With an FOMC meeting in the dock for Tuesday, investors took the opportunity to ramp stocks higher prior to the expected 25 basis point cut to the federal funds rate. Just prior to the opening bell, an apparently fake news story about a presidential tweet appeared on ZeroHedge.com, saying President Trump tweeted, "today will be a good day in the stock market," and, "the China deal is moving forward ahead of schedule."
We checked the president's twitter feed and could not find any such tweet. We also checked Bloomberg, which featured an article on President Trump's tweets that related to the stock market. No such tweet was shown in the article.
This clearly looks like a somebody spoofed the grammatically-challenged Zero Hedge website. It was most likely one of their "reliable" email contacts trying to look good. It's a shame that "the Hedge" has slumped to such low levels of journalism - if that's what you want to call it - because it is normally a pretty good source for economic news not found elsewhere.
Recently, Zero Hedge has taken to posting political and other non-economic articles, to its detriment. Many of the commentators who frequented Zero Hedge in its heyday (2008-2009), prior to it being purchased by ABC Media (British Columbia, not the US media giant). According to the one-liner in the website's footer - Copyright ©2009-2019 ZeroHedge.com/ABC Media, LTD - the company took it out of the original owner's hands in 2009, as the GFC was winding down.
For the S&P 500, Monday was a special occasion, setting a new all-time record high closing. Trump may not have pumped it with a tweet, but his "America First" policies have certainly contributed to the rise of all US indices.
If stocks were overvalued prior to Monday, they are even more overvalued now, and will likely be uber-overvalued after the FOMC announces another rate cut on Wednesday.
In the meantime, earnings season is in full swing. The big story was Google parent, Alphabet, third quarter earnings, reported after the close. Alphabet posted a per-share profit of $10.12 in the quarter, decidedly below the $13.06 a share from the same period last year. Analysts polled by Bloomberg were expecting a per-share profit of $12.35.
The sizable miss was due largely to losses in investments. Among investments that may have contributed to the loss, Alphabet was involved with Uber and Slack, two companies that recently IPO'd and have lost value.
Little of this will affect Tuesday's trade outside of Alphabet (GOOG). There's far too much enthusiasm for equities and anticipation of looser monetary policy from the Fed already backed into the mix.
At the Close, Monday, October 28, 2009:
Dow Jones Industrial Average: 27,090.72, +132.66 (+0.49%)
NASDAQ: 8,325.99, +82.87 (+1.01%)
S&P 500: 3,039.42, +16.87 (+0.56%)
NYSE Composite: 13,186.43, +40.19 (+0.31%)
Showing posts with label Alphabet. Show all posts
Showing posts with label Alphabet. Show all posts
Tuesday, October 29, 2019
Tuesday, July 24, 2018
Stocks Stagnate Prior To Google's Blowout Report
Stocks continued to loll around the unchanged mark to open the week's trading. The major indices have not moved much at all in the past week, though there could be a sudden lift after Alphabet, parent of Google (GOOG), reported second quarter earnings that smashed expectations.
The $5 billion fine leveled against Google the for antitrust violations by the European Union will barely dent the company's reported $100+ billion in cash and marketable securities.
While Google may stand alone atop the tech heap, it may need help lifting the rest of the market off the mark. Investors appear to be awaiting the report on second quarter GDP before making definitive decisions regarding stock purchases or sales.
Dow Jones Industrial Average July Scorecard:
At the Close, Monday, July 23, 2018:
Dow Jones Industrial Average: 25,044.29, -13.83 (-0.06%)
NASDAQ: 7,841.87, +21.67 (+0.28%)
S&P 500: 2,806.98, +5.15 (+0.18%)
NYSE Composite: 12,794.05, +4.14 (+0.03%)
The $5 billion fine leveled against Google the for antitrust violations by the European Union will barely dent the company's reported $100+ billion in cash and marketable securities.
While Google may stand alone atop the tech heap, it may need help lifting the rest of the market off the mark. Investors appear to be awaiting the report on second quarter GDP before making definitive decisions regarding stock purchases or sales.
Dow Jones Industrial Average July Scorecard:
| Date | Close | Gain/Loss | Cum. G/L |
| 7/2/18 | 24,307.18 | +35.77 | +35.77 |
| 7/3/18 | 24,174.82 | -132.36 | -96.59 |
| 7/5/18 | 24,345.44 | +181.92 | +85.33 |
| 7/6/18 | 24,456.48 | +99.74 | +185.07 |
| 7/9/18 | 24,776.59 | +320.11 | +505.18 |
| 7/10/18 | 24,919.66 | +143.07 | +648.25 |
| 7/11/18 | 24,700.45 | -219.21 | +429.04 |
| 7/12/18 | 24,924.89 | +224.44 | +653.48 |
| 7/13/18 | 25,019.41 | +94.52 | +748.00 |
| 7/16/18 | 25,064.36 | +44.95 | +792.95 |
| 7/17/18 | 25,119.89 | +55.53 | +848.48 |
| 7/18/18 | 25,199.29 | +79.40 | +927.88 |
| 7/19/18 | 25,064.50 | -134.79 | +793.09 |
| 7/20/18 | 25,058.12 | -6.38 | +786.71 |
| 7/23/18 | 25,044.29 | -13.83 | +772.88 |
At the Close, Monday, July 23, 2018:
Dow Jones Industrial Average: 25,044.29, -13.83 (-0.06%)
NASDAQ: 7,841.87, +21.67 (+0.28%)
S&P 500: 2,806.98, +5.15 (+0.18%)
NYSE Composite: 12,794.05, +4.14 (+0.03%)
Tuesday, April 24, 2018
Stocks Tumble As Investors Flee Overvalued Stocks
Today was yet another example of the kind of days which are typical in a bear market, and make no mistake, this is the early phase of what could become a raging bear which will strip stocks of 40-60% of their valuations. Stocks were higher in the early trading and slumped in the afternoon, with the Dow Industrials closing at its lowest level in three weeks.
With today's losses, the Dow has plunged into negative territory for the month, following back-to-back declines for February and March. Even earning reports are not enough to keep stocks elevated, especially after Alphabet (parent of Google, GOOG) posted what appeared to be strong numbers only to reveal increasing expenses, crushing profit margins.
Dow component 3M (MMM) led the decline after posting earnings per share of $2.50, which missed analyst estimates of $2.52, and were 16% higher than the $2.16 posted in the year-ago period. The stock was blasted, losing 14.77 points (-6.84%) to end the day at 201.11.
Caterpillar was close behind in the loss column, down -9.80 points (-6.36%).
Alphabet dropped a stunning -47.47 (-4.45%) to close out the session at 1,019.98.
Only six of 30 Dow stocks managed gains on the day. The NASDAQ and other major indices were also badly damaged.
The prevailing trend this earnings season has been that whatever a company posts, it's probably not good enough for anybody seeking to get out of a position, as risk aversion has suddenly become popular once again, especially with yields on the ten-year-note approaching three percent and precious metals (gold, silver) at bargain basement prices.
Dow Jones Industrial Average April Scorecard:
At the Close, Tuesday, April 24, 2018:
Dow Jones Industrial Average: 24,024.13, -424.56 (-1.74%)
NASDAQ: 7,007.35, -121.25 (-1.70%)
S&P 500: 2,634.56, -35.73 (-1.34%)
NYSE Composite: 12,513.91, -96.87 (-0.77%)
With today's losses, the Dow has plunged into negative territory for the month, following back-to-back declines for February and March. Even earning reports are not enough to keep stocks elevated, especially after Alphabet (parent of Google, GOOG) posted what appeared to be strong numbers only to reveal increasing expenses, crushing profit margins.
Dow component 3M (MMM) led the decline after posting earnings per share of $2.50, which missed analyst estimates of $2.52, and were 16% higher than the $2.16 posted in the year-ago period. The stock was blasted, losing 14.77 points (-6.84%) to end the day at 201.11.
Caterpillar was close behind in the loss column, down -9.80 points (-6.36%).
Alphabet dropped a stunning -47.47 (-4.45%) to close out the session at 1,019.98.
Only six of 30 Dow stocks managed gains on the day. The NASDAQ and other major indices were also badly damaged.
The prevailing trend this earnings season has been that whatever a company posts, it's probably not good enough for anybody seeking to get out of a position, as risk aversion has suddenly become popular once again, especially with yields on the ten-year-note approaching three percent and precious metals (gold, silver) at bargain basement prices.
Dow Jones Industrial Average April Scorecard:
| Date | Close | Gain/Loss | Cum. G/L |
| 4/2/18 | 23,644.19 | -458.92 | -458.92 |
| 4/3/18 | 24,033.36 | +389.17 | -69.75 |
| 4/4/18 | 24,264.30 | +230.94 | +161.19 |
| 4/5/18 | 24,505.22 | +240.92 | +402.11 |
| 4/6/18 | 23,932.76 | -572.46 | -170.35 |
| 4/9/18 | 23,979.10 | +46.34 | -134.01 |
| 4/10/18 | 24,407.86 | +428.76 | +294.66 |
| 4/11/18 | 24,189.45 | -218.55 | +76.11 |
| 4/12/18 | 24,483.05 | +293.60 | +369.71 |
| 4/13/18 | 24,360.14 | -122.91 | +247.80 |
| 4/16/18 | 24,573.04 | +212.90 | +460.70 |
| 4/17/18 | 24,786.63 | +213.59 | +674.29 |
| 4/18/18 | 24,748.07 | -38.56 | +635.73 |
| 4/19/18 | 24,664.89 | -83.18 | +552.55 |
| 4/20/18 | 24,462.94 | -201.95 | +350.60 |
| 4/23/18 | 24,448.69 | -14.25 | +336.35 |
| 4/24/18 | 24,024.13 | -424.56 | -88.21 |
At the Close, Tuesday, April 24, 2018:
Dow Jones Industrial Average: 24,024.13, -424.56 (-1.74%)
NASDAQ: 7,007.35, -121.25 (-1.70%)
S&P 500: 2,634.56, -35.73 (-1.34%)
NYSE Composite: 12,513.91, -96.87 (-0.77%)
Thursday, January 14, 2016
Rally Falls Short in Final Hour; NASDAQ Still Down for the Week; Investors Not Biting on FANGs
Of the hardest hit stocks, many of them, including some of the tech all-stars, such as Facebook (FB), Amazon.com (AMZN), Netflix (NFLX), and Alphabet (Google, GOOG), otherwise known as the FANGs have been mercilessly sold off since December, and, likely, for good reason.
Overall, their price-earnings ratios are stratospheric, they don't actually make anything, Amazon, in particular, rarely turns a profit, and they don't offer dividends, only appreciation in stock price as their sole saving grace.
Take away the increasing stock price and what have you got? Losses as far as the eye can see, and traders have recently shied and run away from these four horsemen of the internet.
The big winner today was Facebook, which gained nearly three percent, but is still down close to 10% overall. The others didn't fare quite so well. Amazon gained close to 2%, though it is still down over 12% since December 30. Netflix added back just 0.5%, and is down close to 20% since highs made the first week of December. Google, the best of the bunch, with regular profits and solid earnings quarter after quarter, gained 2% and is only down about 8% since after Christmas.
Fourth quarter earnings are coming due for the bunch of them, and market participants will be eager to note any difficulties experienced during the holiday period, though Amazon could surprise, as more and more people flocked to the web for holiday shopping in the past year.
Otherwise, it was a hopeful day on Wall Street, though the massive rally sparked by St. Louis Fed governor James Bullard's comments that the low price of oil was an impediment to the Fed's 2% inflation target, and thus, the Fed may "rethink" its interest rate hike policy for 2016.
While lower oil - and consequently gas - prices are good for everyone except possibly the oil companies and the Fed, Bullard's jawboning served to send the markets soaring on the day, wiping out much of Wednesday's steep losses.
However, the rally fell short in the final hour, as traders exhausted their buying optimism.
Not much should be made from today's trade. Stocks are still moribund and stuck well below all-time highs. The hope of making back the losses of the past two weeks is slim, and anyone thinking the indices will retrace all the way back to all-time highs made in May 2015 is whistling past the grave.
Unless earnings for the fourth quarter are utterly surprising to the upside, expect the pattern of wild swings to continue. Global markets are still in trouble, as is the worldwide currency crisis, reaching from Japan to China, Australia, Europe and even to Canada, where the looney has lost significantly to the dollar due to the downturn in the price of oil.
It's indeed unfortunate that so many keys of economics are locked to the price of oil, because, by most measures, the price is going to stay low or lower for an extended period of time, pushing all other prices down with it. At the apex of the deflationary spiral, oil, which powers more than just machines, pushes down prices for virtually all products, from manufactured to agricultural.
The rally today erased the loss for the week on the Dow, left the S&P virtually unchanged, and the NASDAQ with a 26-point loss. Friday will determine whether the week ends with a positive or negative tone.
The day's action:
S&P 500: 1,921.84, +31.56 (1.67%)
Dow: 16,379.05, +227.64 (1.41%)
NASDAQ: 4,615.00, +88.94 (1.97%)
Crude Oil 31.09 +2.00% Gold 1,077.20 -0.91% EUR/USD 1.0867 -0.14% 10-Yr Bond 2.0980 +1.55% Corn 358.25 +0.07% Copper 1.98 +1.12% Silver 13.85 -2.20% Natural Gas 2.14 -5.69% Russell 2000 1,025.67 +1.53% VIX 23.95 -5.04% BATS 1000 20,474.30 +1.64% GBP/USD 1.4412 -0.07% USD/JPY 118.0400 +0.34%
Overall, their price-earnings ratios are stratospheric, they don't actually make anything, Amazon, in particular, rarely turns a profit, and they don't offer dividends, only appreciation in stock price as their sole saving grace.
Take away the increasing stock price and what have you got? Losses as far as the eye can see, and traders have recently shied and run away from these four horsemen of the internet.
The big winner today was Facebook, which gained nearly three percent, but is still down close to 10% overall. The others didn't fare quite so well. Amazon gained close to 2%, though it is still down over 12% since December 30. Netflix added back just 0.5%, and is down close to 20% since highs made the first week of December. Google, the best of the bunch, with regular profits and solid earnings quarter after quarter, gained 2% and is only down about 8% since after Christmas.
Fourth quarter earnings are coming due for the bunch of them, and market participants will be eager to note any difficulties experienced during the holiday period, though Amazon could surprise, as more and more people flocked to the web for holiday shopping in the past year.
Otherwise, it was a hopeful day on Wall Street, though the massive rally sparked by St. Louis Fed governor James Bullard's comments that the low price of oil was an impediment to the Fed's 2% inflation target, and thus, the Fed may "rethink" its interest rate hike policy for 2016.
While lower oil - and consequently gas - prices are good for everyone except possibly the oil companies and the Fed, Bullard's jawboning served to send the markets soaring on the day, wiping out much of Wednesday's steep losses.
However, the rally fell short in the final hour, as traders exhausted their buying optimism.
Not much should be made from today's trade. Stocks are still moribund and stuck well below all-time highs. The hope of making back the losses of the past two weeks is slim, and anyone thinking the indices will retrace all the way back to all-time highs made in May 2015 is whistling past the grave.
Unless earnings for the fourth quarter are utterly surprising to the upside, expect the pattern of wild swings to continue. Global markets are still in trouble, as is the worldwide currency crisis, reaching from Japan to China, Australia, Europe and even to Canada, where the looney has lost significantly to the dollar due to the downturn in the price of oil.
It's indeed unfortunate that so many keys of economics are locked to the price of oil, because, by most measures, the price is going to stay low or lower for an extended period of time, pushing all other prices down with it. At the apex of the deflationary spiral, oil, which powers more than just machines, pushes down prices for virtually all products, from manufactured to agricultural.
The rally today erased the loss for the week on the Dow, left the S&P virtually unchanged, and the NASDAQ with a 26-point loss. Friday will determine whether the week ends with a positive or negative tone.
The day's action:
S&P 500: 1,921.84, +31.56 (1.67%)
Dow: 16,379.05, +227.64 (1.41%)
NASDAQ: 4,615.00, +88.94 (1.97%)
Crude Oil 31.09 +2.00% Gold 1,077.20 -0.91% EUR/USD 1.0867 -0.14% 10-Yr Bond 2.0980 +1.55% Corn 358.25 +0.07% Copper 1.98 +1.12% Silver 13.85 -2.20% Natural Gas 2.14 -5.69% Russell 2000 1,025.67 +1.53% VIX 23.95 -5.04% BATS 1000 20,474.30 +1.64% GBP/USD 1.4412 -0.07% USD/JPY 118.0400 +0.34%
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