April 19, 2016 Market Wrap Up

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The market was relatively mixed today, with the Dow Jones Industrials, S&P 500 trading higher, while, the Nasdaq closed lower due to some poor earnings results in some heavily weighted companies like Netflix.

The VIX sold off a little bit, closing the day at 13.24. This the fourth straight close under 14, and the second lowest closing print of the year.

Crude Oil has had a nice bounce off Sunday’s lows, following an unproductive Doha meeting. WTI Crude closed the day above 41, at 41.08.

On the options front, we saw large call buying activity in Deere & Co. (DE). In addition, we saw heavy put buying in Cardinal Health (CAH), which saw 6.2 times usual options volume.

Stocks in play included: IBM (IBM) -5.6%, Netflix (NFLX) -12.9%, and SeaDrill (SDRL) +12.9%

Here’s what’s left this week:

Key Economic Data:
20 April 2016- Existing Home Sales 10:00 AM ET, EIA Petroleum Status Report 10:30 AM ET
21 April 2016- Jobless Claims 8:30 AM ET, Philadelphia Fed Business Outlook Survey 8:30 AM ET

Key Earnings:
20 April 2016- ABT, ARMH, ASML, CHKP, EMC, CP, KO, HBAN, ITW, SAP, TUP, USB, AXP, CCK, CTXS, FFIV, MAT, NEM, QCOM, SYK, YUM, VMI
21 April 2016- ALK, BBT, BIIB, BK, CFG, DGX, DHI, FCS, FITB, GM, KCG, KEY, LUV, PPG, PHM, SHW, UA, UNP, VZ, AMD, GOOGL, MSFT, SBUX, SWN, V, SLB
22 April 2016- CAT, GE, KMB, MCD, SYF, STI

April 17, 2016 The Week Ahead

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The S&P 500 finished the week higher, actually near 3-month highs as earnings season picks up steam. On the menu this week: Microsoft, Netflix, Johnson & Johnson, American Express, Alphabet, Starbucks, and McDonalds just to name a few.

The VIX closed the week nearly two points lower from last Friday, at 13.62.

Crude oil finished the week slightly higher, however; it’s seeing heavy selling pressure Sunday night after OPEC’s Meeting this weekend. When countries came together this weekend, they were unable to come up with any form of resolution on a potential production freeze. With that said, Iran decided not to freeze output causing a standoff amongst members.

Here’s what’s on tap for this week coming up…

Key Economic Data:
19 April 2016- Housing Starts 8:30 AM ET
20 April 2016- Existing Home Sales 10:00 AM ET, EIA Petroleum Status Report 10:30 AM ET
21 April 2016- Jobless Claims 8:30 AM ET, Philadelphia Fed Business Outlook Survey 8:30 AM ET

Key Earnings:
18 April 2016- HAS, JBHT, MS, PEP, BMI, IBM, NFLX
19 April 2016- EAT, GS, HOG, JNJ, KSU, PM, UNH, DFS, LLTC, ISRG
20 April 2016- ABT, ARMH, ASML, CHKP, EMC, CP, KO, HBAN, ITW, SAP, TUP, USB, AXP, CCK, CTXS, FFIV, MAT, NEM, QCOM, SYK, YUM, VMI
21 April 2016- ALK, BBT, BIIB, BK, CFG, DGX, DHI, FCS, FITB, GM, KCG, KEY, LUV, PPG, PHM, SHW, UA, UNP, VZ, AMD, GOOGL, MSFT, SBUX, SWN, V, SLB
22 April 2016- CAT, GE, KMB, MCD, SYF, STI

April 14, 2016 Market Wrap Up

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The market was relatively flat today, trading in a very narrow range. The S&P 500 traded between 2078 to 2087, closing in the middle of that range at 2082.

Despite a slow moving market, the VIX sold off a little bit, closing at 13.72.

The United States Oil Fund (USO) was down .5%, closing the day at 10.48. Crude oil is still comfortably trading above $41 per barrel.

On the options front, we saw large call buying activity in Union Pacific (UNP). In addition, we saw heavy put buying in Waddell & Reed Financial (WDR), which saw 48.4 times usual options volume.

Stocks in play included: Bofi Holding (BOFI) -16.3%, Repros Therapeutics (RPRX) +20%, and Seagate Technology (STX) -20%

Earnings tomorrow include Citigroup. Thus far, JPMorgan Chase and Bank of America have posted solid results. However, Wells Fargo did not react as well on their earnings.

Here’s what’s left this week:

Key Economic Data:
15 April 2016- Industrial Production 9:15 AM ET

Key Earnings:
15 April 2016- C, RF, SCHW

April 10, 2016 The Week Ahead

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The S&P 500 finished the week lower, however; we’re only 1.32% off our yearly highs heading into earnings season. With that said, several names in the financial sector will be reporting. This includes JPMorgan, Wells Fargo, Bank of America, and Citi to name a few.

The VIX closed the week more than two points higher from last Friday, at 15.36. It didn’t stick in the 13-range for too long.

Crude oil finished the week higher, more than 6% as they inch back near $40 per barrel. Part of the help came from the EIA Petroleum numbers, which indicated greater than expected draws in supply.

Here’s what’s on tap for this week coming up…

Key Economic Data:
13 April 2016- Retail Sales 8:30 AM ET, PPI-FD 8:30 AM ET, EIA Petroleum Status Report 10:30 AM ET
14 April 2016- Consumer Price Index 8:30 AM ET, Jobless Claims 8:30 AM ET
15 April 2016- Industrial Production 9:15 AM ET

Key Earnings:
11 April 2016- AA
12 April 2016- FAST, CSX, ADTN
13 April 2016- JPM, PIR
14 April 2016- BAC, BLK, DAL, PGR, TSM, WFC, AMD, CHKE
15 April 2016- C, RF, SCHW

April 7, 2016 Market Wrap Up

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The market continues to have a rough week thus far. Overall, the S&P 500 was down 1.2%, the Nasdaq -1.47%, and the Dow Jones Industrials -0.98%. Whether it’s profit taking ahead of earnings, or an overbought sentiment that caused the selling today, it’s still too early to say.

The VIX saw another spike today, closing up nearly 15%, at 16.16.

Despite weakness in the equity markets, crude oil was relatively stable. The United States Oil Fund (USO) was down less than one percent, however; it’s pared almost half those losses in the after hours session.

On the options front, we saw large call buying activity in Endo International (ENDP). In addition, we saw heavy put buying in Ross Stores, Inc. (ROST), which saw 14.7 times usual options volume.

Stocks in play included: Valeant Pharmaceuticals (VRX) +3.92%, Maximus, Inc. (MMS) -8%, Relypsa, Inc. (RLYP) +68%, and Tesla Motors (TSLA) -3.1%

There are no major domestic events scheduled for tomorrow.

April 5, 2016 Market Wrap Up

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The market was under a lot of selling pressure for most of the day. It all started last night, as Asian and European markets were both weak. The S&P 500 closed down more than 1%, making it two straight down days in a row.

The VIX shot up after hanging out in the low 13s…it’s now back above 15, as it closed the day 9.2% higher at 15.42.

On the options front, we saw large call buying activity in NeoPhotonics (NPTN). In addition, we saw heavy put buying in Big Lots (BIG), which was 7.3 times usual options volume.

Stocks in play included: Allegran (AGN) -15%, DragonWave (DRWI) +36%, and Tesla Motors (TSLA) +3.8%

In the after-hours, we saw a jump in crude oil prices following the American Petroleum Institute numbers. They reported a drop in crude inventories by 4.3m barrels. The United States Oil Fund (USO) is up more than 2% on that.

Here’s what’s on tap for the rest of the week:

Key Economic Data:
6 April 2016- EIA Petroleum Report 10:30 AM ET, FOMC Minutes 2:00 PM ET
7 April 2016- Jobless Claims 8:30 AM ET

Key Earnings:
6 April 2016- GPN, MON, STZ, APOG, APOL, BBBY
7 April 2016- CAG, KMX, RAD

Key Events:
6 April 2016- 2016 MRO Americas Conference (runs till 4/7)
7 April 2016- Cowen 2nd Annual Retail & Luxury Day

April 3, 2016 The Week Ahead

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The S&P 500 finished the week off on year-to-date highs. That’s more than 250 points higher than the February 11 lows. Even more impressive, the Nasdaq is up more than 14% from those February 11 lows.

The VIX closed the week at 13.10. These are clearly the lowest levels of the year. The belief is that the Fed may not be in a rush to raise interest rates, given global uncertainty. We should get a clearer picture after the FOMC minutes are released.

Crude oil finished the week lower, dislocating from equities, as they dropped more than 5% on the week. A couple weeks ago they were trading above $40 per barrel, however; they’re currently trading around $36.40.

Here’s what’s on tap for this week coming up…

Key Economic Data:
5 April 2016- International Trade in Goods 8:30 AM ET
6 April 2016- EIA Petroleum Report 10:30 AM ET, FOMC Minutes 2:00 PM ET
7 April 2016- Jobless Claims 8:30 AM ET

Key Earnings:
5 April 2016- WBA, DRI
6 April 2016- GPN, MON, STZ, APOG, APOL, BBBY
7 April 2016- CAG, KMX, RAD

Key Events:
5 April 2016- 2016 Healthcare Back-to-Basics Forum, 2016 MRO Americas Conference (runs till 4/7)
7 April 2016- Cowen 2nd Annual Retail & Luxury Day

March 27, 2016 The Week Ahead

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The S&P 500 finished the week slightly lower, however; continues to show resilience against a number of negative headlines. GDP numbers on Friday were taken well. This may induce some fear of an upcoming rate hike at the next FOMC meeting. Traders will be listening to FED members and their rhetoric as the date approaches.

The VIX is trading below 15, an indication that the market doesn’t have a whole lot of fear at the moment. Of course, it’s generally when we experience complacency, when we start to see volatility pick up. Are we there yet? We’ll just have to wait and see, but there isn’t much on the schedule in terms of earnings and economic events.

Crude oil finished the week relatively flat, however; it’s down about 5% over the last three trading sessions. Nonetheless, a very impressive move over the last month and a half, from mid 20s to near 40s.

Here’s what’s on tap for this week coming up, and Happy Easter from all of us at TVC.

Key Economic Data:
28 March 2016- International Trade in Goods 8:30 AM ET, Personal Income and Outlays 8:30 AM ET
30 March 2016- EIA Petroleum Report 10:30 AM ET
31 March 2016- Jobless Claims 8:30 AM ET
1 April 2016- Employment Situation 8:30 AM ET, ISM Manufacturing Index 10:00 AM ET

Key Earnings:
29 March 2016- LEN, PLAY
30 March 2016- MU, PAYX
31 March 2016- SONS
1 April 2016- BBRY

March 20, 2016 The Week Ahead

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The S&P 500 finished the week on it’s year-to-date highs. An impressive +13% run up from the February 11 lows. A pretty fast transition from panic selling to now almost panic buying. With that said, the VIX closed barely above 14, as we head into a shortened week of trading.

The markets will be closed on Friday, giving many reason to believe that we might continue to see this low volume rally continue.

Even more impressive, has been the run up in crude oil prices. It was another strong week of gains as we eclipsed $40 per barrel. We’re also sitting close to the 2016 highs in crude oil.

Another commodity that is near yearly highs is gold, with cash gold closing the week at 1255.04.

The market is anticipating low volatility, but here are some events to look out for:

Key Economic Data:
21 March 2016- Existing Home Sales 10:00 AM ET
23 March 2016- New Home Sales 10:00 AM ET, EIA Petroleum Report 10:30 AM ET
24 March 2016- Durable Goods Orders 8:30 AM ET, Jobless Claims 8:30 AM ET
25 March 2016- GDP 8:30 AM ET

Key Earnings:
21 March 2016- MFRM
22 March 2016- FIVE, NKE, RHT, SCS, XONE
23 March 2016- FRAN, GIS, KBH, PVH, RH
24 March 2016- TFM, GME, ACN, FINL, SIG

Key Conferences:
21 March 2016- Apple Product Event Launch, Howard Weil Energy Conference (runs till 3/23)
22 March 2016- Telsey Advisory Conference (runs till 3/23)

March 17, 2016 Market Wrap Up

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The phenomenal run in the stock market continued again today, as the S&P 500 flirted with going positive on the year. With that said, we’re now more than 12.5% higher than our year-to-date lows. It’s also worth noting that this run up has been done on below average volume.

Not to be overshadowed, crude oil is up more than 10% over the last two trading days. We’re now trading above $40 per barrel. That’s a move of more than 35% higher than our monthly lows.

The VIX closed 14.44, the lowest level we’ve seen in 2016.

On the options front, we saw large call buying activity in Sensata Technologies (ST). In addition, we saw heavy put buying in Nevro Corporation (NVRO), which was 3.2 times usual options volume.

Stocks in play included: Mallinckrodt (MNK) -4%, Valeant Pharmaceuticals (VRX) -11.4%, and FedEX (FDX) +11.8%

There are no major economic announcements or key events tomorrow, outside of some rebalances that will happen at the close.