U.S. stocks closed higher on Friday as shareholders digested a slew of economic data in addition to corporate earnings reports.
The Dow Jones Industrial Average raised 332.36 points, or 1.39 percent, to 24,262.51. The S&P 500 raised 33.69 points, or 1.28 percent, to 2,663.42. The Nasdaq Composite Index was up 121.47 points, or 1.71 percent, to 7,209.62.
Total nonfarm payroll employment raised by 164,000 in April, lower than the 195,000 predictable by economists, according to the Labor Department.
Average hourly earnings growth also missed estimates as it rose only 0.15 percent against expectations of a 0.2 percent gain.
Despite the disappointing number of jobs created, the unemployment rate edged down to 3.9 percent, following 6 months at 4.1 percent. The number of unemployed persons, at 6.3 million, also edged down over the month, said the department.
On the earnings front, first quarter earnings are predictable to increase 25.7 percent while the blended revenue growth estimate is 8.4 percent, according to Thomson Reuters on Friday.
Of the 409 companies in the S&P 500 that have stated earnings to date for the first quarter this year, 79.2 percent have stated earnings above analyst expectations, said Thomson Reuters. (Source: Xinhua)
Top Pick for Monday: AgEagle Aerial Systems Inc (NYSE: UAVS)
AgEagle Aerial Systems Inc (NYSE: UAVS) has grabbed attention from the analysts when it experienced a change of 10.87% in the last trading session to close at $2.04. A total of 856,463 shares exchanged hands during the intra-day trade contrast with its average trading volume of 313.42K shares, while its relative volume stands at 2.80. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name. When stocks are *very* In Play one can see a RVOL of 5 and above. The higher the RVOL the more In Play the stock is.
Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.
In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.
Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.
Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.
Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, AgEagle Aerial Systems Inc (NYSE: UAVS) stock is found to be 27.17% volatile for the week, while 21.48% volatility is recorded for the month.
The stock has a market cap of $19.89M and the number of outstanding shares has been calculated 9.75M. Based on a recent bid, its distance from 20 days simple moving average is -43.47%, and its distance from 50 days simple moving average is -53.63% while it has a distance of -66.43% from the 200 days simple moving average. The company’s distance from 52-week high price is -90.40% and the current price is 16.57% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 36.58 together with Average True Range (ATR 14) of 0.83.
Past 5 years growth of UAVS observed at 31.50%, and for the next five years the analysts that follow this company is expecting its growth at N/A. The stock’s price to sales ratio for trailing twelve months is 15.30 and price to book ratio for the most recent quarter is N/A, whereas price to cash per share for the most recent quarter are 28.41. Its quick ratio for the most recent quarter is 0.20. Analysts mean recommendation for the stock is N/A. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
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