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PreMarket Prep Recap: A Trio Of Earnings Debacles, Facebook Pulls A Fast One On Roku

Joel Elconin

A trio of earnings announcements set the tone at the top of Wednesday's PreMarket Prep show. And none were good.

FedEx, Chewy, Adobe Reports 

After the close on Tuesday, FedEx Corporation (NYSE: FDX) disappointed the Street with a third-quarter miss along lower guidance for 2020 EPS and sales.

Co-host Dennis Dick lamented about having the issue in his long-term portfolio after watching substantial profits vanish on a few occasions, but said he's sticking with it. 

The next issue on the hit parade was Chewy Inc (NYSE: CHWY). The newly public equity for pet lovers will continue to be in investor doghouses after posting lower 2019 sales guidance. Investors sticking with the "pig" were alerted that a violation of its all-time-low ($29.03) would accelerate its decline.

Adobe Inc. (NASDAQ: ADBE) managed a third-quarter beat for EPS and sales, but was punished for lower fourth-quarter guidance. Investors looking to cover a short or nibble at a long were alerted to the pair of lows in the issue flanking $270 from June 5 and 6.

Streaming Competition 

During the show, Facebook, Inc. (NASDAQ: FB) submarined Roku Inc (NASDAQ: ROKU) with the introduction of its Portal TV service. Once again, a breach of the premarket low ($143.24) put the issue in an area of limited support.

Square Inc (NYSE: SQ)'s price action was examined after an upgrade from Craig-Hallum. Dennis Dick applauded the upgrade, as he recently increased his long in the issue.

Dan Forman of Olivetree Financial shared his views on issues in the technology sector,. setting-up potential trading scenarios in Twitter Inc (NYSE: TWTR), Shopify Inc (NYSE: SHOP), Roku and Square. 

Chaikin, Johnson Join Thursday's Program 

Be sure to tune in to Thursday's show for a discussion on the aftermath of Wednesday's Federal Reserve decision

If there is one show that you do not want to miss, it will be tomorrow's. Our hosts will get updates from Marc Chaikin (8:15 AM EST) from a fundamental perspective as well as what his Chaikin Money Flow Indicator is predicting.

Gordon Johnson, who recently started his own firm, GLJ Research, will end his slumber from the airwaves at 8:35 AM EST. Ahead of his initiations of coverage in the coming weeks, Gordon will provide commentary on several sectors. Including U.S. macro,China macro, steel, electric vehicles, solar and even cannabis.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.

Related Links: 

Craig-Hallum No Longer A Square Bear, Says Risks Priced Into Stock

FedEx Delivers Pain To Shareholders, But Some Analysts Are Shipping Support

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