S&P 500 Overview: Battle for 2800
- Outside day on S&P 500, biggest range (49 points) since January 4
- MACD slowing, stochastic has been overbought.
- Breadth still mostly positive, led by risk-on sectors like financials and technology.
- New leadership potentially emerging.
- Market could churn like April-June 2016, waiting for 50DMA to cross through 100DMA.
Health Care Haves and Have Nots
- Haves: Biotechs amid takeovers
- Haves: Medical devices
- Haves: Potential hospital turnarounds
- Have Nots: Pharmacy-benefits
- ABC, MCK, CAH at risk?
- Have Nots: Generic drug makers
- Have Nots: Health insurers
- Closely held Purdue Pharma may seek Ch. 11
Group in Focus: Sneakers & Footwear
- Foot Locker (FL) filling May 2017 bearish gap after strong results.
- Skechers USA (SKX) running since February 8 earnings.
- China / Asia new growth market.
- Nike (NKE) reports after the close on March 21.
- Genesco (GCO), parent of Journeys and Lids, due on March 14.
Economy: Good or bad?
- Positive: Dovish Fed
- Positive: GDP still shows business investment
- Positive: Signs of housing rebound like mortgage applications, pending home sales, NAHB survey
- Negative: ISM manufacturing lowest reading of Trump presidency
- Negative: Jobless claims trending higher
- Negative: Rail traffic starting to contract
Don’s Watch List
- Salesforce.com (CRM): Software giant reports tonight.
- Kohl’s (KSS): Retailer reports tomorrow morning.
- Target (TGT): Retailer reports tomorrow morning.
- Ross Stores (ROST): Retailer reports tomorrow night.
- Crocs (CROX): Footwear maker reports Thursday morning.
- Costco (COST): Warehouse retailer reports on Thursday morning.
- Marriott (MAR): Hotel giant reports Thursday night.
Russell’s Watch List
- Facebook (FB): Potential to escape tight range after strong earnings
- Chips may struggle amid China uncertainty.
- Community Heath (CYH): Short-squeeze potential
- CVS, WBA, TEVA: Debt-laden downside risk.
- Pinduoduo (PDD): New China tech testing new highs
- Array Biopharma (ARRY): Oncology name to watching / wait for pullback
- February 27: Good news sneaks out for energy sector
- February 28: Consumer comebacks & new tech breakouts
- February 28: Big tech stocks remained favorites among TradeStation clients last month.