Tale of the Tape
Good evening everybody. Stocks were mixed today. The S&P 500 fell .5% and the Nasdaq fell 1.4% while the Russell 2000 gained .5%.
The highs came at the open, the S&P 500 began the day up 1.5%, got sold all morning, and then failed the bounce attempt in the afternoon. Here’s the intraday:
This supply is distinct from the recent pin action and it’s something we’re noticing.
Yet again, we got the laggards leading. Small caps, financials, and energy were green, green, and green while the S&P and Naz closed red and red.
Big cap tech got sold again with Apple, Google, Amazon, Facebook, and Netflix all closing lower. See more below.
We are thick into earnings season and today a bunch of widely followed names stepped up to the plate.
Pepsi, Harley Davidson, MMM, Google, AMD, and Starbucks to name a few among a ton of others. Tomorrow, we’ll get a bunch more. See below for details and links etc.
Tomorrow we’ll dance another hoedown with Boeing and GE before the open and Tesla, Microsoft, and Facebook after the close. Love it!
| S&P 500 | 2,863 | -0.52% |
| Nasdaq | 8,607 | -1.40% |
| Russell 2000 | 1,298 | +1.26% |
| Dow Jones | 24,101 | -0.13% |
No Guidance For You
A bunch of companies withdrew guidance for the full year includings some big ones like Pepsi, Starbucks, and 3M.
We come back to a theme we’ve mentioned a few times recently on the Daily Rip. Earnings mean nothing this quarter and maybe next. The full year might be shot.
Things that matter include expectations regarding when the quarantine ends, perceptions regarding how fast commerce can ramp back up, and how easy Fed money remains.
Earnings After-Hours
Shares of Google jumped $50 after missing earnings. Maybe this will reverse the recent big cap tech shnide.
AMD reported earnings of $0.18 per share, which met consensus estimates. The stock dropped $2 after-hours.
Starbucks sank after withdrawing guidance 🙂
Near-Term Top?
When the market rallies, it always feels like it could go on forever. So it’s a privilege to have a smart, seasoned, and sober voice temper the emerging emotional froth.
Today on Stocktwits, ace technician Brian @Alphatrends Shannon posted this beauty chart which framed today’s 2.5% drop from the open on the S&P 500.
Brian’s watching the Week-To-Date VWAP and he writes,
“If $SPY remains trapped below WTD VWAP (blue) today’s gap higher could mark a near term high & we could see a fast move from a failed move.”
We’ll be keeping an eye on the WTD VWAP the rest of the week to see how the $SPY behaves around it. Place your bets…
$HOG Wild
Harley-Davidson reported earnings this morning and the numbers were not good. That’s okay though, nobody was expecting numbers to be good and $HOG finished up 15%.
Here’s the 6 month chart. It ain’t pretty but you can’t deny, buyers stepped up.
Movin’ on Up
Enphase Energy and Paylocity will replace Meredith and Core Laboratories in the S&P MidCap 400. Enphase popped 15.5% and is now up 64% YTD.
European Stocks?
Goldman Sachs put out a list of European hopefuls titled the GRANOLAS. Aside from this being the worst acronym in recorded history, Goldman cites the company’s strong balance sheets, low volatility growth and good dividend yields as a reason for inventors to buy the stocks. Who knows though, Europe has underperformed the US since the dawn of time.
Here’s the 10-Yr performance for major markets in Europe and the S&P 500. The S&P has nearly doubled the next nearest contender.
GRANOLAS include:
GlaxoSmithKline, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, AstraZeneca, SAP & Sanofi
Blue Angels in NYC
The Blue Angels paid a visit to New York City this afternoon. The streets looked worse than the beaches in Florida.
Earnings Tomorrow…
Be sure to know when your stocks report earnings. Here’s the full earnings calendar.
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Links That Don’t Suck
Escape from New York City
Good Is The Enemy Of Great
You can’t invest in GDP
Talk is Cheap
The Beer Industry Has A Problem
Now Is the Time for Main Street Shops to Go Digital
Why NASA Plans To Slam A Spacecraft Into An Asteroid
