Michael Kramer and the clients of Mott Capital own Apple
U.S. Markets
S&P 500 futures: +14 Points
10-Year Yields: 2.72%
Dollar index: 95.85
Oil: $53.77
Vix: 19
International Market
Hong Kong HSI: +40bps
Shanghai: -72bps
Japan Nikkei: -52bps
Korea KOSPI: +1.05%
UK FTSE +1.27%
German DAX -27bps
10-Year German Bund 0.19%
10-Year JGB 0.001%
Key Events:
- Apple reported better than expected EPS of $4.18 per share, better than estimates of $4.17 per share. You can read our recap here.
- Theresa May will head back to Brussels to renegotiate a Brexit deal.
- FOMC Rate Decision at 2 PM followed by a press conference
- Earnings:
- Wednesday PM
- Microsoft
- Tesla
- PayPal
- Visa
- Thursday AM
- GE
- Mastercard
- UPS
- Thursday PM
- Amazon
- Cypress Semi
- Friday AM
- Exxon
- Chevron
- Wednesday PM
International Market
Hong Kong continues to trend higher and appears to be working its way towards 28,230
KOSPI
The South Korea KOSPI is now at a critical point, as it has finished filling the gap, and is now facing a turning point. Should it break out, it could signal a rise to around 2,280. However, if it fails to break out, it could fall to roughly 2,130. We will want to continue to watch this one.
The international markets have been mainly a good indicator for the future direction of the US equity markets of late. Additionally, we want to see money continue to flow into the market around the globe.
U.S.
The action for the equity market happens at 2 PM with the FOMC rate decision. It widely anticipated that the FED will NOT Raise today. Additionally, the tone of the announcement will be critical, as investors will be looking for a signal that the Fed plans to pause its policy of hikes. Additionally, investors will pay pretty close attention to the dot plots, and commentary around the balance.
Most of important to watch is the bond and currency market for the correct signals, not the equity market.
S&P 500 (SPY)
Equity futures are pointing to a higher open on the S&P 500. For now, resistance on the S&P 500 is around 2,660.
Apple (AAPL)
This morning Apple is trading just below a resistance level at $164.15. Should the stock rise above that price level, it could go on to rally to about $182.
AMD
AMD is trading higher by about 10%, recouping nearly all of its loss after the Nvidia news. The stock appears to be trying to break out again at $21.80. The stock could climb to around $24.
AT&T (T)
AT&T reported results that looked pretty dreadful. The company said revenue missed estimates, with an earnings beat. But its DirecTV unit continues to lose subscribers, with the satellite business losing 403,000 subscribers and DirecTv Now losing 267,000 subscribers. Not good! The stock is trading slightly lower by about 2% today; I think it is likely to be down more. It could be heading back to $27.40.
Alibaba (BABA)
Alibaba is jumping some today after reporting better than expected earnings. $166 continues to be resistance.
JD
JD is also rising and appears to be breaking out and could be heading to $26.
Boeing (BA)
Boeing blew out its earnings and revenue easily topped estimates. The company also guided full-year 2019 well ahead of forecasts to $20.00 per share at the mid-point versus estimates of $18.40. The company is guiding revenue to $110.5 billion at the mid-point versus estimates of $106.72 billion. The stock is jumping 6% pre-market and is breaking out, rising above resistance at $370.
Good Luck today
-Mike
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