Surely, You Can’t Be Serious

Tale of the Tape

Good evening everyone. Stocks closed lower again today and it appears this recent sell off is picking up some velocity.

The S&P 500 fell 1.75% and the Nasdaq gave up 1.55%.

Once again, financials, energy, and small cap stocks were especially weak. It’s a pattern bulls do not want to see. Recall, these guys led the way down during the Q1 COVID crash. 

Maybe it’s nothing really or maybe it’s déjà vu all over again.

Billionaire Appaloosa Management founder David Tepper said this market is the most overvalued he’s seen it since 1999. This is the second legit hedge fund titan to come out bearish on equities in the last 24 hours.

Maybe it’s nothing really or maybe it’s déjà vu all over again. 😉

Trump said 100 trade deals with China wouldn’t make up for coronavirus.

Wells Fargo fell 6% today and is trading at its lowest levels since the global financial crisis. Couldn’t happen to a nicer guy. See more below.

Here’s your closing prices for the equity indices:

S&P 5002,820-1.75%
Russell 20001,233-3.32%
Dow Jones23,247-2.17%

Banks Are So Weak

Financials have underperformed the market like crazy. Here’s a 1-year chart featuring S&P 500 ETF $SPY, Financial ETF $XLF, and Regional Banking ETF $KRE. 

Financials are underperforming the S&P 500 by 23% and Regional Banks are down 41% in the last year. Yikes. 

Check out Wells Fargo relative to the financial ETF $XLF. Wells is the worst house in a bad neighborhood.

Airline Stocks Suck.

Surely, you can’t be serious. Airline ETF, $JETS closed at $12.15. This is the lowest close of all time. The intraday low of $11.25 from March 19th still holds. Will this price get tested next? Place your bets…

Dolla, Dolla Bills Y’all

Earlier this morning, Federal Reserve Chairman Jerome Powell addressed the current economic situation. He highlighted the strength of the monetary and fiscal measures taken so far, but acknowledged more action might be needed.

Freakin’ Twilio

Twilio announced earnings a week ago today and the stock hasn’t looked back since. $TWLO opened at $152.40 following the numbers and closed at $187.82 today. It jumped 58% and added $11B in market cap. This stock is a freak. 

Here’s the daily chart.

What If People Don’t Work in NYC?

Yesterday, we highlighted Jack Dorsey’s directive to Twitter employees allowing them to work from home forever. 

Today, the New York Times published a great piece exploring what might happen if many more and larger businesses across NYC even partially followed suit.

The economic implications would be staggering. This great city and others are vulnerable. Check it out here.

Today on Stocktwits…

Hoover is demonized today for not doing enough to stop the Great Depression, but in October-November 1929 the initial stimulus measures were cheered by investors leading to a six-month rally that fizzled into early 1930… here is what they did in Q4 1929.

Via Aureliuscapital

What is going on in LA?

It’s like these guys play in the same stadium or something…

LA Rams

LA Chargers

Earnings Tomorrow…

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

Links That Don’t Suck

PlayStation 5 Still on Track For Holiday 2020 Release, Says Sony

How a Brooklyn Wine Shop Bucked the Covid Odds

Hole in Ones During the Pandemic Come with an Asterisk

S&P Is Now Flat For 28-Months, More Disappointment To Come?

Elon Musk and Texas Governor Talk About Potential Tesla Move to Lone Star State

ESG Investing Shines in Market Turmoil, With Help From Big Tech

Royal Caribbean Offers $3.3 Billion in Bonds, Pledges 28 ships as collateral