Daily Stock Market Summary: Yesterday, we noted that the past week’s bull-run was the first sustained sign of market confidence in weeks. We also noted, however, that “core concerns for many analysts, chiefly the price dynamics of a peak business cycle environment, still linger.” Indeed, some of those concerns are coming home to roost today.
All major indexes are down markedly at the time of this writing, trading mostly even after a weak opening. An uptick in US manufacturing data caused a surge in interest rates (with investors reasoning that accelerating production will force the US Federal Reserve to accelerate its planned pace of rate hikes). US Treasuries are now trading above the 3% level, often invoked as a symbolic upper end to a low-interest rate environment.
Meanwhile, investors appear concerned with results from Home Depot (NYSE:HD), a stock often seen as a proxy for broader US retail. Despite posting an earnings beat for Q1, 2018, Home Depot’s actual sales came in below expectations. A fantastic earnings season has created a high-wire environment for stocks: earnings may be hard-pressed to accelerate from here.
This sort of environment is actually ideal for news-based traders using quantitative stock selection strategies. Stocks being shifted by vital news events feature price momentum that easily pulls past broader market drift: in this way, news-based trading helps reduce exposure to macro-market risks (to which more traditional investors remain exposed). You can learn more about how news-based trading approaches lead to market-beating profits in a high-volatility environment in one of our totally free virtual training seminars. Just sign up using the button below:
Today’s Top Performer: Eurotech Holdings (NASDAQ
Headquartered in Hong Kong and focused on the Chinese market, Euro Tech manufactures and distributes monitoring instruments, along with associated environmental engineering services, for use in complying with air, water, and energy regulations. Their stock is surging today after announcing year-end results for 2017.
Revenues were actually down 22.8%, but profits still increased 105% due to a successful decrease in sales, administration, and tax expenses. The firm recently acquired a ballast water business and is engaged in an R&D project with the PRC government.
Investors are pouring into the stock on heavy volume, sending it up over 50% at the time of this writing after briefly surging above the 100% mark. The stock has now moved dramatically above its usual trading range for the last several years.
Keep checking the NQ blog for a powerful sample of the 1000’s of profitable news alerts available to our users each and every week.