Tale of the Tape

Good evening, y’all. It was one of those Mondays. Not quite like 1987, though.

Stocks rolled over and we still don’t have a stimulus. We’ll see if Washington can get its act together. In case you forgot, the election is in 2 weeks. 

The S&P 500 fell to prices not seen since early October. 

Every sector finished negative. Utilities was the best of the bunch. $XLU only fell 0.84%. Energy was the weakest. 

Pinterest pinned an all-time high. $PINS is up 145% YTD. 

$PENN dropped 8.5% but it is kinda forming a pennant… Breakout or breakdown? Place your bets… 

$DKNG dipped and flipped. The stock reversed off former highs & closed green.

Bitcoin has been bouncing. The crypto rypto traded at its highest price since early September. 

Here are the closing prints:

S&P 5003,426-1.63%
Russell 20001,613-1.24%
Dow Jones28,195-1.44%

🌌 Stocktwits After Hours

Tonight on After Hours:

Mixed Signals of an Economic Recovery
IBM Earnings Review
Netflix & Snap Earnings Preview

Listen: Spotify | Apple Podcast | Google

Earnings Round-Up

International Business Machines reported a 3rd consecutive quarter of revenue decline. The company didn’t offer new guidance during Monday’s earnings statement.

Here are the numbers:

EPS: $2.58 vs $2.58 est.
Revenue: $17.56B vs $17.54B est.

$IBM was down 1% after hours. 

Cadence Design Systems reported Q3 earnings today after the close. The electronic design automation company raised its full-year guidance and beat on top and bottom lines.

Here are the results:

EPS: $0.70 vs $0.61 est.
Revenue: $666.6M vs $642.1M

CEO Lip-Bu Tan had this to say:

Cadence delivered outstanding results in the third quarter by continuing to innovate and delight customers. System and semiconductor design activity remains strong and our Intelligent System Design strategy uniquely positions us to enable our customers to realize their cutting-edge designs. In the third quarter we expanded the scale and scope of our relationship with a global marquee company, and I am especially pleased with the momentum of our new systems products.

$CDNS was up 3% after hours.

AMC Theaters Reopen in NY🍿🎥

12 select AMC theater locations in New York will finally reopen this Friday, making New York the 44th state to open its movie theaters.  

AMC’s CEO, Adam Aron, commented on the reopenings: 

The reopening of movie theatres around the country is essential to the theatrical industry and the entire entertainment ecosystem. It has become clear that movie studios are not willing to release blockbuster products until key major markets are open. Therefore, it is a monumental step in the right direction for our entire industry that theatres are starting to open across the state of New York.

$AMC jumped this morning. It finished up 16.5%. 

Here’s the daily chart. $AMC is still down 51% YTD.

October 19, 1987

Black Monday was 33 years ago today. 

The S&P 500 fell 22% in one of the worst sessions in history. 

Walter Deemer shared the cover of The New York Times the day after the crash. 

Here’s the daily chart of the S&P 500. It took the $SPX 20 months to return to highs. Sheesh.

$SPX daily. (Sept. 1987 – Feb. 1988)

We weren’t around during that time so we asked the community what they remember about the day.

Jim O’Shaughnessy said the following:

The terror investors felt. It was palpable. No FinNews back then and I had an archaic “ticker” machine that you had to dial up and insert the phone handle into it to get quotes. Disbelief was rampant. Everyone’s first impression was we were heading into another Great Depression.

Jim also wrote a blog post about the crash. Read it here.

To cap it off, check out this clip of Market Wrap. Bill Griffeth interviews Paul Tudor Jones following the 1987 bloodbath. God bless the internet. 🙏

Some Monday Inspiration 🏈

On Sunday, Dolphins quarterback Tua Tagovailoa played football for the first time since his hip injury last November. 

Despite the injury that jeopardized his professional career, Tagovailoa was still the Dolphins’ 5th overall draft pick. 

The quarterback opened up about his first big moment back on the field: 

I think it was a very special moment for me because my parents weren’t here…so I tried to sit close to where we ended our drive at, and I ended up FaceTiming my parents because they couldn’t be here…That’s what I did, I went out there, and I talked to them…That’s what that moment was about.

Tagovailoa also reminisced about the crowd cheering his name: 

 I definitely could hear it. There was nothing else playing in the stadium, so I could hear that, and that was awesome. But to just be out there with my teammates, being my first time, and getting the support and love from them, I think that was super awesome.

Congrats to Tua, we love to see it! ❤️

Earnings This Week

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

Links That Don’t Suck

🌊 Tropical Storm Epsilon Forms, as Atlantic Nears Busiest Record Hurricane Season 

✈️ Op-Ed: Airlines don’t deserve another taxpayer-financed bailout

👔 There is Nothing Wrong With a Traditional Career

💡 Chamath Palihapitiya: Understanding Yourself

An Obscure American Automaker Now Has the World’s Fastest Car

⛰️ Colorado Wildfire Grows Into Largest in State History

💣 Army Wants New High-Powered Grenade Launcher to Blast Drones out of the Air