The Tale of the Tape
Good Evening Folks. The indices were flat to mixed and marked two consecutive days small caps outperformed (see below for more) while the mega-cap Dow underperformed. Utilities and Real Estate were the best sectors and made new highs. These guys have been stalwarts as y’all know if you’ve been reading here.
We made up some losses midday, traded in a narrow range and we’re not going to make up some drama like there were fireworks. It was an uneventful session on modest volume with traders trading Bloomberg memes.
The Real Estate Rundown
The Real Estate sector has been shredding. It’s up 7.06% YTD and makes all-time highs every other day.
While rates are low and $XLRE pays a dividend 50% higher than the S&P 500, there’s another reason the sector is so strong. The following stocks make up roughly 25% of the Sector SPDR ETF $XLRE:
$SBAC – Operates Cellular Towers and Provides Leasing Services to Wireless Service Providers
$CCI – Owns Wireless Towers in the U.S., Australia, and Puerto Rico
$AMT – Owns Cellular Towers Used by Wireless Service Providers and TV and Radio Broadcast Companies
All of these stocks specialize in properties in the Wireless/Cellular tower space. They’re 5G plays and this is how momentum works.
These three stocks have more than doubled the performance of the ETF in the last 3 months. Have a look:
Bullish Engulfing Candles
We saw a number of bullish engulfing candles today. Here are a few that caught our eye:
Russell 2000 ETF $IWM
SPDR S&P Midcap 400 $MDY
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DraftKings Making Money Moves
Earlier today, Darren Rovell reported on Twitter that,
DraftKings strikes a deal with Pacers to be an official sports betting partner, 76ers to be official sportsbook partner and the Celtics for Fantasy Sports, expect sportsbook side to follow when Massachusetts is legal.
This is a watershed moment in sports betting and American culture. All college kids, no matter where they are located, will be able to download an app, fund it with a few bucks, and begin gambling. There will be zero scarcity or friction to sports betting.
This could also add competition for the brokerages who’ve fostered legal gambling of a different kind. Or this could be a great funnel to get more people into the markets. Go ahead and place your bets… 😉
$165M Deal and No Broker 🤯
Jeff Bezos avoided a broker while purchasing his new $165M LA home. Maybe Jeff is on to something here. If you want a house just find the owner and make an offer. Simple as that.
RompHim is shutting down… 🎺
Win A Trip To NYC
Win a trip to NYC to ring the Nasdaq Opening Bell with us in the heart of Times Square on February 24th. Enter here.
EPS: $0.48 vs $0.43 est.
Revenue: $297.6M vs $279.55M. (+23.4% Y/Y)
EPS: RMB18.19 vs RMB15.7 est.
Revenue: RMB161.46B vs RMB156B est. (+37.7% Y/Y)
EPS: -$0.13 in-line.
Revenue: $411.2M vs $392.7M est. (+49.1% Y/Y)
$ROKU traded higher after hours.
EPS: $1.89 vs $1.67
Revenue: $3.11B vs $2.98B est. (+40.7% Y/Y)
$NVDA traded higher after hours.
Be sure to know when your stocks are reporting. Here’s the full earnings calendar.
Links that Don’t Suck
The Influencer Election Is Here
NASA Spots ‘Potentially Hazardous’ Asteroid Rapidly Approaching Earth
Softbank’s $375 Million Bet on Pizza Went Really Bad Really Fast
The Secret of Stock Picking