Walmart Earnings, Tesla Share Spotlight With Turkey, Trade

Chip and FAANG stock struggles weighed on the broader Nasdaq

Aug 17, 2018 at 1:51 PM
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The week started off on a negative note, as concern over the crisis in Turkey continued to weigh on Wall Street -- and sparked heavy options trading on number of global exchange-traded funds (ETFs). However, news that the U.S. and China will meet for another round of trade talks and a fresh batch of positive blue-chip earnings reports have the Dow on track for a weekly win. And while the S&P 500 is also up since last Friday's close -- and this rare volatility signal points to more gains ahead -- the Nasdaq hasn't been as resilient, pacing for a weekly loss on weakness in FAANG stocks.

Walmart, Cisco Spark Tailwinds for Dow

Walmart (WMT) earnings headlined a busy week of blue-chip news, with the retail shares surging nearly 10% on Thursday -- and breaking free from key technical resistance. Cisco Systems (CSCO) also jumped after earnings, a move short-term options traders weren't anticipating. Home Depot (HD) reported earnings, too, while UBS set a lofty Boeing (BA) price target.

Earnings Level J C Penney Stock

Department store stocks, on the other hand, got walloped after earnings, with J C Penney (JCP) plunging 27% on Thursday -- rewarding shorts along the way -- though Nordstrom (JWN) bucked the bearish trend. Elsewhere on the earnings circuit, analysts pumped the brakes on Deere (DE) ahead of its third-quarter profit miss, while dismal guidance for chipmakers Applied Materials (AMAT) and Nvidia (NVDA) weighed on the broader semiconductor sector.

FAANG Stock News Round-Up

As rumors swirled over Amazon's (AMZN) latest victims, the stock's put options continued to gain in popularity. News Alphabet's (GOOGL) Google is far from launching a search engine in China lifted Baidu (BIDU). And while Apple (AAPL) carved out a record high earlier this week, Netflix (NFLX) may have flashed a "buy" signal during its most recent pullback.

Buffett Boosts Teva, Musk Woes Weigh on Tesla

Several analysts said buy the dip on Constellation Pharmaceuticals (CNST), while Barclays pegged Community Health Systems (CYH) as the worst of the worst -- though it said this name could outperform. Teva Pharmaceutical (TEVA) is headed toward its best week since early June on news of a boosted Buffett stake and a big regulatory win.

Weed stocks were also in focus, with bullish brokerage firms blasting Tilray (TLRY) and one drinkmaker looking to expand into the cannabis-based beverage market. Several penny stocks saw upbeat analyst attention, too, while Jefferies turned its attention to casino stocks -- upgrading Boyd Gaming (BYD), and downgrading Wynn Resorts (WYNN). Tesla (TSLA), meanwhile, is on track for its worst weekly loss since July 2017, amid intense scrutiny of recent tweets from Elon Musk, and the CEO's telling New York Times interview.

Stocks Flashing Buy, Sell Signals

A bullish options signal just flashed for this cybersecurity stock, and this Chinese tech name could be at an attractive entry point following recent sector-wide struggles. And while analysts say sell these two stocks, it could be time to buy puts on Nektar Therapeutics (NKTR). Also on the radar is Molina Healthcare (MOH) and Cypress Semiconductor (CY), which could both be ready to make a big move higher.

Retail Earnings, Fed in Focus Next Week

Looking ahead to next week, retailers will continue to dominate the earnings spotlight, with big names such as Kohl's (KSS) and Target (TGT) getting ready to report. Additionally, all eyes will be on the Fed meeting minutes and the central bank's summit Jackson Hole, Wyoming -- looking for clues to a possible September rate hike.

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