October 28th Is The “Best Day Of The Year”

Tale of the Tape

Good evening, y’all.

October 28th is historically the best day of the year in the S&P 500. (HBD, Detrick 🥳)

So of course 2020 flipped on us. Today was the 10th worst day so far this year. lol

The S&P 500 fell 3.5%. The Dow dropped 943 points. The Russell got ripped.

Energy sucked but tech was the worst sector. Maybe Einhorn was right…?
$XLK ▼ 4.24% | $XLE ▼ 4.18%

Real estate was the best sector. $XLRE only fell 2.22%.

Corona cases are rising and in case you forgot we crashed 33% in February following the outbreak. France will lock down on Friday. Is the US heading for another lockdown? Time will tell.

Snap closed $0.33 off it’s all time high. $PINS popped 20% after hours. See more below.

Here are the closing prints. It was ugly.

S&P 500	3,271	-3.53%
Nasdaq	11,004	-3.73%
Russell 2000	1,543	-2.97%
Dow Jones	26,519	-3.43%

Earnings Round-Up

Pinterest crushed 3rd quarter earnings with accelerating revenue and user growth. International users carried the user growth, up 46% YoY.

Here are the numbers:

EPS: $0.13 vs $0.03 est.
Revenue: $443M vs $383.5M est.
Monthly Active Users: 442M vs 436.4M est.

Ben Silbermann, CEO of Pinterest said this:

More than ever before, people are coming to Pinterest to get inspiration for their lives—everything from planning early for a socially distant Halloween to creating great home schools for their kids. Our top priority is to continue making Pinterest home to the most inspiring and actionable content. This quarter we launched a set of tools to empower creators to show and share their ideas with people who are ready to act.

$PINS was up as much as 30% after-hours.

Boeing reported Q3 earnings today and announced plans to cut 7,000 more jobs in response to the downturn in air travel. Revenue fell 56% YoY.

Here are the numbers:

EPS: ($1.39) vs ($2.52) est.
Revenue: $14.1B vs $13.9B est.

Boeing CEO Dave Calhoun had this to say:

The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term.

$BA fell 4.57% today.

General Electric topped earnings and revenue expectations before the open.

Here are the results:

EPS: $0.06 vs ($0.04)
Revenue: $19.42B vs $18.73B est.

$GE closed up 4.5% today.

Fastly missed on top and bottom lines in its Q3 earnings report. Revenue still grew 42% YoY with earnings up 69% YoY.

Here are the numbers:

EPS: ($0.04) vs $0.00 est.
Revenue: $70.6M vs $74.9M est.

$FSLY was up flat after-hours.

Etsy reported Q3 results after Wednesday’s close that came in above expectations. Revenue was up 128% YoY.

Here are the results:

EPS: $0.70 vs $0.57 est.
Revenue: $451.5M vs $412.7M est.

Josh Silverman, Etsy CEO said this:

We delivered very strong results during the third quarter, with consolidated GMS and revenue growth up 119% and 128% respectively, evidence of our focused execution, engagement with our buyers and sellers, and our strong brand, underpinned by the unique inventory in our marketplace… We’ve been able to sustain growth by driving retention and frequency of our existing buyers as well as becoming an important shopping destination for new buyers.

$ETSY was up 1% after-hours.

The Sun Shine Bright

The sun shined through today’s mayhem. The solar ETF, $TAN finished up 1%, so that’s something.

First Solar which is $TANs 4th largest constituent set at a 9-year high after it reported earnings.

Here’s the to-be-completed monthly chart:

And here’s the daily chart of the solar ETF. $TAN may have found support around the price level it gapped up on October 5th. Will this area hold? Who knows. Place your bets…

Big Tech Senate Hearings

Three big tech CEOs testified in front of the Senate today.

Facebook’s Mark Zuckerberg, Twitter CEO Jack Dorsey, and Sundar Pichai of Alphabet appeared on issues of competition, consumer privacy, and hate speech.

The release of the Social Dilemma earlier this year didn’t help their case, either.

Senator Marsha Blackburn said:

Big Tech companies have stretched their liability shield past its limits, and the national discourse now suffers because of it.

$TWTR tumbled 5%. $FB and $GOOGL fell 5.5%

Here’s the WSJ with more.