Indices closed down.
S&P 500 @ 2643.69, low 2641.59, high 2695.68
RSI @ 35.72
CMF @ -0.092
Internals were :
Down volume led by 9.52 to 1 in NYSE & 3.60 to 1 in Nasdaq
Declining stocks led by 4.51 to 1 in Nasdaq & 4.09 to 1 in Nasdaq
Net new 52 wk lows were leading by 104 in NYSE & 23 in Nasdaq
VIX UP 30.68% @ 23.34
Oil @ $64.30
Gold @ $1327.40
AH Futures Down
AH Asian Markets Down
AH Oil & Gold UP
MU reported a beat in Sales and EPS and raising guidance for Q 3, this after raising guidance few weeks back .Gross margin is @ highest level and guiding @ highest gross margin. Conference call was most optimistic about MU current and future business trend.
Q 2 Sales actual $7.35 billion, estimate $7.28 billion
Q 2 EPS actual $2.82, estimate $2.74
Q 3 Sales guiding $7.40 billion , estimate $7.27 billion
Q 3 EPS guiding $2.83, estimate $2.63
Reward for all of the above..Down AH 4.01% ???
About market, TAPE was under extreme selling pressure which persisted until close, Dow down 724.42 points, S&P 500 Down 68.24 & Nasdaq down 178.61 points, all indices below 50 DMA, S&P 500 and Dow getting close to 200 DMA. Tonight China has a list of 128 imported items from US they want to retaliate with tariff, Pork is being mentioned as one of them. This trade war is going to take a toll on stock market.
BLOG does NOT give buy or sell.
Saleem
6 comments:
Hi Saleem,
I thought the commentary on the MU conference call about further increased NAND global capacity growth, high end capex guidance, and the temporary DRAM production problem were negatives. Despite these negatives, the earnings and revenue guidance were still very strong, and the story for almost explosive memory demand growth continues.
I am always fearful of "peak" earnings, but I think we are probably ok still. The stock may rest though due to the high expectations and stock appreciation recently. Also, if tech remains weak it could be vulnerable to pullback.
Stocktrader
Hi Stocktrader,
Thanks for your take on MU report and cc.
Production issue was temporary and they will be back in full production this week, already factored in guidance which is above.
BUT.....price action is controlled by others....
Great earnings and guidance may mean nothing....
Saleem
Hi Saleem,
I really like energy here, looking at HAL today after great earnings last quarter and oil picking back up as is seasonally usual.
Stocktrader
Hi Stocktrader,
YES...energy is entering high consumption season....
Good luck with HAL....
Saleem
Hi Saleem,
Reluctantly sold NVDA @ 237.80 to make room for HAL
Bought HAL @ 46.70
Stocktrader
Hi Stocktrader,
Good luck with HAL.....diversification works.
Saleem
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