This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

McDonald's and Netflix Headline Monday's Earnings

NEW YORK ( TheStreet) -- Today's buy-and-trade earnings previews cover two companies from the retail-wholesale, and one each in the computer and technology, consumer discretionary and finance sectors.

The stock market remains overvalued fundamentally but the technicals suggested new highs. This marks the third time this year that cycle highs could not be confirmed. When that happens new highs will likely follow, and that's the case except for Dow Industrials and Dow Transports.

As the Market Pulse below shows, Transports closed just below its Sept. 20 all-time intra-day high at 6754.81 with Industrials below its Sept. 18 all-time intra-day high at 15,709.59. Note the series of new highs set Thursday on five of the averages in the table.

The Nasdaq is above semiannual and monthly pivots at 3759 and 3830 and the Russell 2000 is above semiannual and monthly pivots at 1089.42 and 1092.46.

Monthly, semiannual and quarterly risky levels are 15,932, 16,490 and 16,775 Dow Industrials; 1746.4, 1743.5 and 1853.8 S&P 500; 4025 Nasdaq; 6811, 7104 and 7205 Dow Transports; and 1163.21 Russell 2000.

The ValuEngine valuation warning continues with 77.7% of all stocks being overvalued, 44.6% by 20% or more. In addition, 15 of 16 sectors are overvalued -- 14 by double-digit percentages, nine by 21.1% to 26.5%.

The retail-wholesale sector is 26.5% overvalued with an overweight rating; 80.3% of the 351 stocks in this sector have buy or strong buy ratings.

The computer and technology sector is 24.4% overvalued with an overweight rating; 47.5% of the 1160 stocks in this sector have buy or strong buy ratings.

The consumer discretionary sector is 23.7% overvalued with an equal-weight rating; 91.5% of the 405 stocks in this sector have hold ratings.

The finance sector is 19.9% overvalued with an equal-weight rating; 80.9% of the 3061 stocks in this sector have hold ratings.

Two of the five stocks in today's table have buy ratings and three have hold ratings. All five are overvalued, with one overvalued by 113.3%. All five have gains over the last 12 months one up 381.8%. Only one stock is below its 200-day SMA with four above, which reflects the risk of reversion to the mean.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ZION $27.00 2.20%
HAS $62.57 2.52%
MCD $97.88 0.95%
NFLX $422.57 1.88%
TXN $58.00 2.18%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs