D&D Note (10.20.2020) ~ Stimulus Stimulus Stimulus, Netflix And SNAP Earnings ~
The main focus today in markets was the Stimulus deadline of tonight. Stocks rose in intraday trading on comments from Pelosi that she is ‘optimistic’.
There was a late day reversal as the market got less optimistic on a stimulus deal, but indices did close in the green.
The White House according to Mark Meadows is now offering $1.88 trillion, but Senate GOP are skeptical over a possible agreement.
Google is being sued by the DOJ in an antitrust lawsuit but the suit really doesn’t much teeth and any outcome looks to actually be positive for Google hence why the stock gained on the day. The companies Search and Advertising business is what is in focus.
There is a considerable surge in early voting this year due to the pandemic with more than 34 million Americans already having voted either in person or by mail.
Netflix earnings: 3Q EPS $1.74 VS $1.47 Y/Y, EST $2.13. 3Q REV $6.44B, EST $6.38B. 3Q streaming paid net change +2.20M, EST +3.32M. So slight beat on REV but miss on EPS and paid streaming users. The Stock fell over -6% in after-hours. Fear is demand was just pulled forward due to pandemic and could be at peak streaming in the U.S. as nearly half of new subs came from Asia-Pacific.
SNAP earnings: 3Q ADJ EBITDA $56.4M, EST loss $44.9M. 3Q REV $678.7M, EST $559.2M. 3Q daily active users 249M, EST 244.6M. So daily active users and revenue beat estimates. The stock gained over 21% in after-hours.
D&D started a position in Verizon (VZ) today in our Holding Portfolio ahead of earnings tomorrow.
Tesla reports earnings tomorrow after the bell. What investors will be watching is will the company be profitable without selling EV credits.
DOW up 0.40%
S&P 500 up 0.47% (3443.12)
NASDAQ up 0.33%
VIX up 0.58% to 29.35
Oil up 1.67% to $41.51 a barrel.
Gold up 0.09% to $1913.50 an ounce.
A Texas woman in her 30’s died on flight from Arizona due to Coronavirus “on the jetway’. The woman died in July but officials just now learned of official cause of death.
Global Virus cases: 40.63 million+
Global Virus deaths: 1.12 million+
U.S. Virus cases: 8.26 million+
U.S. Virus deaths: 220,824+
~ Dave James / Principal Trader and Market Strategist