Trade Signals and Outlook analysis of tickers in the FAANG Theme

Trade Signals and Outlook analysis of tickers in the 5G Theme

Top 5 Gainers in Motor Vehicles Industry 

Outlook for Top 5 Oversold Stocks in Energy Minerals

As the holiday season approaches, Amazon   would pay an additional $300 to full-time employees as part of a special recognition bonus.This is for employees who package and deliver the items. Part-time employees, working for the e-commerce behemoth from Dec. 1 to Dec. 30, will get paid $150 as an appreciation bonus. The special recognition bonus is a total more than $500 million for Amazon's front-line employees. According to Amazon,  it spent $2.5 billion on special bonuses in 2020 globally.  The company expects net sales to be between $120 billion and $121 billion for the holiday quarter,  vs. analysts’ forecast of $112.32 billion for the quarter. 

Entertainment giant Walt Disney  plans to cut 32,000 jobs by the end of March, According to a Securities and Exchange Commission filing on Wednesday. The layoff figure is 4,000 more than the 28,000 job cuts announced in September. Most of the job cuts will take place in the company's theme parks. Around 37,000 Disney employees were on furlough as of Oct. 3, according to the filing. "Due to the current climate, including Covid-19 impacts, and changing environment in which we are operating, the company has generated efficiencies in its staffing, including limiting hiring to critical business roles, furloughs and reductions-in-force," Disney mentioned in the filing.

Every hint that the global economy is recovering has caused prices to rise. In the beginning of the rally, it seemed like prices were rising due to a decline in supply as production was halted or cut tremendously.The combination of supply cuts and demand increases has caused copper prices to jump nearly 75% from the March low. Unfortunately there are signs that the rally in copper and the industrial metal stocks may be set for a pullback.

The reasoning behind that belief is based on how demand for the products is pretty consistent and may even increase during stressful economic times. While browsing through charts recently I found two sin stocks that can’t seem to break out of the downward trends they have been in for the last four years or so.Altria (MO) and Molson Coors Brewing (TAP) have both seen their stocks trend lower in recent years, but the companies have decent fundamental indicators. If we look at the weekly chart for Altria we see that the stock has been trending lower since the second quarter of 2017 and from its peak through its low, the stock lost over half of its value.

Morgan analyst Matthew Boss said, "Looking forward, we see an embedded call option on Gap/Banana Republic with zero value attributed to the two brands today," adding, "despite a potential near-term catalyst path with the Kanye West 'YZY Gap' launch in fiscal 2021 as a brand accelerator for Gap and a rotation back to workwear in light of vaccine news, a catalyst at Banana Republic, consistent with our 3-wave retail 'recovery.'"  According to Boss, Gap has underperformed the S&P 500 by 50% over the past three years, thereby supporting  its upside potential. J.P.

The vehicles included some Cadillac Escalade, Chevrolet Silverado, Chevrolet Suburban, Chevrolet Tahoe, GMC Sierra and GMC Yukon vehicles built over an eight-year period. GM has 30 days to give NHTSA a plan for informing vehicle owners to begin the recall.The recall will lead to an estimated cost of $1.2 billion to GM. "NHTSA concluded that the GM inflators in question are at risk of the same type of explosion after long-term exposure to high heat and humidity as other recalled Takata inflators,” the agency said.

With malls closed or operating with limited hours, many of the apparel retailers were hit particularly hard. Over the last four months the stocks of these companies have pretty strong bounces as investors believed the selling was overdone.Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO), and Gap (GPS) are all set to report earnings on November 24. If we look at the stocks of these companies over the last four months, we see some incredible gains.

Macy's Inc.  reported a third quarter loss  narrower than expected. The retail company’s adjusted loss for the three months ending in October was came in at -19 cents per share, better than the Street consensus forecast of -79 cents per share loss.In the prior-year quarter, earnings were in the positive territory, +7 cents per share. Revenues dropped -22% year-over-year to $3.99 billion, a figure that also exceeded analysts' estimates of  $3.86 billion. Same-store sales fell - 21% year-over-year.

FuelCell Energy  got a rating downgrade from J.P. Morgan analyst Paul Coster . Coster  lowered his rating on the fuel cell power-plant maker's  shares to neutral from overweight, on valuation concern. "The stock is up about 135% over the last month (S&P 500 up 3.4%), buoyed initially by a wave of regional 'climate ambition' initiatives associated with hydrogen and fuel cells, but also owing to a rerating of the alternative energy stocks on the back of the Biden election victory,” Coster wrote in a commentary.But Coster also said “the more dramatic move over the last three days seems to be taking place in absence of new news,". According to the analyst, FuelCell seems to be moving towards profitability in 2022, and its fundamentals look good.

Nvidia Corp.  beat Q3 earnings and revenue expectations.This includes impact of a major purchase from a China-based client, and its recent acquisition of Israel-based networking group Mellanox. Gaming revenue surged +37% year-over-year to $2.27 billion. According to Nvidia, gaming revenue is likely to  continue to accelerate.

New  jobless claims in the U.S. rose for the first time in five weeks, amid surging COVID-19 cases. According to the Dept.The figure is also higher than the 700,000 expected by Economists polled by FactSet. Continuing claims stood at 6.372 million for the week ended Nov. 7, down from a revised 6.801 million the previous week, the Labor Department showed. Meanwhile, the number of U.S. coronavirus cases topped 250,000 this week .

Boeing Co.  got an approval from  Federal Aviation Administration to have its  grounded 737 MAX aircraft back to service. According to FAA Administrator Steven Dickson, he was "100% confident" in the safety of the aircraft.  The 737 MAX was grounded in March of 2019 following fatal crashes in Ethiopia and Indonesia that killed 346 people.  "We will never forget the lives lost in the two tragic accidents that led to the decision to suspend operations," said CEO David Calhoun." The FAA's directive mentions requirements such as installing new flight control computer (FCC) software, revising the existing Airplane Flight Manual (AFM) to incorporate new and revised flightcrew procedures, installing new MAX display system.            

When Twitter (TWTR) announced third quarter earnings results on October 29, investors were disappointed.This sent the stock tumbling 21.1% on October 30 and it dropped another 4.6% on November 2—the next trading day. After those two big declines, the stock bounced back a little and appears to have stabilized in the $42.50 to $45 range in the last few weeks.

Pfizer Inc.  announce that the  coronavirus vaccine that is has developed with German partner, BioNTech , has a 95% efficacy rate, in its complete results from a late-stage trial.The result is an improvement from the interim results of efficacy rate of 90% last month, which was based a cohort of around 94 patients. The latest result is consistent across all age and race demographics and based on a total case cohort of 170, according to Pfizer.   A few days ago, Moderna  published a efficacy rated of 94.5% of its vaccine, based on early look of its late-stage trial. Pfzer and BioNTech said they the will apply for Emergency Use Authorization from the U.S. Food & Drug Administration in the coming days.

On Tuesday, cryptocurrency Bitcoin topped $17,000 for the first time in almost three years. After December 2019, the digital coin  a uneven uptrend, but has more then tripled since March 11. While digital currencies themselves could be relatively volatile, the underlying blockchain technology shows strong promise, and could lead to more crypto currencies in future.

Electric carmaker Tesla got  added to the S&P 500.Its shares will officially begin trading as part of the index on Dec. 21.The inclusion comes after the stock failed to it to the index during the latter’s quarterly rebalancing in early September. Tesla’s stock surged about +14% at 6:20 p.m. in New York, lifting Musk’s net worth to $117.5 billion, according to the Bloomberg Billionaires Index. On Saturday, Musk tweet read that he “most likely" had a moderate case of Covid-19 and has had symptoms of “a minor cold."