Pinterest Blowout Earnings Buoyed The Tech Sector
Commenting on the third quarter earnings of Pinterest and today’s trading, Gorilla Trades strategist Ken Berman said:
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Q3 2020 hedge fund letters, conferences and more
The Blowout Quarterly Earnings Of Pinterest
The major indices are all trading higher at midday, erasing some of yesterday’s steep losses following a weak overnight bounce in risk assets. The blowout quarterly earnings of Pinterest (PINS, +33.9%) buoyed the tech sector, and with Apple (AAPL, +2.6%), Amazon (AMZN, +0.8%) , Google parent Alphabet (GOOG, +2.2%), and Facebook (FB, +5.1%) will all report today after the bell, bulls are hoping for more bullish surprises. The European Central Bank (ECB) left its monetary policies unchanged, but pointed out the “clear downside risks”, but the “verbal intervention” wasn’t enough to trigger a rally in the battered European markets.
As usual, the Robin Hood Investors Conference has brought several new investment ideas from some of the top minds in the wealth management business. Investors heard from Sachem Head’s Barnes Hauptfuhrer, One Tusk Investment Partners’ Vivian Lau, Lone Pine’s Mala Gaonkar, Lakewood Capital’s Anthony Bozza, CAS Investment Partners’ Clifford Sosin, Teca Capital’s Fernando Vigil and Read More
In economic news, the first reading of the third-quarter GDP print came in at a record-breaking annualized 33.1%, well above the consensus estimate of 32.0%. The indicator confirmed the positive economic surprises of the past weeks and months, and the much higher-than-expected GDP Price Index also points to strong demand. New jobless claims were below-forecast as well, coming in at 751,000, while the number of continuing claims dropped by another 700,000, below 8 million, as the healing of the job market continues.
Dow: 26,593, + 73 or 0.3%
S&P 500: 3,303 + 32 or 1.0%
Nasdaq: 11,167, + 162 or 1.5%
Russell 2000: 1,552, + 9 or 0.6%
Market breadth has been relatively weak this morning, with advancing issues only outnumbering decliners by a 5-to-4 ratio on the NYSE at midday. 104 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 20 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. This week’s risk-off trends partially reversed this morning, with the key defensive sectors showing relative weakness and cyclical issues and tech stocks leading the morning rally, but bears are still clearly in the driving seat on Wall Street. Stay tuned!