Snap, Facebook and Alphabet Earnings Boost the Tech Sector
Commenting on Snap, Facebook and Alphabet Earnings, and today’s trading, Gorilla Trades strategist Ken Berman said:
Get Our Activist Investing Case Study!
Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!
Q3 2020 hedge fund letters, conferences and more
Snap, Facebook and Alphabet Post Strong Earnings
The major indices are mixed and flat at midday following a quiet overnight session and a strong opening rally in stocks. White House chief of staff, Mark Meadows told the press that the two parties aim to reach “some kind of coronavirus stimulus deal” in the next 48-hours, and while a lot of analysts remain skeptical about a pre-election agreement, U.S. equities got a nice earl-day lift. While the large-cap benchmarks gave back their gains, domestic stocks remain in much better shape than their overseas peers, with especially European stocks still being under pressure due to the rapid spread of the virus.
The first two months of the third quarter were the best months for D1 Capital Partners’ public portfolio since inception, that’s according to a copy of the firm’s August update, which ValueWalk has been able to review. Q2 2020 hedge fund letters, conferences and more According to the update, D1’s public portfolio returned 20.1% gross Read More
Netflix (NFLX,) suffered a hit today after reporting weaker-than-expected earnings and subscriber growth yesterday afternoon, but the tech sector still got a boost from the strong advertisement numbers of Snap’s (SNAP, +34.4%), with Facebook (FB, +4.7%) and Google parent Alphabet (GOOG, 2.6%) both following the surging stock higher. This morning’s earnings were solid, with Verizon (VZ, -0.1%) Abbot Labs (ABT, -2.4%), and Nextra (NEE, -0.5%) all beating at their bottom lines, but the market’s reaction was mixed, at best, similarly to yesterday. In economic news, weekly crude oil inventories fell unexpectedly by 1 million barrel, but despite the bullish releases, the price of oil remains in the red after hitting a new 6-week high yesterday.
Dow: 28,284, – 24 or 0.1%
S&P 500: 3,444 + 1 or 0.03%
Nasdaq: 11,516, – 1 or 0.01%
Russell 2000: 1,612, – 5 or 0.3%
Market breadth has been in line with the performance of the major indices, with decliners outnumbering advancing issues by a less than 6-to-5 ratio on the NYSE at midday. 22 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 75 stocks hit new 52-week highs. The major indices have been hovering around their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to a mixed and choppy afternoon. While most “risk-on” sectors showed relative strength yesterday, cyclical issues have been facing strong international headwinds this morning, with the energy and industrial sectors being the weakest, and as tech stocks are also mixed, directionless trading could continue on Wall Street. Stay tuned!