What A Week

Tale of the Tape

Good evening, everyone. The week is over. Cheers. 🥂

The Associated Press says Biden is on the cusp of presidency after gains in Pennsylvania. The major indices were pretty mellow as stocks may need time to digest this week’s gains. The S&P 500 and Nasdaq had their best week since early April.

Consumer staples and tech led. Energy was the only sector to drop more than 2%. Financials fell nearly 1%. 

The economy is slowly recovering. More on the October jobs report below. 

The pot stocks continue to grow. $MJ ripped ~9%.

Roku rallied 12.5% and Square soared 13% after last night’s earnings. Both stocks finished at new all-time highs. 

The Trade Desk topped $800/share. This was another earnings gap. More on $TTD below. 

Bitcoin is bouncing around 15,500. $BTC.X bopped +13% this week. We’ll have to see if the cryptocurrency freaks out over the weekend. 

Here are the closing prints: 

S&P 5003,509-0.03%
Russell 20001,664-0.96%
Dow Jones28,323-0.24%

Earnings Round-Up

The Hershey Company beat earnings expectations following a strong Halloween season. $HSY gained 3.3%.

Here are the results:

$1.86 vs $1.72 est.
Revenue: $2.22B +4.2% YoY

CVS Health also beat earnings estimates this morning. In addition to strong numbers, the company raised its FY20 guidance. 

$CVS surged 6%. Read the press release here.

The Company also announced that CEO Larry Merlo will retire next spring. Karen Lynch was named the next president and CEO of CVS Health. 

The Trade Desk reported earnings yesterday after the close. The Company crushed estimates and the stock soared 26%.

Check out these numbers:

EPS: $1.27 vs $0.45 est.
Revenue: $216M +31% YoY

$TTD Co-Founder and CEO Jeff Green said:

So far in 2020 we’ve seen several years of advertising disruption and innovation compressed into a few months. As a result, advertisers have become more deliberate and data-driven with every advertising dollar. That helped us deliver record quarterly revenue of $216 million and adjusted EBITDA of $77 million.

Here’s the daily chart. $TTD topped $800 for the first time ever.

Weekly Charts

It’s the end of another week. 

Here are a few charts that caught our eye.

We’ll start with the S&P 500. Following its monster week, $SPX flags out below its former highs. Will we break out or break down? Place your bets… 

Roku ripped to an all-time high. This chart is a beauty: 

Energy still sucks. $XLE was the only sector SPDR ETF to finish below Monday’s opening print. 

Marijuana had its best week ever. The pot stock ETF popped 27.43%.

The Economy

This morning we got the October jobs report. 

The US added 638,000 new jobs last month compared to the estimated 530,000. 

Unemployment dropped to 6.9%.

Eddy Elfenbein says:

We’re probably about 10 million jobs away from full employment.

Here’s Crossing Wall Street with more.

More Job Cuts

ESPN will lay off 300 employees and close 200 job openings due to the coronavirus pandemic. The ~500 jobs that will be eliminated account for ~10% of the Company’s workforce.

ESPN President Jimmy Pitaro said this in a memo:

The speed at which change is occurring requires great urgency, and we must now deliver on serving sports fans in a myriad of new ways.

ESPN parent company Walt Disney also laid off 28,000 employees back in September. 

Here’s the WSJ with more.

It’s Electric ⚡️

Bentley Motor wants to be “end-to-end” carbon neutral by 2030. 👏👏👏

The British luxury automaker presented its Beyond 100 strategy yesterday as it attempts to be a global leader in sustainable luxury mobility.

Bentley’s approach to redefining its business model will be built around its accelerated journey towards electrification. Having already committed that every model line will be offered with the option of a hybrid variant by 2023, with Bentley’s first pure electric model to be launched in 2025, Bentley is today announcing a move towards zero emission mobility.             

Following the introduction of the first Bentley fully electric model in 2025 – Bentley’s first cradle to grave fully carbon neutral car – Bentley will exclusively offer plug-in hybrid and electric models only within its range in 2026. By 2030, this will change to battery electric vehicles only.  

Here’s Bentley with more.

Touristy AF

Architects are designing The Red Sea Development, a one-of-a-kind luxury tourist resort in Saudi Arabia. 

The resort will be built on 90 islands between Umluj and Al Wajh and is said to be the most ambitious in the world

Resort designer Kengo Kuma said: 

We were attracted to The Red Sea Development Company as we shared the client’s vision to create a unique luxury tourism destination in the Middle East. This is a resort which seeks to embrace the natural setting and rich cultural history of the region.

Not a bad place to quarantine. 🏖️ Check out this paradise:

Links That Don’t Suck

📊 Are Fear, Greed, and Pride hurting your trading? Find out in this Infographic by IBD! *

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🎄 How a Fight Over Trees Transformed American Politics

🇮🇳 Amazon to Invest $2.8B to Build its Second Data Center Region in India