Tale of the Tape

Good evening everybody. It was hot as Hell on Wall Street today with temps in the upper 90s, while stocks were a Summer yawner – flattish on dribbling volume. 

The big news came after the bell with Tesla and Microsoft reporting earnings. See below for more on both.

Energy and Financials were the only 2 red sectors. Blasé blah…

AMD ripped another 8% and closed at an all-time high. Best Buy gained 8% on good online sales news. Lockheed Martin was up 5% on the healthy earnings and word that the Pentagon gave them gobs of COVID cash.

Here’s your closing prices for the major equity indices:

S&P 500	3,276	+0.57%
Nasdaq	10,706	+0.24%
Russell 2000	1,490	+0.18%
Dow Jones	27,005	+0.62%

Iron Man Elon

In case you haven’t heard, Tesla reported earnings after the close. 

Sorry shorts, Iron Man Elon delivered again. $TSLA beat by a lot and reported its 4th consecutive profitable quarter, making the company eligible to join the S&P 500. 🤯🤯🤯

Here are some numbers:

Earnings: $2.18 vs ($0.71) est.
Revenue: $6B vs $4.7B est.

90,650 vehicles were delivered in Q2 vs estimates of 72,000 vehicles. 

$TSLA was up 6% after-hours.

This stock is obviously a rocket shot of momo lunacy and it is sublime. If you are trying to reason with it or performing your discounted future cash flow analysis you are missing the point.

Nothing will matter until it matters and good luck guessing when that will be.

Here’s more on the report anyway.

Microsoft

Microsoft reported earnings for its fiscal Q4 and full year. The company beat on the top and bottom lines. Revenue grew 13% and it was its most profitable year ever. 

Here are the basics:

Earnings: $1.46 vs $1.38 est.
Revenue: $38B vs $36.6B est.

Nevertheless, the stock was down 2.5% in after hours trading on word of slowing growth in Cloud Products – a little surprising to us given the explosive growth in related services.

Here’s more from CNBC.

Chipotle Whatevs…

Chipotle reported after the bell and did fine.

$CMG saw digital sales increase by 216% as states closed dining rooms, which was its savings grace. The Mexican grill failed to provide an updated forecast for the remainder of 2020.

Here’s the earnings menu:

Earnings: $0.40 vs $0.51 est.

Revenue: $1.4B vs $1.2B est.

The stock is trading down 1% after hours on the news, big whoop but up over 121% from the March 18th bottom and 41.59% YTD.

Molten Lava 🌋

Precious metals have been molten 🔥

Gold is up 22% YTD and it rose another 1% plus today.

It’s getting interesting from a long-term technical perspective and so we checked in with our brilliant pal Chris Kimble at Kimble Charting Solutions who gave us a peek at what a monthly gold candlestick chart would look like if July ended today.

This would mark an all-time monthly closing high, taking out the 2011 high. 

We’re kinda pulling for the gold bugs here. Nobody deserves to be wrong forever.

Meanwhile, silver has been even stronger recently, gaining 28% YTD and 25% in July alone. 

Here’s more chart art from Kimble showing the bullish reversal pattern in the Silver/Gold Ratio:

Oh Yeah, Musk Wants to Put Chips In Your Brain

What do you do if you’re Elon Musk and it’s gotten boring (pun intended) reinventing the automobile industry and shooting rockets into space?

That’s right, you begin implanting computer chips into your freaking brain. 

Musk’s other other startup called Neuralink is a brain-computer interface play. Imagine streaming music directly into your brain, no earbuds required, or getting all AI up in your noggin.

Apparently, the brain-chip bluetooths directly to your phone. lol! Whatever, sounds totally insane. All the best ideas do.

Read more about it here.

Stocktwits After-Hours

Stocktwits After-Hours: July 22, 2020

Earnings Tomorrow

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

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