Key issues to remember:
On the day CocaCola (KO) reports earnings, optimism continues to bubble and fizz on Wall Street. Hope for progress on a vaccine, new stimulus in Europe, and better than expected quarterly results from some major companies are all front and center in the early going Tuesday.
Today is arguably all about stimulus as the 27 European Union governments reached a pretty amazing breakthrough agreement. The amount is an eye-popping and unprecedented 750 billion euros ($857 billion). This kind of spending seems likely to give suffering economies there a jolt even as investors wait to see if the U.S. can come up with a new fiscal package.
It is difficult to say with certainty, however, that crude oil can be billed in this new stimulus package. U.S. crude oil costs rose to nearly $42 per barrel early Tuesday, the highest in just five months. The firmness of crude oil is equated with the optimism that economic strength can increase demand for transportation and travel. So keep an eye out for where this indicator is going.
Today, “counterfeit” income does not necessarily mean counterfeit income compared to a year ago. Investors, on the other hand, praise corporations that exceed reduced expectations. IBM (IBM) is an example, with consistent pre-marketing percentages of up to 5%, even though earnings consistent with a consistent percentage fell by 31% and revenue also declined. Still, the effects seem perfect compared to analysts’ estimates.
KO earnings were down along with revenue. Shares rose more than 2% in pre-market trading despite those soft numbers thanks in part to the company hinting that the worst might be over. Think about it: Major League Baseball is opening this week and no one is in the stands to buy KO’s main product.
Not all reports are rewarded for declining earnings. Take, for example, Lockheed Martin (LMT), whose shares rose by more than 3% in pre-market trading after the company reported EPS and profits for a year and exceeded analyst estimates. For a supplement, LMT sprinkled with a few more tips.
Benefit delivery continues after closing with Texas Instruments (TXN) and United Airlines (UAL). TXN gives us a first look at the moment in the chip industry. Shares in this sector have outperformed the market as a whole since the March low, helped through the “stay at home” trade.
The trip begins this afternoon with UAL, followed later this week by American (AAL) and Southwest (LUV). UAL could be number one on the runway, so to speak, influencing other travel stocks not only by its Q2 numbers, but by what its executives have to say about Q3 and Q4. Will the airlines have anything positive to share even as flights continue to operate at low capacity and thousands of flight crew employees take voluntary retirement in these difficult times? We’ll find out soon.
We’ve said in the afterlife that profits stimulate stocks and that’s what really matters. This year, maybe not so much. Everyone expects the company’s revenue to be horrific in the quarter. That’s what they say about the third trimester that can really have some influence. Unfortunately, the virus remains unpredictable and instances are expanding rapidly.
Hopes abound, however, for some progress on that front. The week got off to a good start partly from the FAANGs, but also because we saw three different news reports yesterday on progress with possible vaccines. These included one from Oxford University/AstraZeneca (AZN), one from a Chinese company, and one from Pfizer (PFE) in its collaboration with BionTech (BNTX).
Having intelligent knowledge has helped to load things up, however, as stated here in the past, investors don’t get carried away. These are all trials at an early stage. Rubber takes the lead when the largest and long-term verification knowledge begins to emerge later this year. The medicine is complete with studies that gave the impression of being correct at first and failed in the most real situation of Phase III clinical trials.
Let’s hope this isn’t the case this time, because much of the channel recovery is based on the confidence that one or more corporations will temporarily locate a cure or vaccine.
FAANGS party yesterday, and almost the entire market took a lead.
Amazon (AMZN) presented the game with a home race after getting a $3800 goal painted on the back through a Goldman Sachs (GS) analyst. AMZN’s stock had its biggest day in months, emerging only about 8% and fundamentally erasing memories of last week’s work.
Whether you think AMZN deserves the ambitious purpose or not, it’s obvious that other people can get excited about the company if you think AMZN’s online shopping and cloud computing, bread and butter explode during the pandemic.
Other FAAGS, such as Apple (AAPL) and Facebook (FB), which, along with AMZN, are reaching benefit reports, have followed AMZN higher. Microsoft (MSFT), known as FAANG’s older cousin, jumped 4% of its report on tomorrow’s results. Another popular inventory grouped with Tech and Profit Reports on Wednesday is Tesla (TSLA), which also had a sharp increase yesterday.
Where the FAANG goes, follow the Nasdaq (COMP). It was definitely the way things were yesterday, a kind of reversal of last week’s trend when Tech sat a little out. One day is not a trend, of course, so let’s see what Tech can do for a retirement today. The COMP released a new final record yesterday, which could possibly cause a profit-making.
This technology-driven breakthrough was despite everything felt in the S-P 500 Index (SPX) and the Dow Jones Industrial Average ($ DJI), any of which had a poor start on Monday morning before taking a light tailwind. However, some of the reopening actions such as airlines, hotels, cruise lines and restaurants have been delayed a bit. You can’t necessarily rule out that extra as the week goes on, maybe in the component because many operators and agencies report soon and some of the numbers will probably look ugly.
A little green: the SPX closed in positive territory and eclipsed the final peak of June 8, which had been the most productive closure since the start of the pandemic. Yesterday’s close was the highest for the SPX since February 20. If you remember, it was just before dark Monday that the SPX began its massive fall with a drop of more than a hundred problems in a single session.
All of this is quite long now, which is a bit ironic as the number of viruses continues to increase in some parts of the country. Volatility readings probably tell us that investors feel more positive than in a long time, with the Cboe Volatility Index (VIX) falling below 25 on Monday.
Despite all this, yields on 10-year Treasury spending appear to be emerging from the ditch, trading about 0.61% early Tuesday. Gold has risen this week and remains at nine-year highs above $1,800 an ounce. Small capitalization capitalizations have also given some ground. There’s a lot of caution if you know where to look.
Back to school like no other: talking about newspapers, open one of your selection and you’ll find articles on how back-to-school purchases can be affected through Koranavirus and possible “hybrid” or online school hours. Some reports seem negative, however, the National Retail Federation (NRF) has none of that. Last week, they issued a press release with record back-to-school sales, for what else? The virus.
Parents with young people from elementary school to high school say they plan to spend an average of $789.49 in line with the family, surpassing the previous record of $696.70 they reported spending last year, the NRF said. Spending is expected to total $33.9 billion, compared to $26.2 billion last year, and break the record for $30.3 billion set in 2012. If college is added, the combined spend is expected to succeed at $101.6 billion, surpassing $80.7 billion last year and surpassing $100 billion. billion for the first time.
Who gets advantages from school sales? If the NRF is right, this would be wonderful news for many primary stores like Target (TGT) and Walmart (WMT), and even for places where you don’t think for school trips, but they continue to do business in the end. – Minute pens, calculators and notebooks like Walgreen’s Boots Alliance (WBA) and CVS Health (CVS). Discounted retail outlets such as Dollar Tree (DLTR) and Dollar General (DG) can also be components of the mix, but reduction stores would attract far fewer buyers than a year ago, according to the NRF. Stores with a strong online presence, such as TGT and WMT, can only gain the greatest benefits, as 55% of K-12 school purchases are expected to be online, up from 49% a year ago, according to the press release.
Why is the big jump in sales expected in general? This may be partly due to a parent and beloved: computers. Online learning makes them top children. The NRF said its back-to-school survey showed that computer sales increased by 36% compared to the previous year. Then, other smart news, potentially, for Tech Info, especially hardware brands like Apple (AAPL), HP (HP), Dell (DELL) and Lenovo founded in Hong Kong.
TD Ameritrade comments® for educational purposes only. Member of SIPC.
I am the leading marketplaceplace strate for TD Ameritrade and I am my career as a marketplaceplace creator at chicago Board Options Exchange, trading mainly at the S-P wells of one hundred and S.P.500.
I am the leading marketplaceplace strata for TD Ameritrade and began my career as a marketplaceplace manufacturer on the Chicago Board Options Exchange, operating mainly at the S-P wells of one hundred and S.P.500. I also worked for ING Bank, Blue Capital and General Manager of Options Trade for Van Der Moolen, USA. In 2006, I joined the thinkorswim group, which it eventually acquired through TD Ameritrade. I am a 30-year-old trading veteran and a regular CNBC guest, as well as a member of the NYSE ARCA Board of Directors and a member of the CBOE Arbitration Committee. My licenses come with 3, 4, 7, 24 and 66.