The Russell Rallied

Tale of the Tape

Good evening y’all. Another day, another dollar.

The Russell 2000 was the only major index to finish green following this morning’s weakness. More on the small-caps below.

Jobless claims increased since last week. A stimulus would probably help. 

Energy was the strongest sector. You don’t see that every day.

Healthcare and communications lagged.

The Senate might sepenoa Twitter. We’ll keep an eye.

Fastly fell 26% and closed at its lowest price since September 24th.

GameStop gained 13%. 

Lyft might need a lift. The stock fell 4% and closed at a 6-month low. whoa…

Here are the closing prints:

S&P 5003,483-0.15%
Russell 20001,638+1.06%
Dow Jones28,494-0.07%

🌌 Stocktwits After-Hours

Today on After Hours:

Early Morning Weakness 
Energy Actually Led?
Fastly is Falling. Again.

Spotify | Apple Podcast | Google

Fill the Gap?

The Russell 2000 ETF $IWM undercut its August 11th high by 1 penny before jumping 2% intraday.

Here’s the daily chart:

The small-caps have been chopping in these waters since before the 2018 trade war. Now $IWM is hovering just under February’s gap down. 

Will we fill the gap? Place your bets… 

Here’s the unfinished weekly chart:

Earnings Round-Up

Taiwan Semiconductor Manufacturing topped Wall Street’s Q3 targets today. Sales for the world’s leading chip foundry grew 22% from the year-earlier period. 

EPS: $0.90 vs $0.81 est
Revenue: $12.14B (+29.1% YoY)

CFO Wendell Huang had this to say:

Our third-quarter business benefited from the strong demand for our advanced technologies and specialty technology solutions, driven by 5G smartphones, HPC (high-performance computing) and IoT (Internet of Things) applications. Moving into fourth-quarter 2020, we expect our sequential growth to be supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related applications.

$TSM finished the day up 1%.

Morgan Stanley’s Q3 earnings show a 25% increase from profits a year ago. That’s another promising big bank recovery.

EPS: $1.66 vs $1.28 est
Revenue: $10.61B (+5.8% YoY)

Read the press release here

$MS jumped 1%.

Charles Schwab’s earnings were down 27% from a year ago with revenue falling by 10%. On October 6, Charles Schwab completed its $26B takeover of TD Ameritrade. The brokerage giant now has $6T in assets throughout 28M accounts 😲

EPS: $0.51 vs $0.47 est
Revenue: $2.45B (-9.6% YoY)

$SCHW gained 5%.

Intuitive Surgical reported better-than-expected earnings and sales after the bell today. The medical device maker failed to provide full-year guidance.

Here are the numbers:

EPS: $2.60 vs $1.48 est
Revenue: $1.08B (-4.4% YoY)

$ISRG was down 2% after hours.

A Real Estate Update

Real estate prices are going haywire thanks to the pandemic. 

In New York City, retail rent plummeted 17%. Rental price per square foot fell 52%. 

On Madison Avenue, 35% of retail space is available and in Times Square, 29%. There’s also an 18% decrease in Herald Square rent. Check this out: 

Meanwhile, Florida is buzzing

In Palm Beach, average Q3 home prices reached $7M and September saw a 62% increase in signed housing contracts. 79% of listed homes were sold.

Miami, Boca, and Ft. Lauderdale are all seeing similar price surges. Guess everyone’s headed to the beach 🤷 🏖️  

DraftKings Deals

DraftKings added yet another deal to its lineup today after it agreed to a media partnership with Turner Sports

$DKNG will become an exclusive sportsbook and daily sports provider across Turner Sports and Bleacher Report properties.  

The company’s press release stated: 

Under the arrangement, DraftKings will provide sports betting information and daily fantasy content across Turner Sports telecasts and Bleacher Report digital channels including the B/R app.

18 states (including Washington D.C.) permit online sports betting. This also includes New Jersey, which just broke the all-time monthly wagering record with over $748.5M in wagers throughout September. 

Earnings Tomorrow

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

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