10 Nov
Daily Market Commentary

Week-In-Review: Stocks Snap 8-Week Win Streak

Stocks (Finally) Snap 8-Week Win Streak

Remember, ladies and gentlemen, stocks do not go up forever. Even in very strong bull markets (present market included) it’s perfectly normal (and healthy) to see the market pullback and digest a recent rally. Last week, the major indices ended lower and the benchmark S&P 500 and Dow Jones Industrial Average both snapped a very strong 8-week win streak. One relatively small down week after 8 strong up weeks is perfectly normal – and healthy. The key now is to analyze the health of this pullback to see if it turns into another small/healthy pullback or something more severe. The first big level of support to watch for the major indices is the 50 day moving average line. As long as the market stays above that level, the bulls remain in clear control. I welcome this pullback with open arms and will look to buy the bounce after this pullback is over.

Mon-Wed Action:

Stocks closed at fresh record highs on Monday after Broadcom (AVGO) offered to buy Qualcomm (QCOM) for $70 a share. If completed, the deal would be the largest tech deal – ever. Separately, shares of Advanced Micro Devices ($AMD) jumped on deal making news and Disney (DIS) hinted it would want to acquire 21st Century Fox (FOX). Stocks fell on Tuesday after financials dragged the market lower. Separately, shares of Priceline (PCLN) gapped down after reporting earnings. Overnight, Democrats won a few big races which put some pressure on the GOP. Financials and junk bonds (JNK) continued to fall which put pressure on the market. Financials are under pressure from a flattening yield curve. Stocks edged higher on Wednesday.

Thur & Fri Action:

On Thursday, the Dow fell as much as 250 points intra-day (but ended down 101 points) – after fear spread that the tax bill will be delayed. The small-cap Russell 2000, has been under pressure recently because small-cap companies have more to gain from an immediate domestic tax cut since they are more likely to be U.S.-based and not have a huge multi-national footprint. Stocks were relatively quiet on Friday as the market digested a busy week of data.

Market Outlook: Bulls Are Strong

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

08 Nov
Media Quotes

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.
Link:
https://www.reuters.com/article/us-usa-stocks/dow-edges-up-to-record-high-financials-dips-idUSKBN1D71ND

03 Nov
Daily Market Commentary

Week-In-Review: Stocks Rally On Strong Economic & Earnings Data

Stocks Rally On Healthy Earnings and Economic Data

The market ended mostly higher last week as investors digested a slew of earnings, economic and central bank data. First, nearly every major central bank in the world continues its easy money stance. Even though the Fed, and a few other central banks, began raising rates, rates are still extremely low and they are doing so at a very measured (a.k.a. slow) rate. Also, if the market, or the economy, deteriorates, one would expect global central banks to stop raising or actually lower rates (depending on how steep the market/economy declines). That phenomenon is also known as the central bank put. That has been the prevailing bullish logic since the financial crisis. Second, economic data remains healthy as the market is now hoping for a big tax cut that will stimulate the economy. Finally, earnings continue to come in above estimates and that is another net positive. Stepping back, I know the market is extended to the upside so I wouldn’t be surprised to see another near term pullback unfold. Remember, eventually, this very strong bull market will end, but until it does, there is no point in fighting it.

Mon-Wed Action:

Stocks fell on Monday after Robert Mueller indicted Paul Manafort and Manafort’s right hand man. The charges against Mr. Manafort came from before he was the head Trump’s campaign. But they are serious nonetheless. Stocks largely pulled back on Monday to digest Friday’s very strong rally. Tuesday was the last day of October and the Dow & S&P 500 both enjoyed their 7th straight monthly gain. In fact, over the past year, the Dow & S&P 500 have been up 11 of the past 12 months. That is exceptionally strong. On Wednesday, stocks were quiet as the Fed decided to hold off and raise rates later in the year. That was largely expected so it was a non-event.

Thur & Fri Action:

Stocks were relatively quiet on Thursday as investors continued to digest a slew of data. According to Reuters, earnings remain strong. So far, close to 75% of the companies that have reported earnings have beat estimates, while 67% have surpassed sales estimates. Before Friday’s open, the Labor Department said, U.S. employers added 261k new jobs last month, missing estimates for 325k. Meanwhile, the unemployment rate slid to 4.1% which beat estimates for 4.2%.

Market Outlook: Bulls Are Running

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

02 Nov
Daily Market Commentary

CNBC Asks Adam About The New Fed Chair

Thursday, November 2, 2017

Stocks gyrate as Wall Street digs through details of tax reform bill

  • The S&P 500 traded off its lows as a sharp gain in the financials sector helped the index pare earlier losses.
  • The plan would cut mortgage interest deductions in half. However, it would keep retirement savings plans like the popular 401(k) intact.
U.S. equities gyrated on Thursday as investors examined the details of the tax-reform plan proposed by Republicans.
The plan would permanently lower the corporate tax rate to 20 percent. It would also keep retirement savings plans like the popular 401(k) intact.
The Dow Jones industrial average traded 31 points higher after briefly falling 84 points. Shares of Travelers were the best-performers on the 30-stock index.
“People are building their frameworks, but no one knows where this is going to go,” said Jeremy Bryan, portfolio manager at Gradient Investments.
The S&P 500 traded off its lows as a sharp gain in the financials sector helped the index pare earlier losses. Shares of Allstate were among the best-performing stocks in the financials sector.
Shares of T. Rowe Price, meanwhile, jumped to trade 1.7 percent higher as asset managers reacted positively to the 401(k) news.
Symbol
Name
Price
Change
%Change
DJIADow Jones Industrial Average23457.59
22.580.10%
S&P 500S&P 500 Index2574.64
-4.72-0.18%
NASDAQNASDAQ Composite6707.79
-8.75-0.13%
Yet, the plan would also cut mortgage interest deductions in half and then hit homebuilder and consumer-related shares. Also, it lowers the tax rate on repatriated cash to 12 percent.
Homebuilder stocks took a hit, with the SPDR S&P Homebuilders exchange-traded fund (XHB) sliding 2.4 percent. Shares of Toll Brothers fell 5.6 percent, while M.D.C. Holdings pulled back 10.2 percent.
The Nasdaq composite slipped 0.1 percent as tech investors were left disappointed with the 12 percent rate on repatriated cash. A lot of big tech companies have scores of cash outside of the U.S.
“The market sees this as a disadvantage to consumption in favor of more long-term investments,” said Jack Ablin, chief investment officer at BMO Private Bank. “Consumption is a short-term endeavor while investment is more long-term.”
The full bill was released Thursday morning. President Donald Trump touted this as “the biggest tax event in the history of our country” on Tuesday.
“Nothing is easy, however, and there is still tension over what tax provisions can be limited or eliminated to offset aggressive cuts in marginal corporate and personal rates. A balance will need to be struck,” Steve Blitz, chief U.S. economist at TS Lombard, said in a note.
The increasing prospects of tax reform have recently helped U.S. stocks reach record levels.
Phil Blancato, CEO of Ladenburg Thalmann Asset Management, said “the market still doesn’t believe tax reform will get done this year,” however. “There are too many Senate Republicans that are not behind this plan.”
Top White House economic advisor Gary Cohn said Trump would support the bill so long as it preserves key elements.
Investors also awaited to see who will be the next Fed chair. Trump is expected to make his announcement later on Thursday, with most expecting the president to tap Fed Governor Jerome Powell for the position.
“Powell is dovish. The current Fed chair, Janet Yellen, is dovish. I think the market has priced in a dovish Fed chair,” said Adam Sarhan, CEO of 50 Park Investments. “Central banks are slowly raising rates, but they are still very low relative to historical levels.”
Wall Street also kept an eye on earnings after tech giant Facebook posted better-than-expected quarterly results. Facebook reported adjusted earnings per share of $1.59, well above the expected $1.28.
Companies set to report Thursday after the bell include Apple, Starbucks and CBS.
Overall, earnings have mostly outperformed expectations this season, adding to the stock market’s already strong gains for the year. As of Thursday morning, nearly 74 percent of the companies that have reported have surpassed earnings expectations, according to FactSet.

LINK: https://www.cnbc.com/2017/11/02/us-stocks-fed-chair-tax-reform.html

28 Oct
Uncategorized

Reuters Asks Adam About Cloud Computing

Cloud computing drives massive growth for big U.S. tech firms

SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O), Alphabet Corp’s (GOOGL.O) Google and Intel Corp (INTC.O) are all putting their chips on the cloud computing business, and it is booming.

All four companies posted stellar quarterly earnings on Thursday, showing the strength of the shift in corporate computing away from company-owned data centers and to the cloud.

Microsoft’s Azure business nearly doubled, with year-over-year growth of 90 percent. The company does not break out revenue figures for Azure, but research firm Canalys estimates it generated $2 billion for Microsoft.

“The move to the cloud was one we felt Microsoft could always benefit from, and they’re showing us that they can,” said Kim Forrest, vice president and senior equity analyst at Fort Pitt Capital Group, a portfolio management firm.

Highlighting the quarter for Microsoft was a deal securing retailer Costco (COST.O) as an Azure customer. That came just two months after the close of Amazon’s acquisition of grocery chain Whole Foods, which has heightened unease among retail and e-commerce companies about working with Amazon, said Ed Anderson, an analyst with Gartner.

Tim Green, analyst with the Motley Fool, said Amazon could find it needs to make changes at some point at Amazon Web services. “Spinning off AWS at some point down the road might become necessary to prevent an exodus of customers,” he said.

Amazon Web Services is still delivering far more revenue than any of its peers. For the quarter, AWS raked in nearly $4.6 billion — a year-over-year increase of 42 percent. AWS may have missed out on Costco, but the company secured deals with Hulu, Toyota Racing Development, and most notably, General Electric.

Google Cloud Platform landed deals with the likes of department store retailer Kohl’s and payments processor PayPal. Like Microsoft, Alphabet does not break out revenue for Google Cloud Platform, but Canalys estimates the business generated $870 million in the quarter, up 76 percent year-over-year.

Google Chief Executive Officer Sundar Pichai said Google Cloud Platform is a top-three priority for the company. He said Google plans to continue expanding its cloud sales force.

Canalys estimates the cloud computing market at $14.4 billion for the third quarter of 2017, up 43 percent from a year prior. Amazon holds 31.8 percent of the market, followed by Microsoft at 13.9 percent and Google with 6 percent, according to Canalys’ estimates.

The “cloud market will keep growing faster than most of the traditional information technology segment, as the market is still in the developing stage,” said Daniel Liu, research analyst with Canalys.

Reflecting the overall growth of the market was the strong performance by Intel, which sells processors and chips to cloud vendors. In July, Intel launched its new Xeon Scalable Processors, which drove 7 percent year-to-year growth for the company’s data center group.

The big three cloud vendors also benefit from the decision by many enterprises to build their applications using more than one cloud vendor. Retailers Home Depot Inc (HD.N) and Target Corp (TGT.N), for example, told Reuters they use a combination of cloud providers.

“Our philosophy here is to be cloud agnostic, as much as we can,” said Stephen Holmes, a spokesman for Home Depot, which uses both Azure and Google Cloud Platform.

Some analysts expect cloud services growth to slow over time as competition increases.

Amazon, for instance, has said that price cuts and new products with lower costs on average are a core part of its cloud business. Additionally, Amazon Web Services saw usage growth outpacing that of revenue growth, said Amazon Chief Financial Officer Brian Olsavsky.
“Going forward, cloud services will become more of a commodity, and the prices will quickly compress,” said Adam Sarhan, CEO of 50 Park Investments, an investment advisory service. “For now though, it’s a great business with plenty of room for all to grow.”
Link: http://www.reuters.com/article/us-cloud-results/cloud-computing-drives-massive-growth-for-big-u-s-tech-firms-idUSKBN1CW05H

27 Oct
Daily Market Commentary

Week-In-Review: Stocks Rally On Healthy Earnings and Economic Data

Stocks Rally On Healthy Earnings and Economic Data

It was another solid week on Wall Street as investors digested a slew of earnings and economic data. The major indices overcame a mid-week sell-off and ended higher after several well-known tech stocks reported strong numbers and GDP beat estimates. Buyers showed up on Friday after: Alphabet, Amazon, and Microsoft were some of the well-known stocks to report strong numbers last week. On the economic front, GDP grew by 3% last quarter, beating the Street’s estimate for a gain of +2.5%. The major indices continue acting very well and the fact that they refuse to pullback in a meaningful fashion continues to illustrate how strong the bulls are right now.

Mon-Wed Action:

Stocks fell on Monday as the Dow snapped a 6-day winning streak and GE posted its largest single day decline in 6 years. Hasbro (HAS) also gapped down after reporting disappointing numbers. On Tuesday, the Dow rallied 168 points after the latest round of earnings were released. Caterpillar (CAT), 3M (MMM) and McDonald’s (MCD) were some of the stocks that rallied after reporting solid numbers. On Wednesday, The Dow fell 112 points which was the largest single day decline since September 5, 2017. Shares of Chipotle Mexican Grill (CMG) plunged nearly 14% after reporting earnings.

Thur & Fri Action:

Stocks rallied on Thursday after the latest round of earnings were announced. Twitter’s (TWTR) stock soared nearly 19% after reporting earnings. Ford (F) was another big winner after reporting earnings. After the close, a slew of big tech stocks reported numbers and mostly beat estimates. On Friday, the Nasdaq enjoyed its largest single day rally since the Nov 2016 election! Amazon (AMZN), Alphabet (GOOGL), Intel (INCT), and Microsoft (MSFT) were some of the big tech stocks that gapped up after reporting earnings. On the economic front, GDP grew by 3% last quarter, easily beating the Street’s estimate for a gain of 2.5%.

Market Outlook: Bulls Are Running

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

20 Oct
Daily Market Commentary

Week-In-Review: Stocks Soar On Earnings & Tax Optimism

Stocks Race Higher As Earnings Season Kicks

Stocks soared last week on renewed hope of a tax cut and the vast majority of earnings (that were announced) beat estimates. The market went from being extended to being very extended as buyers continued to show up and aggressively accumulate stocks. From any normal perspective, the market is way over due to pullback but the fact that it refuses to pullback illustrates how strong the bulls are right now. In fact, the largest decline in the S&P 500 has only been -3% in the past year, which is extremely shallow on a historical perspective. Eventually, the market will decline but until it does, the bulls deserve the benefit of the doubt. Just keep in mind, in the short-term, we are way over due to pullback.

Mon-Wed Action:

Stocks rallied on Monday as investors waited for a slew of earnings to be released this week. After the bell Netflix reported earnings and before Tuesday’s open Goldman Sachs and Morgan Stanley both reported earnings, among a slew of other companies. Crude oil jumped on geo-political tensions in parts of Iraq. Separately, the GOP is pushing hard to get a tax cut done later this year. On Tuesday, the Dow Jones Industrial Average crossed above 23,000 for the first time. The index first closed above 22,000 on Aug. 2. UnitedHealth, Johnson and Johnson, Goldman Sachs and Morgan Stanley were some of the well-known stocks that reported earnings on Tuesday.
Stocks soared on Wednesday as buyers continued to send stocks racing higher. IBM was the big name stock that gapped up after reporting earnings. In D.C, Treasury Secretary Steven Mnuchin pushed hard for the tax reform to get passed and said the stock market will see a “significant” drop if tax reform is not passed. Mnuchin said, “There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done.”

Thur & Fri Action:

Thursday marked the 30 year anniversary of the Oct 19, 1987 crash. Just to put that crash in perspective the Dow plunged 508 points or 22.6% in one day. That would roughly equal 5,000 points today! Overnight, Hong Kong stocks fell -2% which triggered a wave of selling in thinly traded overnight futures markets. Before Thursday’s open, Dow futures were down triple digits but the Dow barely lost ground by the close. Shares of Apple (AAPL) gapped down after a report was released that sales of the iPhone 8 was weaker than expected. Stocks soared on Friday as hope spread on the tax cut.

Market Outlook: Bulls Are Back In Control

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

16 Oct
Media Quotes

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:
https://www.nytimes.com/reuters/2017/10/16/business/16reuters-stocks-blackberry.html

13 Oct
Daily Market Commentary

Week-In-Review: Stocks Perched Near Record Highs As Earnings Season Begins

Stocks Perched Near Record Highs As Earnings Season Begins

The market was relatively quiet last week as earnings season officially began. The major indices remain perched below record highs as the bulls continue to dominate the landscape. The fact that there remains virtually no selling is a net positive for the bulls. In the short-term, the market is extended to the upside and a light pullback would do wonders to restore the health of this very strong (and very long) bull market. Meanwhile, the intermediate and long-term outlook remains extremely bullish (for now). Eventually, that will change but until it does, weakness should be bought, not sold.

Mon-Wed Action:

Stocks fell on Monday as the Nasdaq snapped a 9-day winning streak. Wall Street paused ahead of earnings season. Looking forward, analysts expect S&P 500 earnings are expected to grow by 4% on a year-over-year basis, according to data from S&P Capital IQ. In Q1 and Q2 2017, earnings grew +15.5% and +10.8%, respectively. Stocks were relatively quiet on Tuesday as investors waited for earnings season to begin. Stocks were quiet on Wednesday after BlackRock (BLK) and Delta (DAL) reported earnings. ​The FOMC released the minutes of its latest meeting and basically said they will raise rates again in December.

Thur & Fri Action:

Stocks opened higher but closed lower on Thursday as investors digested the latest round of earnings from JP Morgan ($JPM) and Citigroup ($C). Separately, Bitcoin surged to a fresh record high above $5,300 which is a classic sign of a big bubble. IMF Managing Director Christine Lagarde told CNBC “I think that we are about to see massive disruptions from cryptocurrencies.” Lagarde, also didn’t rule out the IMF developing its own digital currency. Turning back to earnings, CNBC reported that historically, this earnings season has been the best one for investors. Using hedge fund analytics tool Kensho, CNBC found the S&P 500 posts a gain of 2.3 percent on average 30 days after third-quarter earnings season begins, trading positive 79 percent of the time. Stocks were quiet on Friday after Bank of America (BAC) and Wells Fargo (WFC) were some of the big companies that reported earnings.

Market Outlook: Bulls Are Back In Control

The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

09 Oct
Media Quotes

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.
 

Link:
https://www.cnbc.com/2017/10/09/us-stocks-tech-record-highs-netflix.html

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