Monday, October 19, 2020 – DIA 282.03 -1.38%, QQQ 283.80 -1.63%, 342.01 -1.52%
No meaningful data was released. The equity markets gapped up on the open but began to fade within half an hour. Selling was steady and orderly throughout the day. A bright spot on the day was Western Digital (WDC) 40.92 +7.85% which broke out to a fresh two-week high, the company has earnings on Oct. 28 after the market close. Under Armor (UA) 11.56 +2.30% scheduled its earnings release for October 30 before the market opens. On the downside Apple (AAPL) 115.98 -2.55% saw profit-taking despite positive news reports pointing to a strong reception for iPhone 12. Johnson & Johnson (JNJ) 144.32 -2.55% sold off to a two-week low after the company paused a trial for the COVID-19 vaccine. On a technical basis, the company’s shares have underperformed since April.
Tuesday, October 20, 2020 – DIA 282.95 +.33, 284.41 +.21, 343.38 +.40%
Building permits were higher than expected coming in at 1.553M vs. 1.52M est., while housing starts were a disappointment coming in at 1.415M vs. 1.457M est. The market moved higher on signs that a Covid-19 virus relief bill might happen. More guessing than information thus far. Earnings season continued as IBM 117.37 -6.49% disappointed, with key analysts covering the company pointing to higher debt levels and poor cashflow. Traveler’s (TRV) 118.11 +5.61% beat estimates coming in at $3.12 vs. $2.907. General Motors (GM) 35.60 +6.75% unveiled its new all-electric Hummer. Kohl’s (KSS) 20.65 +6.61% announced a new private label Athleisure brand geared to both women and men.
Wednesday, October 21, 2020 – DIA 281.97 -.35%, QQQ 284.19 -.08%, 342.73 -.19%
No major data was released. Fed Beige Book was released showing economic growth was modest in most districts, employment was growing but at a slow pace. Equity markets were mixed throughout the day closing in the negative. Goldman Sachs (GS) 202.91 -2.46% said it will pay a $2.8 billion fine for its part in the 1MBD scandal. On the earnings front Snap Inc. (SNAP) 36.5 +28.3% took off like a rocket as it beat estimates handily. SNAP had a follow-on effect with Twitter (TWTR) 50.24 +8.39% participating in the online messaging positivity. On the downside Netflix (NFLX) 489.05 -6.92% missed $1.74 vs. $2.12 est. On the oil patch merger front, Concho Resources (CXO) 44.28 - 6.01% was down on litigation concerns.
Thursday, October 22, 2020 – DIA 283.65 +.60%, QQQ 284.18 Flat, SPY 344.61 +.55
Economic data was better than expected, Continuing Jobless Claims 8.373M vs. 9.5M expected, Initial Jobless Claims 787K vs. 860K expected, and Existing Home Sales 6.54M vs. 6.3M expected. The market has continued hopes for a COVID-19 relief agreement between the White House and the Congressional leadership. The big earnings blowout of the day was Align Technology Inc. (ALGN) 453.15 +34.97%. The CEO pointed to what was termed a Zoom (ZM) 520.54 +1.43% effect; People seeing imperfections in their smiles while on the calls and looking to improve. Also doing well on the day was Expedia (EXPD) 101.04 +9% the stock broke out of a well-defined bullish triangle pattern. Las Vegas Sands (LVS) 49.81 +8.42% had a larger than expected loss but investors were looking to the future after management stated that recovery was occurring in all markets.
Friday, October 23, 2020 – DIA 283.34 -.11%, QQQ 284.74 +.20%, SPY 345.78 +.34%
On the economic front, Markit Manufacturing PMI was off slightly 53.3 v. 53.4 expected, while Markit Services PMI was better coming in at 56 vs. 54.6 expected. The final presidential debate was milder and more civilized than the first and the markets were stable for now. Dexcom (DXCM) 411.00 +3.84% outperformed on the day ahead of earnings which are set for Oct. 27. Align Technology Inc. (ALGN) 469.56 +3.6% kept investors smiling as it added to the huge move up from the prior day's earnings bump. Intel (INTC) 48.20 -10.58% was the day’s earnings flop. Price targets were lowered by several analysts.
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