Shanghai got Shanghaied

The Tale of the Tape

Good evening folks. The market bounced today after Friday’s big sell-off and made up about half of those losses. Energy was the worst sector as it continues to lag everything including buggy whips and sour milk. Meanwhile, materials, tech and communications all rallied more than 1.25%.

S&P 5003,248+0.72%
Russell 20001,632+1.12%
Dow Jones28,399+0.51%

Google Missed

Google reported earnings after the closing bell today. Here are the numbers:

EPS: $15.35 vs. $12.76 est 

Revs: $37.6B vs $38.4B est

The stock traded lower after hours, down 5%.

Here’s more from The Wall Street Journal.


Zoom shares jumped 14% today. In addition to the price increase, volume was its second-highest ever. The “story” behind the pop was… “coronavirus makes ‘face to face’ meetings less attractive” That story sounds wonderful in theory. Here’s the daily chart below:

Shanghai got Shanghaied 

Stocks in China got crushed overnight as the Shanghai Composite index dropped 7.72%. Shares of more than 3200 companies went limit down. Only 162 stocks in Shanghai and Shenzhen were positive. If you’re trading Chinese markets and looking for relative strength, those 162 might be ones to watch. Good luck with that. 

Google’s Heartstring Formula

Last night’s Google Super Bowl commercial drove many to tears and rated high among all the SB spots. If you didn’t watch, it showed an elderly man remembering his wife with the help of Google Assistant. For those shedding tears, let us pull back the curtain to give you an idea of what is really going on.

Google has well over $100 billion in cash. It earmarks a fraction of this giant pile to marketing and hires ad firms trained to sell you frozen waffles and Viagra.

These ad firms create narratives like this one intended to tug at your heartstrings. Here’s another Google commercial from 10 years ago that is almost the exact same thing. It even uses the same music. Sigh…

Links that Don’t Suck

In this new Dutch neighborhood, there will be 1 shared car for every 3 households – Fast Company

Chicago’s Puerto Rican Bonds – WSJ

Great Things Take Time – Nick Maggiulli

Tech in 2020 – Standing on the shoulders of giants