Tale of the Tape

Good evening, folks. Today is only Tuesday…  😅

The major indices were slightly sluggish. The Russell 2000 was the only positive Index. The Dow lagged and was down 0.56%. We’ll see what tomorrow brings. 

Energy was the strongest sector. $XLE is up 31% in the last 14 sessions, but it’s still down 40% in 2020. Utilities dropped 2%.

Bitcoin bopped. Again. $BTC.X ticked $17,880, only ~11.5% away from its highest price ever. It’s not just bitcoin… Riot Blockchain ripped on no notable news. The stock gained 48% and traded more shares today than ever before.

Check out the daily chart:

The Home Depot and Walmart reported earnings early this morning. The big box retailers beat estimates, but the stocks stalled.

$HD ▼ 2.5% | $WMT ▼ 2%

Here are the closing prints: 

S&P 5003,609-0.48%
Russell 20001,791+0.37%
Dow Jones29,783-0.56%

Earnings Round-Up

The Home Depot beat estimates as the coronavirus ignites a home improvement boom. $HD also agreed to buy $HDS yesterday in an $8.7B deal.

Here are the numbers:

EPS: $3.18 vs $3.08 est.
Revenue: $33.54B vs $31.9B est.

And here’s a cool infographic:

$HD fell 2.5%.

Walmart topped Q3 expectations as e-commerce sales grew 79%.

Here are the stats:

EPS: $1.34 vs $1.19 est.
Revenue: $134.71B vs $132.4B est.

$WMT was down 2%.

Sea Limited’s Q3 earnings came in lower than expected, but the company did update its full-year guidance.

Here are the results:

EPS: ($0.69) vs ($0.53) est.
Revenue: $1.21B vs $1.4B est.

Sea Limited CEO Forrest Li stated:

We are particularly encouraged by the strong active and paying user growth for the quarter. This reflects our ability to continually deliver high quality content that attracts and engages users.

$SE stock dropped 4.26%.

Nio’s Q3 losses were less than expected. Shares slid 3% after hours.

Here are the numbers:

EPS: ($0.12) vs ($0.15) est.
Revenue: $666.6M vs $628M est.

William Bin Li, CEO of NIO, said:

We achieved a new record-high quarterly deliveries of 12,206 ES8s, ES6s and EC6s in total in the third quarter of 2020, followed by the best-ever monthly deliveries of 5,055 vehicles in October. In view of the growing market demand for our competitive products, we are motivated to continuously elevate the production capacity to the next level. We expect to deliver 16,500 to 17,000 vehicles in the coming fourth quarter.

Tesla To The S&P

Yesterday, S&P Global announced that Tesla will join the S&P 500 on December 21. The addition will be the index’s largest-ever new company. 

In fact, Elon’s EV maker is so big that S&P Dow Jones is thinking of adding the company in 2 separate parts. 🤭

JMP Securities analyst Joseph Osha said this about the electric new addition: 

[The news of S&P 500 inclusion] will of course likely drive a rally in the stock today. We think there is still upside. Tesla should be valued like other ‘category killer’ companies such as Apple Inc., instead of compared with other car companies.

Tesla gapped up and ticked $462 today. Here’s the daily chart:

And here’s Bloomberg with the more. 

Airbnb Plans To Go Public

Despite a rocky start to 2020, Airbnb shows signs of recovery and plans to go public. 

In Q2 2020, Airbnb’s revenue dropped 72% and the company laid off a quarter of its workforce due to COVID-19. But in Q3, the company showed signs of a rebound

The company’s founders said this about its pandemic recovery: 

[Customers] decided to get in their cars and travel close to home, often staying in small towns and rural communities. Our business rebounded faster than anyone expected, and it showed that as the world changes, our model is able to adapt.

AirBnb plans to trade under ticker $ABNB before December 31. 

Read the S-1 here.

Launch Day 💰

How I Invest My Money launched today.

25 financial experts share how they navigate markets with their own money. This group of portfolio managers, financial advisors, venture capitalists, and other experts detail the “how’s” and the “why’s” of investing.

How often do experts pull back the curtain and tell us how they invest their own money? Never… until How I Invest My Money.

You can buy the book here

🌌 Stocktwits After Hours

Tonight on After Hours:

Tesla to the S&P 500
NIO Reported Earnings, What’s New?
Is Amazon Taking Over the World?

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

💊Introducing Amazon Pharmacy: Prescription Medications Delivered

💹 Robinhood Seeks Advisers for Potential IPO Next Year

🛢Trump Administration Takes Final Steps to Auction Drilling Rights in Arctic Wildlife Refuge

🧾 U.S. Retail Sales Climbed at a Slower Pace in October

🚙 Hyundai faces Lawsuit over EV Fires as GM Launches Recall

🦠 Coronavirus Vaccine Unproven? No Problem in China