

US STOCKS-Wall St extends losses as financial stocks weigh

* Yellen to speak at award presentation at 2:30 p.m. ET

* U.S. 10-year treasury yields hit two-week lows

* Valeant surges on better-than-expected profit

* Priceline, TripAdvisor fall on weak forecasts

Nov 7 (Reuters) – Wall Street added to losses in early afternoon trading on Tuesday, with the S&P and the Dow weighed down by financial stocks and the Nasdaq slipping on weak forecast from travel services company, Priceline.

The financial sector led the decliners among the 11 major S&P sectors, with a 1.26 percent fall.

U.S. 10-year treasury yields hit a two-week low and briefly fell below the 200-day moving average.

Goldman Sachs weighed the most on the Dow, while JPMorgan and Bank of America were among the top three drags on the S&P.

Priceline fell 12.1 percent and that of travel-review website operator TripAdvisor hit a five-year low after the companies gave soft fourth-quarter profit forecasts.

Investors are also waiting for more clarity on President Donald Trump’s tax-cut plan as the earnings season winds down.

Republicans plan to bring their tax overhaul bill for a vote next week, U.S. House Ways and Means Committee Chairman Kevin Brady said on Tuesday, adding that he expects the plan to pass.

House Republicans last week unveiled a first draft that proposed a range of cuts aimed at helping businesses, including slashing the corporate rate to 20 percent from 35 percent.

“The market is waiting for the next catalyst, which is the tax bill,” said Adam Sarhan, chief executive of 50 Park Investments.

“It looks like, unless some major unforeseen event occurs, tax cuts will get passed in some shape or form. Whether (corporate tax cuts) it’s 20 percent or 25 percent, a big tax cut is coming.”

The S&P has risen about 15 percent in 2017 on the back on strong earnings, an improving economy and Trump’s promise to cut taxes.

With more than 400 of S&P 500 companies having reported, earnings for the third quarter are expected to have climbed 8 percent, compared with expectations of a 5.9 percent rise at the start of October, according to Thomson Reuters I/B/E/S.

At 12:29 p.m. ET (1629 GMT), the Dow Jones Industrial Average was down 44.59 points, or 0.19 percent, at 23,503.83, the S&P 500 was down 4.56 points, or 0.17 percent, at 2,586.57.

The Nasdaq Composite was down 30.31 points, or 0.45 percent, at 6,756.12.

Defensive sectors such as utilities and consumer staples were the top gainers on the S&P.

Investors will also lend an ear to a speech from outgoing Federal Reserve Chair Janet Yellen at a presentation of the Paul H. Douglas Award for Ethics in Government in Washington at 2:30 p.m. ET.

Her speech will come less than a week after President Donald Trump chose Fed governor Jerome Powell to replace Yellen at the end of her term in 2018.

Valeant Pharma surged 15.2 percent after the company’s profit beat Wall Street estimates.

Mallinckrodt sank to an all-time low after the drugmaker reported dismal quarterly revenue and warned of slower sales for Acthar, its biggest source of revenue.
Declining issues outnumbered advancers on the NYSE by 1,812 to 996. On the Nasdaq, 2,149 issues fell and 753 advanced.

NYTimes Asks Adam About Blackberry

BlackBerry Shares Down After Another Top Exec Leaves

Monday, October 16, 2017
(Reuters) – BlackBerry Ltd’s (BB.N) (BB.TO) U.S.-listed shares fell more than 1 percent on Monday, their first day of trading on the New York Stock Exchange, after a second senior executive at its patent licensing unit quit this month.

Victor Schubert, who was a licensing director for BlackBerry, said on Friday he was no longer with the company, following on the heels of the departure of Mark Kokes, who led BlackBerry’s overall patent strategy.

“Investors are left asking, if corporate insiders are leaving, why should we stick around?”, said Adam Sarhan, chief executive of 50 Park Investments in New York.

“With BlackBerry there’s also a larger macro question and its investors are asking ‘what’s their professional edge?’”, said Sarhan, who does not own shares in the company.

Monetizing the company’s intellectual property is a key part of BlackBerry Chief Executive John Chen’s plan for turning around the company, which took a back seat to Apple Inc (AAPL.O) and other firms in the smartphone industry.

BlackBerry is trying to get companies to pay licensing fees for the use of its 40,000 global patents on technology – spanning operating systems, networking infrastructure, automotive subsystems, cybersecurity and wireless communications.

The company is hoping the move will curb a six-year revenue decline as customers ditched its once-popular smartphones for Android and Apple devices.

BlackBerry debuted on the New York Stock Exchange on Monday, transferring its shares from Nasdaq.
Shares of the company were down 1.03 percent at $11.45, while the broader S&P 500 Index .SPX and the Dow Jones industrial average .DJI were up.
Full Story Here:

CNBC Asks Adam About The Stock Market Heading Into Earnings Season

Stocks trade little changed as Wall Street pauses before earnings season

  • Some of the major companies scheduled to report quarterly results this week include BlackRock, Citigroup, Bank of America and Wells Fargo.
  • Equities have been at record levels on renewed hopes of tax reform and strong economic data.

Monday, October 9, 2017
U.S. equities traded in a tight range on Monday as investors looked ahead to the start of earnings season.
The Nasdaq composite traded 0.1 percent higher and hit a record high, helped by a rise in tech stocks. The Dow Jones industrial average also posted an all-time high before trading flat. The S&P 500 slipped 0.1 percent and traded about 4 points below its record high.
Some of the major companies scheduled to report quarterly results this week include BlackRock, Citigroup, Bank of America and Wells Fargo.
“It’s natural for the market to digest big moves ahead of a major catalyst. In this case, it’s earnings season,” said Adam Sarhan, CEO of 50 Park Investments.
Equities have been at record levels on renewed hopes of tax reform and strong economic data.
The prospects of tax reform have been a boon to the U.S. stock market since President Donald Trump’s election.
Trump “has yet to deliver on cutting taxes and bringing back overseas earnings, but both remain possible,” said Ed Yardeni, president and chief investment strategist at Yardeni Research. “If Trump delivers on deregulation and on tax cuts, smaller corporations might benefit more than larger ones.”
Shares of Netflix hit an all-time high after the company raised prices on some of its plans last week. Its $10/month high-definition plan now costs $11 and the 4K streaming plan will cost $14 per month, a $2 increase.
The changes affect new U.S. members, while existing members will be alerted of the price change on Oct. 19 ahead of their next billing cycle.
Netflix has learned quite a bit about consumer behavior regarding price increases over the years, and we think the company’s nuanced approach may minimize subscriber disruption this time around,” said Scott DeVitt, an analyst at Stifel, in a note last week.
“Since the most value-conscious consumers will not see their plan increase in price, the members most likely to cancel will have no reason to,” DeVitt said.
Shares of Apple also rose after analysts at Bank of America Merrill Lynch reiterated its buy rating on the stock, noting the company’s earnings will jump under the Republican plan to lower corporate taxes.


Reuters Asks Adam About The Stock Market Hitting New Record Highs

(Reuters) – All the three U.S. stock indexes touched fresh record highs on Tuesday, driven by gains in Ford Motor (F.N) and General Motors (GM.N) after the carmakers reported strong monthly sales data.

The rise in Ford and General Motors helped lift the S&P 500 Consumer Discretionary .SPLRCD sector.

Analysts had forecast September auto sales to be the highest in 2017, largely due to Americans in hurricane-ravaged cities replacing their damaged vehicles.

However, the market traded in a narrow range as investors awaited the upcoming earnings from big names to help justify the lofty valuations.

Third-quarter earnings for S&P 500 companies are expected to increase 6.2 percent from a year earlier, according to Thomson Reuters research, after rising a better-than-expected 12.3 percent in the second quarter.

U.S. stocks started the fourth quarter on a strong note on Monday after factory data pointed to underlying strength in the economy.

The encouraging data helped world shares touch their latest record highs on Tuesday, while lifting the dollar to its loftiest in 1-1/2 months.

“This year has been one of the strongest year ever, not from a percent gain standpoint, but from a lack of the correction or lack of a pullback,” said Adam Sarhan, chief executive of 50 Park Investments in New York.

“So to me, the market is cautiously optimistic.”

Investors are also watching out for progress on President Donald Trump’s tax reform plan, which calls for lowering corporate tax to 20 percent.

Billionaire investor Warren Buffett told CNBC on Tuesday that the odds of getting a tax plan passed are higher than what most people expect, but expressed uncertainty over the reforms.

Seven of the 11 major S&P indexes were higher on Tuesday, led by technology .SPLRCT, healthcare .SPXHC and consumer discretionary.

At 9:45 a.m. ET, the Dow Jones industrial average .DJI was up 28.34 points, or 0.13 percent, at 22,585.94, while the S&P 500 .SPX was up 0.23 points, or 0.01 percent, at 2,529.35.

The Nasdaq Composite .IXIC was up 5.61 points, or 0.09 percent, at 6,522.33.

Shares in Tesla Inc (TSLA.O) were down 2 percent after the luxury electric vehicle maker said its planned ramp-up for the new Model 3 mass-market sedan faced production bottlenecks.

Lennar Corp’s (LEN.N) shares rose about 2 percent following a higher-than-expected quarterly profit from the No.2 U.S. homebuilder. Tile Shop Holding’s shares (TTS.O) plunged 30 percent after the natural stone retailer scrapped its 2017 forecast.

Declining issues outnumbered advancers on the NYSE by 1,278 to 1,265. On the Nasdaq, 1,314 issues rose and 1,069 fell.

CNBC Asks Adam About The Stock Market On The Last Day Of August

US stocks rise as Wall Street tries to end August on a high note
Thursday, August 31, 2017

  • Wall Street has dealt with different issues throughout the month.
  • Yet stocks were on track for a steady monthly performance.

U.S. stocks traded higher on Thursday, the last trading day of the month, as Wall Street tried to end August on a high note. Investors also digested a broad swath of economic data ahead of a key employment report.
The Dow Jones industrial average rose 75 points, with UnitedHealth contributing the most to the gains. The S&P 500 gained 0.5 percent, with health care leading all sectors higher. The Nasdaq compositeadvanced 0.6 percent.
Wall Street has dealt with different issues throughout the month, including political uncertainty, geopolitical tension and a storm that ravaged Houston and other parts of South Texas. Yet stocks were on track for a steady monthly performance.
Entering Thursday’s session, the Dow was on track for a marginal monthly gain, while the Nasdaq composite was up 0.3 percent in August. The S&P was on track for a slight loss, however, and was set to snap a four-month winning streak.
Aug. 21 “marked a near-term low for the market and stocks have bounced back from it. Two days ago, we also saw another near-term low that the market rebounded from,” said Adam Sarhan, CEO of 50 Park Investments. “Investors are now looking for clues as to where does the market go from here.”
Investors also digested key economic data released Thursday.
Weekly jobless claims totaled 236,000, matching estimates, while the so-called core personal consumption expenditures increased 1.4 percent in July on a year-over-year basis, the smallest gain since December 2015. The core PCE is the Federal Reserve’s preferred measure of inflation, and it’s lagging the central bank’s 2 percent target.
“The headline inflationary figures, which include swings in energy costs, should soar for September; however, this jump will prove ephemeral and will not impact the Fed’s preferred gauge of pricing pressures,” said Jeremy Klein, chief market strategist at FBN Securities.
Treasury yields fell after the inflation data were released. The benchmark 10-year note yield traded at 2.138 percent, while the two-year yield slipped to 1.33 percent.
Other economic data released Thursday included pending home sales, which fell 0.8 percent in June. The data deluge comes a day ahead of the Bureau of Labor Statistics’ monthly employment report, which is scheduled for release on Friday at 8:30 a.m. ET.
Overseas, stocks got a boost from strong economic data. In Europe, the Stoxx 600 index rose nearly 1 percent after euro zone inflation hit 1.5 percent on a year-over-year basis in August, marking the highest rate in four months. Asian stocks closed mostly higher overnight after China’s official manufacturing PMI topped expectations.
The positive overseas data followed strong economic numbers out of the U.S. On Wednesday, the U.S. government said the economy grew at an annualized rate of 3.0 percent on an annualized basis, above the expected gain rate of 2.7 percent.