Good morning and happy holidays! I hope you got your fill of Santa Claus yesterday because the official start of the “Santa Claus rally” on Wall Street is falling flat so far.
Friday marked the official start of the rally, and the major market indices all finished relatively ho-hum.
The situation is similar after the open this morning, with the Dow Jones Industrial Average flat, S&P 500 off 0.07% and Nasdaq-100 down 0.54%.
What’s more, options volume on Friday was among the lowest totals of the year. Only about 13.3 million calls and 10.6 million puts changed hands on the session. The CBOE single-session equity put/call volume ratio rose to 0.64 and the 10-day moving average ticked higher to 0.57.
Taking a closer look at Friday’s options activity, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Nvidia Corporation (NASDAQ:NVDA) were smacked lower after cryptocurrency prices plunged as much as 30% on the session. Meanwhile, Time Warner Inc (NYSE:TWX) call options were once again popular after the merger deadline with AT&T Inc (NYSE:T) was pushed back to June.
how to day trade: Staples, Inc.(SPLS)
- [By Money Morning Staff Reports]
Since 2011, Staples Inc. (Nasdaq: SPLS) has cut 16% of its full-time U.S. workforce — down to 44,000 from 53,000 employees five years ago.
During that same period, the company’s annual sales declined a whopping 9% — down to $22.5 billion from $24.7 billion.
- [By Casey Wilson]
The company was set to merge with its last remaining rival, Staples Inc. (Nasdaq: SPLS), this year, but was denied by a federal judge on May 10 because of antitrust concerns.
- [By Ben Levisohn]
Staples (SPLS) soared to the top of the S&P 500 today on reports that the office-supplies retailer was considering selling itself.
Agence France-Presse/Getty Images
Staples gained 9.8% to $9.51 today, while the S&P 500 ticked up 0.1% to 2,360.16.
CFRA’s Efraim Levy doesn’t see a “natural buyer” for Staples but remain Buy rated anyway:
Shares are higher on an unconfirmed WSJ report that SPLS is looking at the possible sale of the company. Our fundamentally valued 12-month target of $11, applies a below historical average P/E of 12.1X our FY 18 EPS estimate, given office industry challenges. Our target has 11% upside, plus a 5.5% yield. We don’t see a natural buyer for a large physical store office supply presence, although an activist/private-equity buyer is a possibility. To make an acquisition worthwhile, a buyer would have to be more aggressive in cost cutting and use of cash flow than SPLS’s existing plan.
Staples’ market capitalization rose to $6.2 billion today from $5.7 billion yesterday. It reported a net loss of $459 million on sales of $18.2 billion in fiscal 2017.
how to day trade: Hertz Global Holdings Inc(HTZ)
- [By Dan Caplinger]
The stock market continued to climb sharply on Wednesday, sending major market benchmarks to record highs yet again and propelling the Dow Jones Industrials up more than 100 points. Economic data continued to support the notion that the U.S. economy remains strong, and rising inflation levels led many to conclude that the Federal Reserve is more likely than ever to follow through on its promise to keep lifting short-term interest rates in 2017. Rising bond yields reflected investors’ reluctance to hold onto fixed-income investments in anticipation of higher rates, prompting some to shift assets into the stock market. Several companies also reported, andFortress Investment Group (NYSE:FIG), Editas Medicine (NASDAQ:EDIT), and Hertz Global Holdings (NYSE:HTZ) were among the top performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so well.
- [By Paul Ausick]
Hertz Global Holdings Inc. (NYSE: HTZ) posted a new 52-week low of $11.78 on Tuesday, down about 21% compared with Monday’s closing price of $14.91. The stock’s 52-week high is $53.14. The range is based on a 1-for-15 reverse split effective last July. Volume totaled around nearly 28 million shares, more than 8 times the daily average of 3.4 million. The company reported dreadful earnings this morning.
- [By Daniel Sparks]
Shares of rental car company Hertz (NYSE:HTZ) fell as much as 11.7% on Thursday after analysts at Morgan Stanley cut its price target for the stock from $15 to $12. Shares closed the trading day down about 11.4%.
how to day trade: Ternium S.A.(TX)
- [By Matthew DiLallo]
Shares of Ternium SA (NYSE:TX) jumped on Wednesday: up more than 10% by 2:30 p.m. EST. While the steelmaker reported weaker-than-expected earnings after the closing bell yesterday, it provided optimistic guidance and announced a compelling acquisition.
how to day trade: Tarena International, Inc.(TEDU)
- [By Monica Gerson]
Tarena International Inc(ADR) (NASDAQ: TEDU) is estimated to post a quarterly loss at $0.03 per share on revenue of $39.35 million.
Ituran Location and Control Ltd. (US) (NASDAQ: ITRN) is projected to post earnings for the recent quarter.
- [By Lisa Levin]
Tarena International Inc(ADR) (NASDAQ: TEDU) shares dropped 23 percent to $14.24. Tarena International reported Q2 earnings of RMB$1.00 per share on sales of RMB$455.83 million. Nomura downgraded Tarena from Buy to Neutral.
how to day trade: CYS Investments, Inc.(CYS)
- [By Amanda Alix]
As the spread between short-term and long-terminterest rates began to contract, strangling profits, competition for MBSes also caused prices to rise. Other agency mREITs were nervous, too. CYS Investments (NYSE: CYS ) noted at the time that QE3 turned the Federal Reserve into the sector’s biggest rival for mortgage bonds, and as spreads began to shrink, so did dividends. By December of last year, Annaly, Armour, and Capstead Mortgage (NYSE: CMO ) had all trimmed their payouts.