Kushner Said What? Oh Boy

OK - I can’t help myself…..
 
Who said: 
 
If you like your healthcare plan, you can keep your healthcare plan!
 

Teddy Cruz  B. George Washington  C. Barack Obama

 
I did not have sex with that woman!
 

Liberace   B. Elton John  C. Bill Clinton

 
I did not collude with the Russians!
 

Bashar al-Assad   B. Chucky Schumer   C. Jared Kushner

 
I mean it’s a joke really - because each of those statement PROVED to be false…there was not a shred of truth in any of it and NO ONE really got called out on it or got punished…..and so you can say anything you want in DC and then you move into the White House.... Whatever...
 
Stocks meandered yesterday as investors/traders entertained themselves with what Jared Kushner had to say - (see Q 3 above), what the FED will say on Wednesday, what GDP will be on Friday (2nd qtr) and what the slew of earnings reports will reveal this week……All of this  - leaving both the Dow and S&P with losses while the Nasdaq surged to another new record high (really helped by bio-techs - IBB) …..as discussed - we are about to get hit with nearly 200 earnings reports this week - and the biggies will be the FANG Stocks….(FB, AMZ, NFLX, GOOG)  - which have been the outperformers and have garnered a lot of attention as a result….but will the party continue to for these names once earnings are released? 
 
Well we got the first taste last night after the bell - Google reported and beat on both the top and bottom line numbers (bullish right?) - and traders promptly proceeded to  TAKE $30 pts out of the stock in the afterhours session - and this morning the stock is trading at down $24 at  $953.    Now look - $30 is not a big deal for GOOG…it's a $980 stock…so $30 pts is 3%…. (The stock is up 27% since January) -  unless of course  you bought the stock at $980 right before the bell….then yeah - not such a good trade, but I'm betting that is not the case for the majority of you……Ad revenue continues to grow (bullish) but mobile ads continue to earn less (bearish)  per click…so while ‘clicks’ surged by 52% - Revenue per click fell by 23% and so, traders hit the SELL button……Way to much noise - really…..
 
Just a thought - the FANG stocks - continue to draw money as technology is the future - so it is hard to bet against them and I am not suggesting you do at all - but from a trading perspective ....in the short term -  Relative strength for each of these names are:  FB 86,  AMZN 86,  NFLX 96, GOOG 83 ….and we know that anything over 70 or so suggests an overbought condition…..and so are we really surprised that they took 3% out of GOOG post the announcement?  FB is due to report tomorrow, AMZN on Thursday - so the pressure is on.....
 
Other sectors Industrials (XLI), Healthcare (XLV), Energy (XLE), Consumer Staples (XLP), Consumer Durables (XLY) and Utilities (XLU) all moved lower…..in the Financial space (XLF) GS - just flashed a ‘death cross’ - when the 50 dma breaches the 200 dma - which suggests weaker days ahead….could that be just for GS or can we expect the industry to come under pressure?  (Think lack of reforms as a negative catalyst, but rising rates would be a positive catalyst - so are we just paired off?) The other name that appears close to also flashing a ‘death cross’ is -  WFC - while JPM, BAC, C & MS all appear to be alive and well (at the moment). 
 
Tomorrow we will hear from the FED and as discussed - we are not expecting anything of significance to come of it.....other than potential clarification on future moves.....Remember that some of the best performing days for the mkts are when the FOMC meets...Why?  Because that is when the 'team' gets to work - supporting stock prices while the FED meets - sending a message of vitality and growth. 
 
Nothing on the Economic front today will change the story at all....so it's all about earnings....and this morning brings us DD (BEAT), UTX, MMM, FCX, JBLU, MCD, NEM, AKS, LLY (BEAT), DPZ, CAT, GM, & KMB.  After the close - we get AMGN, WYNN, T. CMG, & ESRX. 
 
US Futs are pointing up in early trade +2 pts - as the mkt awaits the onslaught of earning announcements and what the future holds......Traders will also be paying attn to any news in DC concerning the supposed healthcare 'debate' vote (McCain to return to DC to vote) along with anything else about the Russia scandal and the role that Kushner, Trumpy Jr, and Mannefort played in it. 

Is Jeff Sessions in or out? (the mkt does NOT care but for entertainment purposes)  Talk of replacing Sessions is now at an all time high - so expect more on this front and if he gets thrown out - does that hurt the Trump's story or help it?  What will 'the Mooch' have to say about all of this....the pressure is on -  and btw - Where in the world is Kelly Anne? 
 
Look for the S&P to remain entrenched in the 2450/2480 range.....do not be surprised to see some stocks come under pressure even on an earnings beat......It's a traders mkt - and they are a fickle group. 
 
European mkts are higher.... after some upbeat economic data & continued earnings optimism.  The German IFO Survey hit a record reading of 116 vs. (E) 115.0 this month which is helping the euro maintain recent gains to multi-year highs.  The IFO survey is a leading indicator for economic activity in Germany.....it is closely watched.  FTSE +0.85%, CAC 40 +1.1%,  DAX + 0.564%, EUROSTOXX +1.04%, SPAIN +1.53% and ITALY +0.93%.
 

Take Good Care
KP

Drunken Spaghetti

I am featuring this dish at the request of two good friends that were out last night drinking wine and wanting some pasta - so they called...and I said - Try the Spaghetti Ubriachi!

I had this dish for the first time while I was studying in Florence, Italy -  back in 1981….so you ask – drunken spaghetti?  How so?  Well – guess what – you cook it in water and red wine – a nice Chianti or “vino di tavola” (table wine).  No need to use an expensive red –  go out and buy a chianti.   The trick is that you add equal parts of water and wine – bring to a boil and add the pasta – cook for 7 mins and then strain – reserving a mugful of water/wine.   You then finish it off by sautéing in a pan with butter, garlic, pancetta and ½ cup more of the wine….read on…

You need – a nice chianti, garlic, butter, spaghetti  (you can use fusilli, linguine, buccatini, cappellini but it should be a long pasta – not a penne or mostacioli, ravioli etc. Olive oil, chopped parsley, pancetta, fresh grated Romano Cheese and red pepper flakes (optional).

Add equal parts water and red wine to pot and bring to a boil.  Add salt.  Add pasta. Cook until al dente – like 7 mins or so.   

In the meantime, peel the garlic and slice it. – chop some pancetta.   Place the butter and olive oil in a sauté pan large enough to fit the pasta and place it over low heat to slowly melt the butter.  Now add the pancetta and cook just until almost crispy….now add in the chopped garlic.  Saute. (here is where you would add the red pepper flakes if you choose)

When the garlic gets toasty  add the additional ½ cup of red wine and about ¼ cup of pasta water….turn up the heat until the liquid simmers. Strain the pasta – reserving a mugful of water….toss the pasta into the sauté pan with the garlic & wine.  Add a handful of the fresh grated Romano.  Mix well, tossing and stirring over med hi heat until the liquid is absorbed.  Do not let it “dry out”…..you can always add a bit more of the water if it does.  Taste.  Good?    

Serve immediately in warmed bowls…..Always have extra cheese on the table for your guests.

 
Buon Appetito.