D&D Note (7.28.2022) ~ Earnings Have Been Better-Than-Feared Leading to Stocks Rallying ~ #stockmarket

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.

Daily programs:

• 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

Weekly programs:

• 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