Tale of the Tape

Good evening everybody. Today was a huge day for earnings so we’re going to focus mostly on that.

The US Economy had its worst quarter ever and so we’ll pay a bit of lip service to that too. 

The president floated the idea of delaying the elections on Twitter this AM, which seems unusual to us, but we’re just a pack of stock junkies so what do we know about political affairs?

Four of the largest and most important companies in the universe reported earnings after the close. Facebook, Google, Amazon, and Apple all traded higher during the regular session. These four make up 40% of the Nasdaq 100 market cap. Incredible.

See below for the earnings deets on those four plus a host of other notables.

Oh, quick reminder – NBA starts tonight and you can catch the action on TNT and ESPN 🏀

S&P 500	3,246	-0.37%
Nasdaq	10,587	+0.43%
Russell 2000	1,495	-0.37%
Dow Jones	26,313	-0.85%

The Worst Economy Ever

Chart HT: Joe Weisenthal

The US Economy had its worst quarter ever. 

US GDP fell 32.9% in Q2, which was better than the estimate of -34.7% so things are looking up, right?

1,430,000 million people filed for initial unemployment benefits.

This is unprecedented stuff, especially with the accompanying buoyant stock market so we don’t really have a hot take.

Suffice to say, the chasm between the wealthy and the poor continues to widen.

Earnings Bonanza 

Apple reported earnings after the close today and the numbers look solid. It’s trading up 4% after-hours.

EPS: $2.58 vs $2.04 est.
Revenue: $59.7B vs $52.25B est.

$AAPL announced that it would split its stock 4 for 1 with trading to begin on a split-adjusted basis at the end of August. 

The timing here is no coincidence given the recent surge in retail trading. Lowering the stock price makes the shares more accessible to smaller traders.

Stock splits have gone out of favor over recent years but, given the environment and Apple’s lead, we wouldn’t be surprised to see more splits across the high priced names.

Amazon reported earnings today after the close. The company saw 40% revenue growth YoY which is ridiculous when you’re doing $88B in revenue for the quarter. 

$AMZN increased grocery delivery capacity by over 160%. The stock was trading up 5% after-hours.

EPS: $10.30 vs $1.46 est.
Revenue: $88.91B +40.2% YoY

If Amazon’s not more careful, pretty soon they’re gonna have to start paying some taxes 😉

Facebook beat on the top and bottom lines despite reporting its slowest revenue growth since the 2012 IPO. $FB saw an increase in user engagement. 

Boycotts did not seem to bother these animals one bit.

The stock is up 8% after hours.

EPS: $1.80 vs $1.39 est.
Revenue: $18.7B vs $17.4B est.

Google reported its first ever revenue decline in the company’s history and the stock was flattish after hours.

Here’s the numbers.

EPS: $10.13 vs $8.23 est.
Revenue: $38.8B -1.7% YoY

UPS delivered strong numbers before market open, ramped 14% for the session, and closed at an all-time high. 

Go Brown!

$UPS saw a boost in demand for e-commerce deliveries due to COVID. Thank god for the internet. 🙏

EPS: $2.13 vs $1.04 est.
Revenue: $20.4B +13.4% YoY

Qualcomm Check-In

Check this out y’all. Yesterday after the close, Qualcomm reported earnings, and today the stock closed at its highest level ever. Its former intraday all-time high was $100 on the dot, this coming on January 3rd, 2000. 

Qualcomm made an all-time high after trading in the wilderness for 20 years. 

Here’s the $QCOM daily chart from Nov. 1999 – June 2000. And below that is the $QCOM yearly chart. Holy freakin’ guacamole. 🤯

News From Space 🚀

NASA launched the Perseverance Rover from Cape Canaveral Air Force Station today. 

The Smart Car sized rover should get to the red planet in 7 months. We’ll keep y’all posted on any updates, but here are a few photos for your viewing pleasure. 

Here’s Space.com with more details. 

Earnings Tomorrow

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

Links That Don’t Suck

🌌 Stocktwits After-Hours: Economic Numbers Don’t Matter

🧘‍♀️ 20 Minute Everyday Vinyasa Yoga Flow

🚀 Michael Batnick Discusses the Relentless Top Heavy Stock Market

💪 What are your Trading Strengths?

❌ You Don’t Need Alpha

🏀 Everything we want to see now that the NBA has finally returned

📐 Brave New World Shows One Way to Design a Utopia

🏒 Marc Staal Avoids Big Injury in Rangers’ Loss to Islanders 

📱 Google Will Announce New Budget Phone on Aug. 3