Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Increasing SPY, SBUX Shorts, AGN Long
Originally published Jan. 27 at 2:34 p.m. EDT
Note: Ford was raised to Outperform by RBC Capital this morning (with a $14 price target).
Position: Long AGN, F; short SPY, SBUX, GM.
My Takeaways and Observations
Originally published Jan. 26 at 4:08 p.m. EDT
"The Dow hit 20,000 and I am proud of it ... Now we have to go up, up, up. It's gone up a lot since I won. We hit a number that has never been hit before. So, I am very honored."
--President Donald Trump, ABC interview Wednesday night
If the market craters, will the President take responsibility? Raise your hand if you think he will... I thought so--no hands.
Another win for the bulls as Mr. Market traded well in light of the magnitude of the recent advance.
At 3:45 p.m. near the day's low--but not much movement.
I am getting this out early because there is a lot of EPS announcements to digest after the close.
I remain a Midnight Rider.
Housing hits a speed bump--and Hanson called it.
My plans for the yellow metal.
Radian ( RDN) EPS in line, more in the next or two.
- The U.S. Dollar strengthened.
- The price of crude oil rose by over one dollar to $53.78/barrel.
- Gold fell by -$8.60 to $1189.
- Ag commodities: wheat +2.50, corn -2.50, soybean -7 and oats -5.5.
- Lumber increased by $1.50.
- Bonds rallied in price after an early morning spill. Yields dropped by two basis points.
- The yield curve was flat.
- Municipal bonds were flat, as were closed end muni bond funds.
- Junk was unchanged, Blackstone/GSO Strategic Credit Fund (BGB) - Get Report down $0.03.
- Banks prospered, though Citigroup (C) - Get Report was lower.
- Insurance was mixed after a Metlife (MET) - Get Report downgrade.
- Brokerages solid, led by GS (short and on Best Ideas List).
- Big pharma continues out of favor after large downside at Bristol-Myers (BMY) - Get Report . Johnson & Johnson (JNJ) - Get Report continues weak, after M&A announcement.
- Retail continues to underperform and the possible 20% tariff from Mexico (that Sean Spicer just mentioned) won't help. Nor will the possibility of a Sears (SHLD) bankruptcy (plenty of discounted merchandise could cause some indigestion over the next few months.
- Old media was mixed, awaiting Microsoft (MSFT) - Get Report EPS this afternoon.
- Biotech continued its fade led by Allergan (AGN) - Get Report , Celgene (CELG) - Get Report and Gilead Sciences (GILD) - Get Report . Speculative biotech also got hit.
- Consumer staples faltered despite the currency weakness. Campbell Soup (CPB) - Get Report and Procter & Gamble (PG) - Get Report lower, along with Coca-Cola (KO) - Get Report (which seems to have gathered some technical bulls lately -- I remain short, small).
- Comcast (CMCSA) - Get Report led a stronger media group. Up on EPS and buyback.
- Autos clobbered by possibility of Mexican tariffs and more pressure to manufacture in the U.S.
- Home builders a bit higher, but well off the highs after the weak new home sales report.
- Ag equipment was lower after weak guidance from Caterpillar (CAT) - Get Report .
- (T)FANG mixed after recent strong absolute and relative performance. Alphabet (GOOGL) - Get Report (pre EPS) and Tesla (TSLA) - Get Report lower.
Here are some value-added contributions on our site today:
1. Jim "El Capitan" Cramer on how far we have come.
Ed Ponsi "scheme" invokes Madonna!
3. Dan Dicker does Goldman Sachs (GS) - Get Report . (I respectfully disagree with his conclusion on Dodd-Frank)
4. Mike Norman pounds it.
5. Tim "not Judy or Phil" Collins on missing out and fear.
Long: HIG large, CPB large, RDN, SQQQ small, SDS
Short: SPY, QQQ, IWM small, CAT, MET, GS small, C small
Position: See above.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AGN, GOOGL, SBUX, CMCSA and C.