Tale of the Tape
Good evening, everyone. We made it through Election Day but nobody knows nothin’ yet.
Wall Street welcomed the results we got. The tech-heavy Nasdaq ripped roughly 4%. The S&P 500 soared 2.2%. Small caps struggled, $IWM finished flat.
Healthcare and communication services surged over 4%. Technology jumped 3.9%.
Financials fell and regional banks were rough. $KRE lost 7% and closed only $0.04 off its low.
Emerging markets climbed from a 2-year base. $EEM still trades 15% below its high from before the Global Financial Crisis.
Bitcoin brooo… 🧢 The cryptocurrency continues to grind higher. Will Bitcoin break out? Place your bets…
Biogen soared. It brought Biotech with it. Read more below.
Here are the closing prints:
| S&P 500 | 3,443 | +2.21% |
| Nasdaq | 11,590 | +3.85% |
| Russell 2000 | 1,615 | +0.05% |
| Dow Jones | 27,847 | +1.34% |
Earnings Round-Up
Wendy’s reported quarterly earnings before the opening bell. The hamburger chain beat on earnings, but missed revenue estimates.
Here are the numbers:
EPS: $0.19 vs $0.17 est.
Revenue: $452.2M vs $455.6M est.
CEO Todd Penegor said:
In the third quarter we posted our highest Global same-restaurant sales growth performance in over 15 years on top of outsized growth in the prior year. In addition to these very strong sales, our restaurant economic model continues to strengthen, with Company-operated restaurant margin expansion compared to the prior year, despite significant commodity headwinds.
$WEN fell down 5.83% today.
Qualcomm earnings came in after the close. The semiconductor company beat estimates while also guiding higher.
Here are the results:
EPS: $1.45 vs $1.17 est
Revenue: $6.5B vs $5.93 est.
Here’s what Qualcomm CEO Steve Mollenkopf said:
Our fiscal fourth quarter results demonstrate that our investments in 5G are coming to fruition and
showing benefits in our licensing and product businesses.
Here’s a daily chart of $QCOM. Note the earnings gap through the Jesse Livermore $100 ghost level.
Here’s an excerpt out of the classic Reminiscences of a Stock Operator, by Edwin Lefevre:
It was an old trading theory of mine that when a stock crossed $100, $200 or $300 for the first time the price does not stop there but goes a good deal higher, so that if you buy it as soon as it crosses the line it is almost certain to show you a profit.
JFrog reported its first earnings as a public company after the close. Revenue grew 40% YoY.
Here are the numbers:
EPS: $0.05 vs ($0.04) est.
Revenue: $38.9M +40% YoY
JFrog CEO Shlomi Ben Haim said:
In our first quarter as a public Company, JFrog’s demonstrated growth, high retention, and strong momentum reflected the mission-critical nature of JFrog products to our customers. Our customers continue to adopt cloud-based and hybrid solutions as they embrace digital transformation through modern, cloud-native technologies. As DevOps continues to change the software update landscape, we look forward to leading the market in the fourth quarter and beyond.
$FROG was down 3% after-hours.
Biogen Broke TF Out
Shares of Biogen ($BIIB +44%) exploded higher after the biotech’s experimental Alzheimer’s disease therapy appeared effective by the FDA.
If the drug becomes approved, revenue in 2025 is expected to reach $4.7B.
The Biotech ETF $XBI closed up 6% at a new all-time high.
Here’s the daily chart of $BIIB, up 20% YTD.
Rideshare Rejoice
California Proposition 22 passed.
As a result, Uber and Lyft drivers will not be classified as employees in the state.
But drivers will still get some benefits, like health insurance.
Companies spent ~$200M in support of the proposition. Without it, ride-sharing business models would be less profitable.
Uber and Lyft raced higher on the result.
$UBER +14.59% | $LYFT +11.28%
$UBER is scheduled to report earnings tomorrow amc.
$LYFT is scheduled to report earnings on November 10.
U.S. Exits Paris Climate Pact
The U.S. officially pulled out of the Paris climate pact today.
The United States emits more greenhouse gases in the world than every country except China. Pollution affects the entire Earth. If something is going to change, everyone will have to come together. Who knows if that’ll happen. 🤦♀️
Trump and China have a rocky relationship. If Former VP Joe Biden gets elected, he said he will rejoin the agreement.
Time will tell. 🤷♀️ 🇺🇸 🌎
Here’s a photo of Los Angeles during the lockdown:
Look at the blue sky. What if that was everyday…?
🌌 Stocktwits After Hours
Tonight on After Hours:
Winners and Losers from The Election
Rideshare Soars
Listen here: Spotify | Apple | Google
Earnings This Week
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
📈 MasterClass Series: Seizing the Moment – Board Leadership in the Stakeholder Era
🎙 Jack Schwager: Unknown Market Wizards
🐺 Colorado Wolf Vote Too Close to Call
🍄 Oregon Becomes First State to Legalize Psychedelic Mushrooms
🚛 $60M Worth of Meth Discovered In Commercial Rigs
📈 Make Quick-Hit Trades and Keep the Profits Rolling in with SwingTrader by IBD!*
