Hope You’re Enjoying MLK Weekend
Attended a bachelor party in Nashville over the long weekend… As such, not much to share on the markets to welcome in the brand-new, shortened trading week. But, I do have your day-to-day schedule as well as some thoughts on two stocks — moving in different directions — reporting this week and the January 20th Deadline 10% Cap on Credit Cards.
Good luck. Talk to you all soon.
Monday
MLK Day – Markets Are Closed
Tuesday
Netflix (NFLX) | ATC
The stock has not been able to catch a break. The most important aspect of potentially switching to a cash offer is the time-to-close (it would be quicker). If Netflix is actually going to acquire Warner Brothers, a quicker close would be preferred. It changes the perception of recent weakness.
Instead of looking at it as anticipatory of a “dead-money” period characterized by a battle with the FTC (and potentially the Trump administration), you can make the argument that the decline actually prices in—at least—some of the digestion of what is widely considered to be a (balance sheet) toxic asset.
Interactive Brokers (IBKR) | ATC
Zions (ZOIN) | ATC
10% Credit Card Deadline
Not sure if we see more relief today, but there is no enforcement mechanism in place to meet this goal. I see that AXP — my favorite in the credit space — and JPM — which has an outsized exposure to credit for a money center — rallied nicely on Friday, which leads me to believe investors see another TACO situation here. I tend to agree. So much so, I added to JPM and am considering the same for AXP.
Wednesday
Johnson and Johnson (JNJ) | BTO
Charles Schwab (SCHW) | BTO
Halliburton (HAL) | BTO
Could be an interesting report to see what appetite actually exists to follow the anticipated increase in oilfield activity following developments in Venezuela. The move here has been explosive. So, be careful chasing it. I wouldn’t.
Thursday
Initial Jobless Claims | 203k est. & 198k prior | 830
First Revision Q3 GDP | 4.3% est. & 3.8% prior | 830
Delayed PCE | 1000
Intel (INTC) | ATC
Not sure if it was a Freudian slip or something more, but Trump appeared to imply Apple (AAPL) had made an equity investment in Intel. While it wasn’t immediately noticed, the clip has made its way through social media. I bet it will be mentioned in the Q&A.
Either way, their recent work on Panther Lake, showcased at CES, is catalyzing a meaningful turnaround in the company’s reputation. In conversations with a few friends of mine closer to the PC scene, they’ve more or less given me the impression that Intel’s products don’t suck anymore.
Friday
S&P flash U.S. Services PMI | 52.8 est. & 52.5 prior | 0945
S&P flash U.S. Manufacturing PMI | 52.1 est. & 51.8 prior | 0945
SLB (SLB) | BTO
Same as HAL, this is another oilfield operator.
Key
Macro Economic Events
Corporate Earnings
High Importance
Gorilla With Glasses 