D&D Note (10.12.2020) ~ Stimulus Hopes + Apple 5G Event + Optimistic Earnings Season All Lead To Rally Today Led By Tech ~
The market General, Apple, lifts virtually the entire market today ahead of their 5G iPhone event Tuesday. AAPL was up 6.48% in cash trading today.
Investors remain hopeful of fiscal stimulus after the President reversed his initial stance last week calling off talks, then calling for some stimulus, then saying he wants more than what both Dems and GOP are proposing, then saying 1.8 trillion. Neither side of the aisle can still agree with GOP wanting less than the White House and Democrats wanting more than the White House.
Earnings Season begins tomorrow and hopes are companies will report strong earnings, especially tech companies, to allow for multiple expansion in P/E ratios.
As always the Banks kickoff earnings season and all eyes will be on the large bellwether bank JPMorgan tomorrow.
Amazon Prime Day starts at midnight PST on Tuesday Oct 13 and runs through Wednesday Oct 14. The companies stock was up 4.73% today.
Cannabis stocks continue to rally after Kamala Harris said the Biden administration would decriminalize the herb. Canopy Growth gained 8.52% today.
Twitter upgraded to Buy rating at Deutsche Bank on ‘pickup’ in user growth with a price target of $56.
Snowflake initiated with a Buy rating at D.A. Davidson on ‘differentiated platform’ with a price target of $300. Goldman Sachs also initiated Snowflake as a Buy.
Travelers downgraded to Underweight rating at JPMorgan.
DraftKings initiated as Outperform rating at Credit Suisse.
Apple price target raised to $132 at RBC.
Alphabet (Google) price target raised to $2,020 at Deutsche Bank.
United Airlines downgraded to Neutral position at Barclays.
Disney announced after the bell they are doing a major reorganization to have entertainment video streaming as its ‘primary focus.’ The stock is up in after hours trading by 4.55%.
Due to D&D’s overweight positions in Apple, Amazon, and Canopy Growth our trading portfolio beat the major indices gaining 3.60% today.
The U.S. major indices closed near the highs of the day.
DOW up 0.88%
S&P 500 up 1.64% (3534.22)
NASDAQ up 2.56%
VIX up 0.28% to 25.07
Oil down -3.18% to $39.31 a barrel.
Gold up 0.08% to $1927.90 an ounce.
The United States has the highest death rate from Coronavirus in the developed world.
U.S. airport screening hits 7-month high yet still only a third of last year’s travel.
New research shows that the Covid-19 virus can survive on surfaces for 28 days.
Global Virus cases: 37.68 million+
Global Virus deaths: 1.07 million+
U.S. Virus cases: 7.79 million+
U.S. Virus deaths: 214,985+
~ Dave James / Principal Trader and Market Strategist