D&D Note (7.28.2022) ~ Earnings Have Been Better-Than-Feared Leading to Stocks Rallying ~
The GDP print for Q2 came out this morning showing a second consecutive quarter of negative growth falling 0.9%.
Following the GDP print bond yields fell below 2.90%.
Stocks started the day down but then looked past the GDP print and rallied into the close.
Earnings this week for the most part have been better-than-feared allowing many stocks to rally even though missing on earnings.
The two consecutive quarters of negative GDP growth is not an official reading that we are in a recession but many call it a technical signal. End of the day the job market is so strong that GDP print really doesn’t matter.
Stock Specific News:
Apple beats on earnings after the bell and expect growth to accelerate, the stock rose 4% in after-hours.
Amazon surges 12% in after-hours after reporting an earnings beat.
Roku plunges 25% in after-hours after missing on top and bottom line earnings.
Intel sinks 11% in after-hours after missing on earnings.
Meta Platforms fell 6.6% after reporting disappointing earnings last night.
Comcast fell 8% despite reporting strong earnings but failed to add broadband subscribers.
Qualcomm fell 4% after issuing lower guidance last night.
Teladoc fell 20% after issuing weak outlook in earnings report.
Solar stocks surged after a deal was reached in the Senate on the climate bill.
Etsy rose 10% after beating on earnings.
Southwest fell 6% after issuing mixed guidance and saying capacity constraints will remain for rest of the year.
Spirit Airlines gained 5% after JetBlue agreed to buy Spirit for $3.8 billion.
Honeywell rose 3% after beating on earnings.
Harley-Davidson rose 7% after beating on earnings.
Market Knowledge Tip:
TV shows to watch for financial news.
- CNBC Halftime report with the investment community and Judge Scott Wapner
- CNBC OverTime that covers the hour post the closing bell.
- CNBC Fast Money for day traders and Options Action on Fridays
- CNBC Mad Money with Jim Cramer a great show for newbies to understand how and why the market moves
- CNBC The News with Sheppard Smith for an hour of old fashion news with no conjecture
- Bloomberg West with Emily Chang for everything happening in SF/Silicon Valley/and Tech
- Bloomberg Wall Street Week with David Westin on Friday, a reboot of Louis Ruckigers old show
- Bloomberg Real Yield on Fridays for everything related to bonds and corporate debt
Closing Markets (as of 1:15pm PST)
DOW up 1.03%
S&P 500 up 1.21% (4,072.43)
NASDAQ up 1.08%
VIX down -3.92% to 22.33
2 Year Note down -13.47bp to 2.86%
10 Year Note down -12.25bp to 2.66%
Oil down -0.103% to $97.16 a barrel.
Gold up 1.984% to $1753.20 an ounce.
Bitcoin up 5.14% to $23,847.61
Ethereum up 9.01% to $1,735.26
~ Dave James / Principal Trader and Market Strategist