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 5003,390-0.30%
Russell 20001,590-0.90%
Dow Jones27,463-0.80%

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.

Bitcoin ₿oi!

13,868. That was Bitcoin’s high on June 24, 2019. 

Today, the cryptocurrency ticked a 2020 high of 13,767.

Forbes thinks COVID-19 made BTC more interesting to investors this year

Paul Tudor Jones said he would buy Bitcoin to hedge against inflation: 

[Buying Bitcoin] is like investing with Steve Jobs and Apple, or investing in Google early. 

Maybe this is real life.

Will Bitcoin break 14K? Place your bets… 

AirBnB Selects the Nasdaq

Today, Airbnb announced that it will list its IPO on the Nasdaq. 

The offering is expected to raise $3B, making Airbnb’s IPO the third biggest Nasdaq listing after Facebook and Mondelez.

The company declined to comment and did not give further detail. 

This IPO should be fun.

Here’s Bloomberg with more.

Shopify & Tik Tok

TikTok and Shopify announced a new partnership today

1M businesses will now have the ability to create ad campaigns directly on TikTok’s platform without leaving Shopify’s interface. 

TikTok’s VP Blake Chandlee said this about the partnership: 

We are delighted to partner with Shopify and provide a channel for their merchants to reach new audiences and drive sales on TikTok.

Meanwhile, TikTok’s next hearing with the Trump Administration is set for early November

🌌 Stocktwits After Hours

Tonight on After Hours:

Microsoft Earnings Recap
Shopify Inks A Deal With Tik Tok
Does $CAT Feel the Pain?

Listen: Spotify | Apple Podcast | Google

Earnings This Week

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

Links That Don’t Suck

🕴🏾 Jay-Z Announces New Marijuana Brand Monogram

❄️ Teton Gravity Research: Make Believe

📈 Mercedes-Benz to Lift Aston Martin Stake to up to 20% by 2023

🛢 Does The Price of Oil Even Matter Anymore?

💹 Lux Capital’s SPAC Lux Health Tech Acquisition Prices $300 Million IPO at $10

🕹 PS5 vs. Xbox Series X: The Next-Gen Consoles in Photos

🌌 ICYMI: Stocktwits After Hours –