In Tesla We Trust 🇺🇸

Tale of the Tape

Good evening everyone. The rally on Wall Street today was broad and glorious as stocks ripped your freaking face off. The S&P 500 was up 2.6%, the Naz was up 3.5%, and the Russell 2k was up 5%.

Everybody made money except shorts and Utilities and the S&P 500 is now only 13% from all time highs.

Energy stocks were up 7%. Tech was up 4%. Financials were up 3%. Consumer Discretionary was up 2%. 

There was a crazy amount of news including earnings, GDP, Gilead COVID-19 drug results, bitcoin rippage. 

Even Boeing closed up 6% despite poor earnings.

Let the euphoria wash over your body and bask in it people. It has been a long time. 

Here are the closing prices for the major indices.

S&P 5002,939+2.66%
Russell 20001,360+4.83%
Dow Jones24,633+2.21%

In Tesla We Trust 🇺🇸

This evening, Tesla reported earnings and boy did Wall Street love it. The stock ripped in after-hours trading up to $880 from the $800 close. 

Here are the headline numbers but if you’re serious about it, you’re going to want to take a closer look because there’s a lot of space math in there if you know what I mean.

EPS: $1.24 per share

Revenue: $5.99 billion

Remember all those Robinhood traders who got mocked for getting long Tesla at $800. Well banzai bro because they’re back in black and could sell now with a nice gain. Hopefully they held on. 😉

They crushed it. Good for them. God Bless America. Here’s Marketwatch with more.

Facebook Earnings

Facebook reported earnings after the bell and guess what, it’s  up 10% after hours. Here’s the headline numbers real quick:

EPS: $1.71

Revs: $17.74B

People are junkies for the Facebook Apps even if they hate to admit it. Zuck and Co had 3B monthly users across apps. That’s Three Billion Monthly Average Users Across Apps. Sorry, we had to spell that out because 38% of the people on this planet used Facebook at least once per month in Q1. That’s insane.

Average revenue per user dipped a bit in Q1 but that’s a seasonal thing plus COVID-19 began affecting ad pricing during the quarter.

Here’s more from the kids at CNBC.

Microsoft Earnings

Microsoft followed suit with a strong report of its own. The stock didn’t pop 10% after-hours like Tesla and Facebook but it managed 3.5%. Here’s the numbers:

EPS: $1.40 vs $1.27 est.

Revenue: $35B vs 33.6B est.

Check out what Microsoft CEO, Satya Nadella had to say:

“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything.”

Gilead Drug Shows Promise

This morning, NIH published a study showing that Gilead Sciences drug Remdesivir accelerates recovery from COVID-19. This was positive news for $GILD stock, which rose 5.6% on the day.

It also contributed to a positive tone for stocks across the board as the market loves any data which improves the expectations for a return to economic normalcy.

On the news, NIAID Director Anthony Fauci said, “This is good news,” and the results showed, “a clear-cut positive effect in diminishing time to recover.”

You can read more about the news here and check out the Stocktwits $GILD stream here.

Early Earnings

We had a handful of companies report earnings early this morning. Here’s the highlights:

Boeing jumped 5.86% on earnings that were not as bad as expected despite production cuts and further layoffs. 

Mastercard beat earnings and revenue estimates and the stock jumped 7%.

Spotify closed up 11.5% after reporting strong subscriber growth. The stock briefly traded above $160, but it couldn’t hold. The last time $SPOT closed above $160? October 2018. Here’s the chart:

Don’t Sleep on Bitcoin 

While stocks have been ripping higher lately so has bitcoin. In the last week, $BTCUSD rallied 23%. This beast is now up 21% for the year. Here’s a one week chart:

Earnings Tomorrow…

Twitter, McDonald’s, Amazon, and Apple tomorrow. Get ready for another wild one!

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

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