Where Do We Go From Here?

Tale of the Tape

Good evening y’all.

The S&P 500 closed at all time highs today. 3389.

No big deal.

Big Cap Tech led the way as it has throughout the dazzling ascent. The Nasdaq 100 rallied 1% even as the Dow and Russell fell.

Amazon gained 4%, breaking out to an all-time high. Tesla gained another 3%. Workday gained 3.5%. Zoom gained 4%. Adobe up 2.6%. Google up 2.3%. Netflix up 2%. Lululemon up 1% all-time highs…

Apple gained .8%, all-time high and 1.2% from the Two Trilly Market Cap Scenario.

It’s getting silly out there in tech and we’d say it’ll all end badly but who knows, maybe it’ll all end splendidly with world peace, unlimited LTE, free immortality pills, and all of us selling the top print in a moment of universal splendor.

You never know…

US Housing Starts rose 22.6% well ahead of expectations. This seems huge but is impossible to interpret because 2020. You can read more about it here if you must.

Here’s your closing prices, people:

S&P 500	3,389	+0.23%
Nasdaq	11,210	+0.73%
Russell 2000	1,569	-0.99%
Dow Jones	27,778	-0.24%

Earnings Wrap-Up

Walmart reported in the AM and blew out estimates. E-commerce sales were up 97% with same-store sales growing 9.3%. It was the company’s largest earnings surprise in 31 years.

CEO Doug McMillon said Walmart expects to launch a membership service named “Walmart+” that would speed up deliveries through curbside pickup and home delivery.

$WMT still closed down 0.66% for the day.

Here are the numbers:

EPS: $1.56 vs $1.25 est.
Revenue: $137.74B vs $135.48B est.

Kohl’s reported earnings before the open today. Earnings weren’t as bad as expected but they still sucked. Revenue fell 23% in Q2 but digital sales were up 58%.

CEO Michelle Gass had this to say about the upcoming holiday season, “As we look ahead, we are planning for the crisis to continue to impact our business in the near-term.”

$KSS was down 14.67% today. Oof.

Here are the numbers:

EPS: ($0.25) vs ($0.83) est.
Revenue: $3.21B vs $3.09B est.

Sea Limited reported worse than expected earnings but beat on revenue before the market open.

Sea runs one of the top online gaming platforms in SE Asia. Its services include mobile gaming and esports.

$SE saw users up 61% from the same quarter a year ago along with paying users growing 91% to 49.9 million.

The stock jumped 8.71% and closed at an all-time high. It’s up 263% YTD.

Here are los números:

EPS: ($0.68) vs ($0.46) est.
Revenue: $1.29B vs $1.01B est.

Home Depot beat Q2 earnings estimates handily as consumers spent more time and money in their homes during the Covid-19 lockdowns.

Same-store sales increased 23.4% thanks to big items like patio furnishings and appliances. Management did caution that Q2 trends likely won’t continue throughout the rest of 2020.

And the results:

EPS: $4.02 vs $3.71 est.
Revenue: $38.05B vs $34.42B

$HD traded 1.12% lower after the report.

All-Timers

We got new all time highs in the S&P 500.

Since the March 23rd bottom the S&P 500 has rallied 40%. We gotta thank big cap tech for its service this year.

Apple, Amazon, Facebook and Microsoft make up nearly 20% of the entire S&P 500 and these stocks have been on crack since the bottom. Can this last? Place your bets…

Here’s the chart of the four from the bottom:

Another EV SPAC???

Guess what people, we have another EV company that is looking to go public via SPAC.

The Los Angeles based start-up, Canoo will offer electric vehicles via subscription.

Canoo has agreed to merge with Hennessy Capital Acquisition Corp ($HCAC) and will eventually be listed on the Nasdaq under ticker, $CNOO.

This automobile looks kinda goofy but who are we to judge? 🤷‍♂️

Today on Stocktwits…

JC Parets shared a chart of the Goldman Sach “Finance Reimagined” ETF, $GFIN.

$GFINs Top 10 Holdings Include:

Mastercard
Visa
Paypal
American Express
Intuit
Square
Fiserv
FleetCor Technologies
Worldpay
Fidelity National

Is $GFIN about to break out? Place your bets…