Tale of the Tape
Good evening fine people.
The market rallied today and so we celebrate this evening with wine and stinky cheeses!
The Nasdaq Composite closed up 1.41% on the day and if you squint your eyes, you’ll notice that the index is now up 0.08% for the year. Green YTD Mother Freakers!
This is astonishing. See more about it below.
Not to spoil the party too much – stocks still got sold in the afternoon. Not as dramatically as the past two days but it still warrants a mention.
Energy and Financials led the way higher both closing up more than 2%.
There were some crazy earnings related moves in individual stocks – a whiff of animal spirits for sure. Twilio closed up 40% on the day, Peloton jumped 16%, and Lyft rallied 21% with reports of margin expansion which is astonishing.
Here’s a one month chart of these three musketeers:
And here’s that little table we do with closing prices on the major indices:
Earnings After the Bell
Roku lost $0.45 per share meeting consensus estimates. Since last year $ROKU has gained 2.9 million active accounts while streaming jumped by 1.6 billion hours.
$ROKU fell 5% after-hours. Here’s CNBC with more.
Uber reported a loss of $1.70 per share, worse than consensus estimates of ($0.99).
The stock jumped 9% after-hours.
The Nasdaq is now green for the year. This is incredible given the dire state of the economy and the continued suffering and uncertainty around COVID-19.
The beauty of it, and the beauty of markets in general, is that we have no way of really knowing whether this is a momentary lapse of rationality in stocks or, and preferably, whether stocks are simply looking forward to a healthy and joyous recovery that is almost upon us.
DraftKings & the NFL
In March, DraftKings traded for $11 and change. Today, it closed at $23.51 up 110% from that March bottom.
This is a huge move, even though there are no games being played to gamble on.
The NBA is shut down. MLB is shut down. NHL is shut down. No golf. There’s no college sports.
It’s a nightmare of gambling withdrawal for sports junkies across this great nation.
Maybe the strength in $DKNG suggests that the NFL will start its season right on time in early September.
Fingers crossed 🤞🤞🤞
Bitcoin futures crossed $10,000 today after legendary hedge fund manager Paul Tudor Jones mentioned that he bought contracts as a hedge against central-bank money printing. 🤯
It is now up 37% YTD. Crazy.
Add that to the momentum gathering around the Halving on May 11 which we discussed in yesterday’s Rip and you’ve got a bonafide cha cha cha. Who knows what’s going to happen next.
Here’s the weekly bitcoin futures chart. Place your bets…
Today on Stocktwits…
Today on Stocktwits, AAII VP and Journal Editor Charles Rotblut shared the AAII Sentiment Survey Results for the week ending May 6.
Bearishness is off the charts and at its highest level since 2013. This rally off the COVID crash bottom is hated.
Check out the graphic below:
We reached out to Charles and he gave us a little more color:
Many AAII members told us in a different survey they were buyers in March and late April. Now many of them are watching how the virus is evolving, the economic data, and price levels. There may also be concerns about stocks rebounding too far too fast.
Historically, unusually low levels of optimism have had a stronger correlation with above-average returns for the S&P 500 than unusually high levels of pessimism.
Let the trash talk begin.
The trash talk is heating up ahead of the charity golf match featuring Tiger Woods, Phil Mickelson, Tom Brady and Peyton Manning. The match will air May 24th on TNT and this couldn’t come soon enough.
Elon Musk & Joe Rogan Round 2
Elon Musk appeared on the Joe Rogan Experience for the second time and didn’t disappoint.
The man says we won’t have to talk in 5 years. Get ready, folks.
Be sure to know when your stocks report earnings. Here’s the full earnings calendar.
Links That Don’t Suck
Netflix and the Culture of Reinvention
A New Twist on Why Top Athletes Nap So Much
Google Parent Drops Plans to Build ‘Smart City’ in Toronto
‘Tiger King’ Zoo Reopens to Big Crowds, Threatening Big Cats w/ Coronavirus
Michael Bloomberg Pays $44.79 Million for Henry Kravis’s Colorado Ranch