Wake Up Wall Street (SPY) (QQQ): Risk is back, memes on the attack, but is Netflix set to crack?
Here is what you need to know on Tuesday, October 19:
Equity markets turned on early bears yesterday and surged higher with riskier assets showing the biggest gains. The meme stock space was back. Crypto stocks surged on Bitcoin, and tech favourites were also strong as investors focused on strong earnings growth over yields and energy prices. Yields did at least retreat somewhat during the day, allowing the Nasdaq space to breathe, but energy prices continue to rise and portend bumps ahead for growth stocks. Netflix (NFLX) (see more) and Tesla (TSLA) shares continued their recent strong performances from both, with Netflix reporting after the close while Tesla is up tomorrow. We have been resolutely bullish on Tesla (see more) for some time but feel that both stocks may have run too far ahead of earnings.
The dollar has finally calmed down and stopped its recent surge and is now back at 1.1654 versus the euro. Oil remains strong at $83.30, and Bitcoin is has everyone's focus at $62,100. Gold is at $1,781, Vix dropped to 16 and the US 10-year yield is now 1.58%.
See forex today
European markets are higher: Eurostoxx +0.3%, FTSE +0.2% and Dax +0.1%.
US futures are higher: S&P +0.5%, Dow +0.5% and Nasdaq +0.4%.
Wall Street (SPY) (QQQ) stock news
Walmart (WMT): Goldman Sachs adds to its conviction buy list.
Proctor & Gamble (PG) beat earnings estimates, but shares fall as it says it will raise prices to counter supply costs.
GOOGL, AMZN: Reuters reports about 12 Senators are proposing a bill barring big tech companies from favouring their own products and services.
Johnson & Johnson (JNJ) is also down despite beating earnings estimates.
Bank of New York (BK) earnings beat on top and bottom lines.
Harmony Bio (HRMY) to enter S&P Small Cap 600.
GameStop (GME): SEC report says short selling was not the main cause of the huge spike in GME.
Haliburton (HAL) misses on revenue, in line on EPS, shares fall 1% premarket.
Phillip Morris (PM): EPS comes in ahead of estimates.
Ford (F) rolls first Mustang Mach E electric vehicle off Chinese assembly line.
Adagio Thera (ADGI) up 7% on positive data from covid trial.
Atea Pharma (AVIR) down sharply on trial not meeting its endpoint.
Alibaba (BABA) says it has made a custom chip that is to be used in its data centre servers, up 2% premarket.
DLocal (DLO) down 7% on secondary offering.
Manpower Group (MAN) down on Q4 earnings.
Pfizer (PFE), BioNTech (BNTX): FDA may allow vaccine mix and match this week, according to NYTimes.
Silvergate (SI) beats on EPS and revenue, stock down 4% premarket.
Earnings, Upgrades, downgrades and premarket
Source: Benzinga Pro
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
