Tale of the Tape
Good evening, y’all. Stocks were kinda quiet.
The major indices all closed negative but none fell more than 0.75%. Maybe we’re digesting yesterday’s gains? Place your bets…
Financials, real estate, and energy all dropped more than 1.5%. Communication services was the only green sector.
JPMorgan reported better-than-expected Q3 earnings, but the stock dropped 1.7%. Citi fell 5% after releasing its numbers. Ooops. 💩🏦
Apple unveiled its latest and greatest. Wall Street wasn’t overwhelmed.
Roku ripped your face off. The stock is up 49% in the last 4 weeks.
Peloton was a $30 stock to start 2020. It’s now $130. Having fun yet?
Here are the closing prints:
🌌 Stocktwits After Hours
Tonight on After Hours:
Blackrock Blasts Off
$JPM and $C Earnings Review
Did Apple’s Event Underdeliver?
Netflix Ends Free Trials
Listen: Spotify | Apple Podcast | Google
The banks are recovering… slowly.
JPMorgan reported strong numbers as the bank’s equity markets division lifted quarterly revenue. Total markets revenue was up 30%.
EPS: $2.92 vs $2.23 est
Revenue: $29.9B -3.0% YoY
CEO Jamie Dimon commented on the bank’s recovery from Q1:
Home lending benefited from strong production margins, and combined debit and credit card spend showed positive year-over-year growth in September for the first time since the widespread shutdowns.
Citigroup also improved during Q3:
EPS: $1.40 vs. $0.85 est
Revenue: $17.3B -7.0% YoY
Both JPMorgan and Citigroup are reducing credit loss from earlier this year.
Meanwhile, bank trading revenue is soaring.
Big banks warn of halted recovery without government stimulus, though. 🤦
Here’s Citi’s press release.
Johnson & Johnson reported solid Q3 earnings, relieving investors concerned about the company’s paused vaccine trials (read more below).
Here are the numbers:
GAAP EPS: $1.33 vs $1.70 est
Revenue: $21.08B +1.7% YoY
Here’s the press release.
$JNJ Paused Vaccine Trials
Johnson & Johnson paused its COVID vaccine trials because of “an unexplained illness in a study participant.”
The company said:
[Serious adverse effects] are an expected part of any clinical study, especially large studies.
$JNJ is down 2.29% after Monday’s announcement despite strong Q3 results.
The company’s CEO, Alex Gorsky, commented on the company’s vaccine trials and earnings this morning:
Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals. I am proud of the relentless passion and Credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic.
Nasdaq Next Gen
Invesco just launched the NASDAQ Next Gen 100 ETF trading under the ticker, $QQQJ.
The baby brother to the Qs will hold the 100 largest companies outside the NASDAQ 100. It’s the NASDAQ 101-200. 👶
Here are the top-10 holdings in the ETF:
And here’s the sector allocation:
The energy sector is less than one half of one percent of the ETF. Wow.
See the prospectus here.
The Apple Event
Apple introduced new iPhones and a mini Homepod today.
The new phones are 5G-compatible for whenever the networks get up to speed.
The company also unveiled the iPhone 12 mini, bucking the “bigger screen, the better” trend. We’re intrigued.
Here’s Apple with more.
$AAPL finished down 2.65%. The stock held yesterday’s gap so far.
Here’s the 2-day 15-min chart:
Earnings This Week
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
🎧 Barry Ritholtz Joins Howard Lindzon on ‘Panic With Friends‘ to Talk Financial Twitter, Bloomberg, His Dream Dinner Guests, and More
🕴 Meet Kareem Daniel, the Head of Disney’s New Distribution Unit
☀️ Solar Pushes Aside Coal as the Cheapest Fuel for Power, IEA Says
👩 Amy Coney Barrett’s Supreme Court Hearing, Day Two – Live Updates
🇨🇳 Dalio Says ‘Time Is on China’s Side’ in Power Struggle With U.S.
👷 JPMorgan Sticks with Plan to Build Giant New York Headquarters
🎶 Gen Z Is Taking the Reins to Rebuild Society