After the close on Tuesday, Alphabet (parent of Google, GOOG) released first quarter earnings which blew away Wall Street with stunning numbers, especially the EPS of $26.29, on expectations for $15.45. Revenue was $55.3 billion, also ahead of forecasts.
Google advertising revenue of $44.7 billion, rose 32.3% in the quarter, comprising 80.8% of companywide revenue.
Off numbers that were truly spectacular, the company is being rewarded by investors in the pre-market, with shares up by more than five percent (2,423.35 +116.23).
Meanwhile, with stocks set for an open in just over a half hour's time, futures are collapsing, with Dow futures off nearly 100 points. The S&P and NASDAQ futures are also trending lower.
There seems to be a disconnect between stocks and investors developing. Even though the main indices are at or near all-time highs, advancing further has been an issue over the past week to 1 days. As an illustration, the S&P made a new all-time closing high on April 16, finishing at 4,185.47. After failing to follow through for a week, it finally made its way to another record close on Monday, ending at 4,187.62, though the gain was a mere seven points. Tuesday's small dip kept it from setting another record.
The Dow has been trading in a very similar way, closing at record levels on April 5th, 8th, 15th and 16th, but the 30 industrials can't seem to find a way higher. Tuesday's session was the seventh straight in which it failed to make a new high at the close of the day.
Another issue facing markets - aside from stocks - is in the precious metals space. While god and silver have had some success over the past few sessions, they are still trading in the futures market at levels well below their August 2020 highs and were crushed again overnight. As of this writing, silver, which closed at $26.25 in New York, is trending at 25.82, down .43 cents.
Gold is down $11.10 from Tuesday's NewYork close, at 1,764.70. Resistance is substantial for $1800 gold and $26 silver.
Then there's Bitcoin and the universe of cryptocurrencies. Top performing Etherium has been the best crypto this year, outpacing even the grandaddy, Bitcoin. Just peaking above $2,700, ETH is up 58% in just the past month. It has taken most of the action away from Bitcoin and some of the other high-flying altcoins.
Bitcoin, however, has struggled. Since peaking at $64,899 on April 14, it fell to a low of $47,044 this past Sunday, April 25. It has recovered quite well over the past two days to a current level just above $55,000, but still far from the all-time high.
There just seems to be an uneasiness in all markets, as though everything is not as it appears and that something big is about to occur. There are many distortions, dislocations, and distractions in the world, from supply chain issues to congress and the presidency. Joe Biden will make a speech tonight at 9:00 pm ET to a joint session of congress (an unusual event) to unveil yet another massive spending program.
Well before that the FOMC of the Federal Reserve will issue a policy statement at 2:00 pm ET, followed by a press conference with Chairman Jerome Powell.
More earnings hitting the street as well today, so there are plenty of events to affect prices and trading.
Money Daily HQ is in the process of getting a new roof today. It's difficult to concentrate on anything as it sounds like a thunderstorm overhead, so this note is going to be cut short...
AT THE CLOSE, TUESDAY, APRIL 27, 2021:
Dow: 33,984.93, +3.36 (+0.01%)
NASDAQ: 14,090.22, -48.56 (-0.34%)
S&P 500: 4,186.72, -0.90 (-0.02%)
NYSE: 16,273.31, +32.10 (+0.20%)
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