Tale of the Tape

Good evening folks. 

Stocks were mixed today with the Nasdaq and big cap tech contingent taking the brunt of the selling yesterday never happened.

The market couldn’t care less about a consistent narrative and it has zero memory from day to day so whatever. 

Banks, small caps, and other loser stocks led. 

Regardless, stocks gave up most of their gains in the last hour and the S&P 500, which traded up 1% plus early, closed essentially flat. 

The Russell outperformed which has been a headfake 100 of the last 100 times it has done so but maybe this time it will all be different.

Snapchat reported after the closing bell and is trading lower after hours on DAUs. See more below.

Here’s the closing prices on the major equity indices and here’s our favorite Cat Stevens tune that is guaranteed to chill the crazy bones. Happy 72nd Birthday Mr. Stevens. 

S&P 5003,257+0.17%
Russell 20001,487+1.33%
Dow Jones26,840+0.60%

📸 SnapFarts

Snapchat reported Q2 earnings after the closing bell and beat by a bit on the top and bottom lines. 

However, the camera company missed by a bit on the Daily Active Users numbers and the stock proceeded to drop 6% or so after hours. 

Bears were making a big deal about TikTok’s ascendance but the kids are using $SNAP as a chat app and it’s awesome so the use case is a little different.

$SNAP also mentioned that the average user is looking at the app 32x/day. THIRTY TWO TIMES PER GOTDAMN DAY!  We’re all junkies.

The after hours action is probably just a bit of a give back after the monster rally off the March low. The stock closed at $8.37 on March 18 and $24.74 today so $SNAP was a legitimate triple in 4 months.

Earnings Round-Up

United Airlines

EPS: -$9.31 vs -$9.13 est.
Revenue: $1.5B vs $1.1B est.

$UAL lost $1.63 billion in Q2 with revenues falling over 87% YoY. 

The company averaged a daily cash burn of $40 million but they expect to burn only $25 million a day in Q3. 🔥💸

Texas Instruments reported second quarter earnings today after the close. The numbers weren’t bad and the stock was up 1% after-hours.

EPS: $1.48 vs $0.88 est.
Revenue: $3.2B vs $2.9B est.

$TXN is up 7.20% YTD.

Here’s the press release.

Place Your Bets…  

Gambling stocks are flagging. DraftKings and Penn National Gaming have both been consolidating over the last few weeks. Will we see breakouts or breakdowns? Place your bets… 

The US Dollar Index Stumbles

The Fed has printed a lot of dollars and it plans to print more. <Insert your favorite Money Printer Goes Brrrr Meme Here 😉> 

And people are all like, “well, why are we even paying taxes if the Fed can just print dollars whenever we need them,” which we kinda get because nobody likes paying taxes.

The thing is, though, there are risks and consequences. If we print so much that the value of the $ drops, then our money is worth less and things cost more. Inflation, ugh. 👹

Here’s a chart posted to Stocktwits by Ace Risk Manager and Dragonfly Capital founder, Greg Harmon, showing today’s weakness in the US Dollar Index. 

Things don’t matter until they matter and they happen slow until they happen fast. Keep an eye on the US Dollar Index and Harmon’s 95 level. 

Stocktwits After-Hours

Stocktwits After-Hours: July 21, 2020

New Music Dropping from J Cole 👀

Upcoming Earnings

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

Links That Don’t Suck

🚀 Ed Yardeni Discusses The Fed’s Unprecedented Stimulus 

🏀 The Courts at the NBA Bubble Look Like Action Movie Sets

🏎 Ford unveils electric Mustang Mach-E race car with 1,400 horsepower

🚨 LA Records Highest Number Of Stolen Cars In Over A Decade

🛤 There is Nothing Wrong With a Traditional Career 

🧗‍♂️ Alex Honnold and Tommy Caldwell Complete Continental Divide Ultimate Linkup in RMNP