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
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
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