$MJ Had Its Best Day EVER

Tale of the Tape

Good evening, everyone.

The market of stocks rallied on back-to-back days following the U.S. Election. Votes are still being counted, but neither candidate has surpassed 270 electoral votes. Biden sits at 264. Trump has 214. Nothing is official and lawyers are involved. Here’s the Associated Press with coverage.

Now back to stocks… The S&P 500 nearly gained 2%. The Nasdaq and Russell 2000 ripped roughly 3%. It was a strong day across the board.

Basic materials broke out of the big ol’ base. Tech rallied 3%. Energy was the only sector not green. $XLE was flat.

Regional banks roared following yesterday’s beating. $KRE gained 4.8%, but the regional bank ETF is still down 27% YTD.

The sun shined bright today. $TAN surged 11.5%. $JKS jumped 28%. Hot damn. 🥵

The pot stocks popped. Why didn’t they surge following yesterday’s results? Who knows. Read more on marijuana below.

Here are the closing prints:

S&P 500	3,510	+1.95%
Nasdaq	11,890	+2.59%
Russell 2000	1,660	+2.78%
Dow Jones	28,390	+1.95%

Earnings Round-Up

Yeti crushed Q3 earnings as the pandemic aided its outdoor product business. Profit rose 126% and revenue was up 29%.

Here are the numbers:

EPS: $0.61 vs $0.37 est.
Revenue: $291.61M vs $264.73M est.

$YETI CEO Mr. Reintjes said:

YETI’s performance in the quarter and throughout 2020 is a result of the incredible efforts of our global employees who have not only adapted, but thrived in this extraordinary environment, and our customers and partners who have continued to show their support and confidence in our innovation and our brand.

$YETI jumped 16.5% and closed at all-time highs.

Square Q3 earnings grew 36% YoY and revenue jumped 140%.

Check out these results:

EPS: $0.34 vs $0.16 est.
Revenue: $3.03B vs $2.07B est.

The Company said this in its shareholder letter:

Our results in the third quarter highlight our ability to reach new customers as we drove strong acquisition across both Seller and Cash App. While the macroeconomic environment remains uncertain, we continue to believe that our Seller and Cash App ecosystems are well-positioned to benefit from the acceleration of secular shifts, such as omnichannel commerce, contactless payments, and digital wallets for consumers.

$SQ was up 6% after hours.

Roku earnings came in after the close. The streaming company beat estimates and even posted a profit.

Here are the numbers:

EPS: $0.09 vs ($0.40) est.
Revenue: $451.7M vs $366.3M est.

$ROKU ran 4% after hours.

Uber saw revenue decline 18% YoY as bookings from food deliveries topped bookings for rides and mobility.

See the numbers h ere.

EPS: ($0.62) vs ($0.65) est.
Revenue: $3.13B vs $3.20B est.

Uber’s CEO, Dara Khosrowshahi, said:

Despite an uneven pandemic response and broader economic uncertainty, our global scope, diversification, and the team’s tireless execution delivered steadily improving results, with total company Gross Bookings down just 6% year-on-year in September.

$UBER was down 1% after hours.

General Motors shattered Wall Street’s estimates for Q3 earnings. CEO Mary Barra highlighted the company’s new and proprietary Ultium battery technology along with demand for the Hummer EV.

Here are the results:

EPS: $2.83 vs $1.47 est.
Revenue: $35.5B vs $35.5B est.

Barra said this on the earnings call:

This year, and the third quarter, is a testament to GM’s resilience. We entered the pandemic in a strong position and acted decisively to keep our teams safe, conserve cash and preserve liquidity, all while keeping our critical product programs on track. Now we are well-positioned to meet rising customer demand, accelerate our transformation and deliver our vision of a world with zero crashes, zero emissions, and zero congestion.

$GM jumped 5.4%.

Weed Is Tight, Kinda

Pot stocks soared after yesterday’s drag. The marijuana ETF ripped 10.54%, its best daily percentage gain ever.

Mississippi, Montana, South Dakota, and New Jersey all legalized marijuana this week.

NYC even said it may look to legalize in 2021. Gov Cuomo said this about weed in the Big Apple 🍎:

Marijuana, I’ve supported it for years. The question becomes about the money, about the distribution and the power. It always comes down to money and power: Who gets the licenses and who gets the money?

Here’s the daily chart of the marijuana ETF:

Although today was its best day ever, $MJ is still down 27% YTD and down more than 50% since inception.

Bitcoin Bro 🧢

Bitcoin was trending all day on Stocktwits. The crypto cracked through 15,000 for the first time since January 9, 2018.

In case you weren’t watching or forgot the crypto craze of Fall 2017, it was nuts.

Here’s the cover of Fortune magazine from September 2017:

Everyone and their mother was buying Bitcoin. Even Kodak tried to pivot. 😂

It was a classic bubble burst. $BTC crashed from 19K to under 6K in 2 months. Now, Bitcoin is breaking out again. Will we see new highs soon? Who knows.