Tale of the Tape
Good evening, everyone. Stocks bounced back a little after yesterday’s tumble.
The major indices were green across the board, but we didn’t fully recoup yesterday’s losses.
The Nasdaq led. It gained 1.64%. The Dow lagged, only up 0.5%.
Here’s the daily chart of the S&P 500. We have a gap to fill if we want to go higher.
Communication services were the best sector. $XLC +2.5%. Healthcare and consumer staples both settled in the red.
Facebook, Apple, Amazon, Google, and Twitter all reported earnings after the close. See the round-up below. 🤠
$FSLR fell 6.3%. $NIO charged up 16%. $PINS popped 27%. It’s a stock picker’s market.
Netflix increased its prices. The stock popped. We’ll see if the price hike affects subscriber growth. 🤷♂️
Pelosi says she wants stimulus talks to restart but is waiting for Mnuchin. We still don’t have a deal.
Here are the closing prints:
| S&P 500 | 3,271 | +1.19% |
| Nasdaq | 11,004 | +1.64% |
| Russell 2000 | 1,543 | +1.19% |
| Dow Jones | 26,519 | +0.52% |
Earnings Round-Up
Google beat across the board after bouncing back in its core advertising revenue. YouTube ad growth was up 32% YoY. $GOOGL gained 8% after hours.
Here are the numbers:
EPS: $16.40 vs $11.29 est
Revenue: $46.17B vs $42.90B est.
Sundar Pichai, CEO of Alphabet and Google, said this:
We had a strong quarter, consistent with the broader online environment. It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.
Facebook’s results came in better than expected with decent revenue growth. It did see a decrease in users in the U.S. and Canada.
Here are the numbers:
EPS: $2.71 vs $1.91 est.
Revenue: $21.47B vs $19.8B est.
DAUs: 1.82B vs 1.79B est.
$FB was flat after hours.
Apple barely beat expectations but didn’t offer any guidance for the following quarter. iPhone sales fell 20% YoY.
Here are the results:
EPS: $0.70 vs $0.73 est.
Revenue: $64.7B vs $63.7B est.
Apple CEO Tim Cook said this:
Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive.
$AAPL fell 5% after hours.
Amazon earnings after the close were impressive. The e-commerce giant saw revenue grow 37% YoY.
Here are the results:
EPS: $12.37 vs $7.41 est.
Revenue: $96.15B vs $92.7B est.
$AMZN lost 1% after hours.
TWTR topped earnings estimates, but the stock tumbled after hours. Monatizable user growth under-delivered.
Here are the numbers:
EPS: $0.19 vs. $0.06 est.
Revenue: $936M +13.6% YoY
mDAUs: 187M vs. 195M est.
$TWTR was down 15% after hours.
Exxon’s Job Cuts
Exxon plans to cut 15% of its global workforce. That’s 14,000 jobs across the world.
The coronavirus pandemic, Europe’s new lockdowns, and the rise of renewable energy have all hit oil and gas industries. Do you remember when oil went negative…? oof.
In addition to the job cuts, Exxon also announced that it will maintain its dividend which breaks its 4-decade streak of increased dividends. $XOM is down 51% YTD.
Heads up, Exxon reports earnings on Friday.
The Economy is Healing
Today’s Q3 GDP report showed the best quarter growth in U.S. history at 33.1%. Wall Street’s expectations were 32%, so it wasn’t a grand slam.
The economy is recovering from the 31.4% loss in Q2. In the last 2 weeks, unemployment claims dropped by 709,000.
Things are looking up, but we still have a long way to go.
Here’s a chart of the US GDP:
And here’s Crossing Wall Street with more.
📺 Coming Soon…
Morgan Housel’s bestseller The Psychology of Money is coming soon to screens near you!
Mr. Housel announced yesterday that Dana Brunetti, the producer behind The Social Network, Captain Phillips, and 50 Shades of Grey, will bring his story to life.
This is going to be great. We can’t wait!
Congratulations, Morgan! 🍾🍾
Be sure to read the book first so you can sound smarter than all your friends.
“The book is better.”
🌌 Stocktwits After Hours
Tonight on After Hours:
Was That a Dead Cat Bounce?
Big Name Earnings
FB, AAPL, AMZN, GOOGL
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
🧐 Leon Black Offers More Details on Ties to Jeffrey Epstein
🎿 WNDR Alpine Develops Skis Made From Algae
🏔 Wall Street Writer Oliver Stone’s Former Colorado Ranch Is Listed for $24.5 Million
🧙♂️ Technical Analysis Radio: Jack Schwager
😳 Juul Slashes Valuation to $10 Billion, Half Its Size in January
💔 They Dreamed of ESports Glory. Then Their Bodies Broke Down
