The Weekend Rip: Earnings Are Here, What Does That Mean?

The Weekend Rip 4/19

Good evening everybody. The week ahead will be filled with more of the same lunacy we are all now growing accustomed to. We’ll all remain mostly isolated, stocks will ricochet like ping pong balls, there will be COVID reports that inspire hope and others that spur fear, the president will tweet things, etc etc…

And on top of this mess that’s become the new normal, we’ll get a full rack of smoked earnings. Netflix, American Express, Verizon, IBM, Snapchat, Truist, SAP, Intel, Dominos and many more will step up.. See below for the schedule of big names reporting.

We just want to reiterate two things we covered last week on separate occasions and put them together. 

1. In Zweig’s interview with Charlie Munger, a guy who is definitely wiser than us and likely wiser than you, Munger states that he has no idea how this will all pan out. So, humility, which is always warranted in markets, is even more warranted here.

And 2. The earnings numbers reported themselves will not mean a hill of beans. It will be the body language that will be much more important. Do corporate leaders sound like they have a plan? Do they have their shirt together? It will probably be a great quarter to listen to the earnings conference calls and a poor one to attend to earnings numbers.

Here’s the weekly performance for the major indices and the weekly S&P 500 chart:

S&P 5002,874+3.04%
Nasdaq8,650+6.09%
Russell 20001,229-1.41%
Dow Jones24,242+2.21%
Weekly percent changes 

$IWM Weak AF

Is the underperformance in the Russell 2K something or nothing? 

Here’s the Russell 2K ETF, $IWM relative to the Nasdaq 100 ETF, $QQQ, for the last 5 years.  

And the same for $IWM relative to $SPY.

Small caps are getting decimated. The real question here is whether this is a secular or cyclical shift. Place your bets…

Tomorrow is 4/20. Weed Stocks Still 💨

Here’s the YTD performance of some popular cannabis names. All of them are atrocious. If you’ve been long here, well at least you can self-medicate. Perhaps 4/20 can give them a buzz?

Check out Weed in Isolation: Celebrate 4/20 Online from Rolling Stone. For readers where marijuana is not yet legal, weed is bad. Don’t do drugs. 😉

Great Image via Jamie Catherwood

🐐🏀

Heads up y’all: The first two episodes of Michael Jordan’s The Last Dance will premier at 9ET tonight on ESPN. 

This should be good. Check out this teaser.

Sunday Links

Why the Stock Market Hasn’t Even Gotten Cheap Yet

In Club Penguin, the Drinks are Free

Rivian Wants to Bring Electric Trucks to the Masses

The Irrelevance of Financial News

Why America’s Craft Beer Trading Market Is Moving to Facebook

The Wild World of Yield Chasing

Putting Down Your Phone May Help You Live Longer

Porto Moniz Volcanic Swimming Pools

The Week Ahead

And now a brief and well-organized look ahead at the trading week beginning Monday, April 20, 2020:

Economic Calendar:

4/21 March Existing Home Sales (10 AM EST)

4/22 EIA Crude Oil Inventories  (10:30 AM EST)

4/23 March New Home Sales (10 AM EST)

Here’s the full Economic Calendar provided by Briefing

Earnings Ahead:

Here’s Earnings Whispers’ great visual.

Be sure to know when your stocks are reporting. Here’s the full earnings calendar.