$HOG WILD

Tale of the Tape

Good evening, y’all. Stocks chopped around following yesterday’s beating.

The Nasdaq led while the small-caps lagged. The Russell 2000 closed at its lowest price since October 6th.

Industrials were the worst sector, dropping 2%. Financials fell 1.8%. Communication services and tech gained half a percent.

Bitcoin bopped another 4%. That’s within 2% of its June 2019 highs.

David Einhorn, founder of Greenlight Capital, thinks tech is in an “enormous bubble.” Maybe he’s right? Who knows. Einhorn said September 2nd was the top. We’ll hold him to that.

Here’s the Nasdaq-100 ETF. [$QQQ] September 2nd is highlighted by the red arrow.

Harley Davidson revved and soared 22% following earnings. See more below.

Caterpillar, the world’s largest construction equipment manufacturer, fell 3.25%.

Twitter topped last week’s highs. Social stocks are still hot.

Here are the closing prints:

S&P 500	3,390	-0.30%
Nasdaq	11,431	+0.64%
Russell 2000	1,590	-0.90%
Dow Jones	27,463	-0.80%

Earnings Round-Up

Caterpillar reported a 54% drop in Q3 earnings as equipment demand lowered in all regions.

Here are the results:

EPS: $1.34 vs $1.18 est.
Revenue: $9.9B vs $9.8B est.

CEO Jim Umpleby had this to comment:

Our third-quarter results largely aligned with our expectations, and we’re encouraged by positive signs in certain industries and geographies. We’re executing our strategy and are ready to respond quickly to changing market conditions.

$CAT fell 3.25%.

Harley-Davidson went hog wild. Q3 earnings crushed on top and bottom lines.

Here are the numbers:

EPS: $0.78 vs $0.19 est.
Revenue: $946M vs $844M est.

Jochen Zeitz CEO of Harley-Davidson had this to say:

We have driven significant progress across each key element of The Rewire playbook, and we believe the positive changes we have executed are setting our course for a winning future. We have started on our journey to become a high-performance company where business structure, leadership principles and our culture are all aligned. The platform we are creating will support the work ahead as we continue to develop and execute our new 5-year strategic plan, The Hardwire.

Harley-Davidson also unveiled a new electric bike called Serial 1. It looks pretty good…

$HOG closed up 22% and filled its February gap.

Here’s the daily chart.

Microsoft reported strong earnings results after the close. Revenue was up 12% and its Azure public cloud grew 44%.

Here are the results:

EPS: $1.82 vs $1.54 est.
Revenue: $37.15B vs $35.72B est.

Microsoft CEO Satya Nadella said this:

The next decade of economic performance for every business will be defined by the speed of digital transformation. We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs.

$MSFT was flat after-hours.