The markets were higher yet again today, as is typical following a presidential address. The Dow 30 was higher by 91, the S&P 500 closed up 10, and the Nasdaq 100 finished the day higher by 60.
Tomorrow there are a handful of reports that will come out despite the government shutdown, along with important speeches by Fed members. Delta Airlines (DAL ) will report earnings before the open as well.
Sector News
Oil surged 5.2% today thanks to the Saudi cuts as well as the US inventory reports, which showed a draw of 1.7 million barrels. Analysts expected very little change in inventory.
Home builders were strong on the day as well thanks to earnings reports out of Lennar Homes. The sector is now higher by over 15% since hitting lows just two and a half weeks ago.
Stock News
Constellation Brands (STZ ) shares broke to new lows today as the company announced earnings that came in lower than expected. The company also lowered their 2019 guidance, assuming 7% growth versus the 10% expected. The downward revision is due in part to the higher interest costs of its recent investment in Canopy Growth (CGC ) where they borrowed $4 billion.
Apple (AAPL ) shares were higher on the day despite news out of Asia that the company had cut its iPhone production by 10% for this quarter. If true, this is the second time in less than two months that Apple has cut production.
Footlocker (FL ) shares were higher on the day as the company was upgraded by Baird. The analyst said the company can continue to perform positively thanks to strong store sales numbers. Footlocker's recent rally puts it just a few percentage points away from 52-week highs.
Lennar (LEN ) reported earnings today showing lower-than-expected new home orders and sales. The company did not give a 2019 forecast, saying that there is continued softness and uncertainty in the housing market.
GOGO +20%; said they didn't incur certain forecast costs associated with further de-icing efforts in Q4, raising its Adj. Ebitda forecast to the high end of its previous range of $45M-$60M for the year. This is great news considering that the company has lost 144m on 900m in sales.
Tilray (TLRY ) shares were in the news today as Piper Jaffray initiated coverage on the cannabis company with an overweight rating and a $90 price target. The firm said, "The timing of a regulatory change is hard to predict, but we expect continued global momentum for medical and recreational marijuana legalization." The analyst also gave a similar rating to Canopy Growth (CGC ).
