What goes up must come down
Spinnin' wheel got to go 'round
Talkin' 'bout your troubles it's a cryin' sin
Ride a painted pony let the spinnin' wheel spin
-Blood, Sweat & Tears
Thursday was one of those sessions that lacked motivation. Buyers and sellers were lethargic, and the rally was on empty. There might be a correlation to mounting unknowns from the Boeing (BA) crisis to new worries if a US-China trade deal doesn’t happen. Bottom line: there was no blood, sweat, or tears.
S&P 500 Index | -0.09% |
Communication Services (XLC) | -0.44% |
Consumer Discretionary (XLY) | -0.30% |
Consumer Staples (XLP) | -0.09% |
Energy (XLE) | +0.11% |
Financials (XLF) | +0.38% |
Health Care (XLV) | -0.16% |
Industrials (XLI) | -0.33% |
Materials (XLB) | -0.75% |
Real Estate (XLRE) | +0.25% |
Technology (XLK) | +0.21% |
Utilities (XLU) | -0.02% |
However, the main problem with the market is the need for a catalyst and the waiting game. What will the next round of earnings bring, especially after the precipitous decline in consensus estimates? Speaking of earnings, after the close, several influential names posted results.
Adobe (ADBE) and Oracle (ORCL) both moved lower after posting results. The shares of both companies are enjoying a strong run this year (+18.3%) and (+17.5%), respectively, so it’s not unreasonable that cautious guidance would spark some selling.
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Conversely, Broadcom (AVGO) shares popped nicely after posting its results. At the close, the shares were only up 5.5% for 2019.
Meanwhile, Ulta Beauty (ULTA), already up 27.6% for the year, continued to be a juggernaut. Powered by same-store sales growth of 9.4%, the shares added to its gain for the year. This earnings result is all about the Kardashians, or in this case, Kylie Jenner, whose line of lipstick has driven and sparked a big uptick in traffic of younger buyers.
Portfolio Approach
We kept our powder dry yesterday, but I’m eager to make some moves. Stay tuned.
Communication Services 1 | Consumer Discretionary 3 | Consumer Staples 1 |
Energy 1 | Financials 1 | Healthcare 2 |
Industrial 3 | Materials 3 | Real Estate 0 |
Technology 2 | Utilities 0 | Cash 3 |
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