JPMorgan’s Traders Crushed It

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:

S&P 5003,511-0.63%
Russell 20001,636-0.74%
Dow Jones28,679-0.55%

🌌 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

Earnings Round-Up

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