|Day's Range||26,534.38 - 26,707.26|
|52 Week Range||18,213.65 - 29,568.57|
Stock futures clung to the flat line Monday evening after a tech-led rally during the regular session, with investor attention still centered on fresh signs of corporate and economic stress from the coronavirus pandemic.
Asian shares were on track to open higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities and the U.S. dollar overnight. Hong Kong futures <HSIc1> were up 0.65% and Nikkei futures <NKc1> were above the Nikkei 225 index's <.N225> previous close, pointing to an opening gain of about 0.88%. Global equities, the dollar and oil futures kicked off the week with gains as manufacturing data from the United States, Europe and China indicated a factory recovery is holding up despite rising cases of COVID-19.
Disney stock is trying to rebound after coronavirus closures took a toll. Here's what fundamental and technical analysis says about buying Disney now.
The Dow Jones Industrial Average closed out July with another modest gain, as the stock market continues to rebound. Top Dow Jones stocks to watch in August are Pfizer, Nike, Visa and Walmart. There are clear winners — and losers — through the first seven months of 2020.
Apple could expand its mobile payments business, and Microsoft is in talks to acquire a wildly popular social media app.
Wall Street closed higher on Friday buoyed by strong earnings results of four tech behemoths defying coronavirus-induced economic devastation.
Last week was the busiest earnings stretch of the season, and now the fun continues with another packed schedule featuring more than 130 companies. The question is whether Big Tech can almost single-handedly keep the train running. Early Monday, the answer seemed affirmative as Apple Inc (NASDAQ: AAPL) continued to propel Tech ahead of the opening bell. AAPL is up more than 1% at a new all-time high in pre-market trading. Other Tech shares and the broader market might be getting a tailwind.Some influential reports expected this week include Moderna Inc (NASDAQ: MRNA), Wynn Resorts, Limited (NASDAQ: WYNN), Clorox Co (NYSE: CLX), TAKE-TWO INTERACTIVE SOFTWARE, IN (NASDAQ: TTWO), Walt Disney Co (NYSE: DIS), CVS Health Corp (NYSE: CVS), Beyond Meat Inc (NASDAQ: BYND), Roku Inc (NASDAQ: ROKU), Uber Technologies Inc (NYSE: UBER), and Square Inc (NYSE: SQ). Though the earnings storm is a bit lighter than a week ago, data continue to reign. Maybe none more than this Friday's July payrolls report, especially after a troubling rise in initial jobless claims the last two weeks. Some had hoped jobless claims could start easing in July, but we're seeing the opposite.Way before the monumental jobs report, we get a fresh reading on the Purchasing Managers' Index (PMI) from the Institute for Supply Management (ISM) later this morning. It came in at a pretty solid 52.6% in June, with above-50 indicating expansion. New orders and production were both very strong last time out, so we'll see if that continued. Eyes also turn to Washington today, where Congress and the White House ended the weekend still deadlocked on a new stimulus (see more below). The longer it takes for something to get done, the more danger this could pose to the market. Consider taking the crude watch this week, too. It slipped below $40 intraday late last week and barely held $40 an hour before Monday's open. Any signs of crude falling below $40 and staying there a while could be a good barometer for possible economic softness ahead. Does Friday's Late Rally Pose Profit-Taking Danger Today? By midday Friday, the long rally appeared to be losing steam in a post-FAANG, end-of-the-month profit-taking spree. A few hours later, as the old week ended, that theory kind of went up in smoke. The market rebounded very nicely, helped by AAPL's early gains accelerating. Shares of AAPL ended up rising more than 10% as pundits oohed and ahhed over its Q2 performance.One theory now is that Friday's late AAPL-led upswing in the market represented "window dressing" as July closed. That's a term to describe the ancient practice of fund managers snapping up shares of "winning" stocks as a month ends so clients will see the flashy names included in their month-end reports. If that actually happened late Friday, it could mean profit-taking got postponed until today, so consider looking out. Friday's early action--which saw major indices roll back despite blowout quarters from the four "FAANGs" that reported late Thursday--suggests that the FAANGs by themselves might not be enough to power everything else higher. The FAANGs and their cousins--the semiconductors and Microsoft Corporation (NASDAQ: MSFT)--compose more than 25% of the SPX by market cap, and are up sharply this year. The rest of the SPX? Not so much (see more below). When the market fails to rally hard despite strong earnings data, that can signal exhaustion. Same with the SPX's failure to show much enthusiasm about testing the old highs from February above 3300. It's up about 1% year-to-date, which is pretty amazing when you consider all that's happened. Still, the SPX range has tightened a lot lately (see chart). Another possible caution flag was the SPX's failure Friday to close above the July intraday high near 3280. That said, it's hard to stay too negative when you consider July was the fourth straight month of SPX gains, and earnings so far this quarter have generally been better than expected despite mostly being way worse than a year ago. The SPX rose a solid 5% in July, while the Nasdaq (COMP) climbed 6%. Tech continues to do well, but Financials keep struggling because they're so tied to rates. We've been so driven by Tech in this recovery that if you take the top-five mega-caps out of the equation, it's hard to see where we'd turn next. On the other hand, it was good to see UPS (UPS) perform nicely on earnings and in the market last week. When package delivery companies do well, that arguably says good things about the health of the consumer.Earnings Wrap: When Negative-35% Sounds Good Looking more closely at earnings through the end of last week, 63% of S&P 500 companies have now reported results, and 84% of those firms reported earnings per share above the five-year average, according to research firm FactSet. Info Tech and Health Care are some of the best earnings performers so far, with Industrials and Energy bringing up the rear. The average earnings beat so far is more than 21% above estimates. Info Tech is the leading sector for positive earnings surprises, with 86% of Tech firms reporting better-than-expected results. It feels like analysts really under-estimated the ability of those companies to deal with pandemic-related economic stress. Still, FactSet sees average Q2 SPX earnings down 35.7% from a year ago. That's not great by any stretch of the imagination but beats the firm's week-ago estimate of a negative 42.4% earnings quarter.Sales are also coming in above expectations, with 69% of companies beating Wall Street so far on that metric. This could mean analysts underestimated the support from monetary and fiscal stimulus in Q2, which raises worries about whether Q3 can get the same kind of consumer input when the next round of fiscal funding remains in doubt (see more below).CHART OF THE DAY: HOLDING PATTERN. For the last few weeks, futures on the S&P 500 Index (/ES) have stayed in a pretty tight range--roughly between 3190 and 3285--as market headwinds and a stalled stimulus package have more or less offset positive news on the earnings front. But this week starts with /ES bumping against the top of that range. Data source: CME Group. Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results. State of the Stimulus: The weekend came and went with no deal on any extension of coronavirus-related $600 unemployment checks, and the debate is expected to continue this week. The expiration of those checks Friday coincided with a Wall Street Journal report that household spending appeared to pull back in recent weeks after rising 5.6% in June. As the WSJ noted, "Household spending reflects two-thirds of economic demand in the U.S. Americans' spending will help determine the economy's path in the coming weeks and months. A sharp drop in spending--tied to business closures and fears of the virus--was the biggest reason the U.S. economy contracted at a record rate in Q2." If Congress finds a way to get the checks flowing again, would it be soon enough to prevent consumers from pulling back more? It depends. States could quickly resume sending out the extra $600, the WSJ said, citing state labor officials. But the officials indicated it may take days or weeks to even lower the flat payment to $200 a week (as some in Congress want), and possibly months to calculate benefits as a percentage of a worker's previous income. So if Congress approves some sort of aid, that isn't necessarily going to provide immediate relief to consumers. We'll have to watch closely this week to see where it goes. If things get completely called off, the market might react poorly. Apple Goes Four-For-One: Apple's surprise four-for-one stock split announced last week generally got a positive read from analysts, some of whom said it could potentially bring more investors into the stock and increase liquidity in the shares, which would likely mean less volatility. However, the split probably doesn't affect the general outlook for AAPL or the fundamental picture. You just don't see these kinds of stock splits as often lately, although AAPL did a seven-for-one split a few years ago. Stock splitting used to be relatively common, but now it feels like companies are a lot more comfortable with four-figure stock prices. Some analysts wondered whether AAPL decided on this because it was by far the highest-priced stock on the Dow Jones Industrial Average ($DJI), a price-weighted index. No one knows for sure if that's why AAPL made the move. It could be simply to draw more investors, some of whom might have started to struggle coming up with $375 for a single share. Whatever the reason, one published report noted that the pace of DJIA gains may slow slightly when AAPL goes from being first in price to 16th among $DJI stocks. On Friday AAPL's huge price probably kept the $DJI a lot, but the same thing won't necessarily happen after the end of this month when it splits.Rally Caps and Market Caps: According to Morningstar data, as of Friday's close, the total market cap for the S&P 500 (SPX) is $25.6 trillion. A quick check of the market caps of the five big-cap Tech/Comms giants MSFT, AAPL, Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOGL), and Facebook, Inc. (NASDAQ: FB)--which you can access for each stock in the thinkorswim® platform under the Analyze tab > Fundamentals--is $6.7 trillion, or 26%. So these five stocks represent 26% of the SPX market cap. And remember: When counted as a whole, these five are up more than 30% year to date--with AAPL up over 40% and AMZN up 65% as of Friday's rally--but the SPX is roughly flat on the year.So if 26% of the market cap is up 30%, but the total index is flat, what does that say about the 495-or-so other stocks that comprise the index? A little back-of-the-napkin algebra says they'd have to be down about 10%.The big question is when the economy returns to normal growth, could we see investors rotate out of "big tech"and into cyclical stocks that aren't rallying in tandem with the SPX? It's too early to tell since we aren't seeing signs of any rolling over, but it's something that creates a yellow flag.TD Ameritrade® commentary for educational purposes only. Member SIPC.Photo by Thomas Kelley on UnsplashSee more from Benzinga * Why Tyme Technologies's Stock Is Trading Higher Today * Why Eli Lilly's Stock Is Trading Higher Today * 'Hollywood Ending': Dwayne 'The Rock' Johnson Will Be New XFL Co-Owner In M Deal(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Nasdaq continues to lead and grab the headlines. However, recent market action is not all lollipops and roses. While the Nasdaq Composite Index and Nasdaq 100 closed above their near-term resistance levels, their progress was marred, in our opinion, by a general deterioration in overall market breadth as participating stocks became more selective.
The expiration of emergency unemployment benefits, worth around $18 billion, has markets looking to Congress for follow-up stimulus package, but weekend talks passed without a deal and investors are growing concerned.
Earnings season continues this week with another packed calendar for quarterly results. Meanwhile, the July jobs report is set for release Friday.
Tech giant Apple (NASDAQ: AAPL) has broken all the rules of stock market investing. Its market capitalization of nearly $1.8 trillion seems too large for further gains, yet Apple keeps breaking the law of large numbers to push ever higher. Now, Apple has once again flown in the face of convention, this time with its stock.
It’s a busy week ahead for the markets. Economic data, COVID-19 updates, and political wrangling on Capitol Hill are just a few of the things to consider.
Microsoft's (MSFT) interest in TikTok sends the blue chip's shares soaring Monday; EV makers such as Nio (NIO) and Workhorse Group (WKHS) jump, too.
Simply stated, the 50% level at 25938 has to hold as support, and the buying has to be strong enough to overcome the minor Fibonacci level at 26608.
Blowout earnings from Apple (AAPL), Amazon.com (AMZN) and Facebook (FB) led another charge by the Nasdaq on Friday.
Stocks ended higher on Friday, with the Nasdaq outperforming after a slew of better than expected corporate earnings results from major tech firms. Facebook and Apple posted record closing highs.
iPhone maker Apple (AAPL), currently the most important stock in the blue-chip average, will see its influence decline substantially after a 4-for-1 split.
Apple beat analyst estimates by a mile with its fiscal third-quarter results, and Caterpillar is suffering a steep drop in demand for its products.
Steep quarterly losses at energy giants Exxon Mobil and Chevron weighed on indexes but are offset by impressive earnings from Apple and Amazon.com.
Ladies and gentlemen, the FAANGs have left the building.It's the last day of the month and the biggest earnings week of the quarter is wrapping up. Yesterday's reports from the FAANGs mean all five are out of the way, and "blowout" is the word many analysts are using to describe Thursday's results. Let's face it: The message they sent was a very solid one for the market. Let's see if the rest of Wall Street can build on their momentum. We'll discuss the FAANGs in a minute, but first some new business. Stocks had a slightly higher tone in the pre-opening hours, with Nasdaq looking strongest thanks, of course, to the FAANGs. Apple Inc (NASDAQ: AAPL) rose more than 7% ahead of the bell, easily climbing above that $400 level it was banging its head against recently. Amazon.com Inc (NASDAQ: AMZN) climbed 6%, and so did Facebook Inc (NASDAQ: FB). Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) was the laggard, down slightly. Overall, stocks faded a bit into the open. All the other indicators seem stuck in their usual modes, with gold up again and on the verge of testing $2,000 an ounce and 10-year Treasury yields down again and below 0.54%--the lowest level since March and just about the lowest ever. Crude keeps bouncing off of $40 a barrel.There are some fresh earnings this morning, including a better than expected quarter from Caterpillar Inc (NYSE: CAT), whose shares rose 1% in pre-market trading. Merck & Co, Inc. (NYSE: MRK) is also up nicely in the pre-market hours after surpassing expectations and raising guidance.It's a different story in the oil patch, though, as both Chevron Corporation (NYSE: CVX) and ExxonMobil Corporation (NYSE: XOM) shares fell in the pre-market after reporting wider than expected losses. It was basically a foregone conclusion heading into earnings season that oil services were going to take it on the chin, but this morning's punch still left quite a mark. An inflation reading today showed Personal Consumption Expenditure (PCE) prices slightly up in June, but not more than expected. The headline number rose 0.4% and core rose 0.2%. The Fed has said inflation isn't a major concern right now. There's one more data point before the weekend, as the University of Michigan sentiment report is due soon after the open. Consumer confidence earlier this week was below analysts' expectations, and hopes aren't too high for this sentiment data, either. Remember that today is the deadline for Congress to act on some sort of stimulus plan before the old one runs out, and The Wall Street Journal headline today says the recent virus surge appears to have slowed consumer spending in recent weeks. Not good. FAANGs Go Four-for-Four After an earnings barrage like last night, where do we even start?Well, maybe by saying things look awfully healthy in the FAANG universe despite the horrendous Q2 the U.S. economy just suffered. AAPL, GOOGL, FB, and AMZN all probably got an assist to some extent from the stay-at home economy, but that's not the only reason they're advancing. Credit also goes to strong management teams who just proved their mettle in a crisis. The FAANG earnings are still the main focus as we start the new day, with three of the four that reported yesterday up ahead of the bell. Going in, there was fear that they'd suffer the "Microsoft Corporation (NASDAQ: MSFT)" syndrome--rising ahead of earnings on big expectations and then getting pushed down after the results--but they still delivered. You already know the main numbers--all four companies beat analysts' expectations--so there's no reason to repeat them all here. A few takeaways that really stuck out, however, were AAPL's much better than expected iPhone sales in the June quarter, the same company's success growing its business in Greater China, AMZN's eye-popping bottom line beat, and a strong cloud performance from GOOGL.It's also interesting to see AAPL announce a four-four-one stock split, something that doesn't happen too often these days. Maybe it's the start of a trend. One published report did say that AAPL, once split, will go from first in the Dow Jones Industrial Average to 16th in price, which may slow the pace of the $DJI's gains slightly. So that could be one side effect. There are some holes you could poke. AAPL didn't share guidance for the current quarter, and GOOGL's revenue fell for the first time in history. Also, AMZN's closely watched Amazon Web Services (AWS) cloud platform didn't live up to analysts' quarterly growth expectations. That's being picky, though, in a quarter that turned into a blowout basically across the board for all four. Shares of three of them rose 1% to 5% in post-market trading immediately after the companies reported, with GOOGL the only one getting punished at all.So What Risks do FAANGs Face? So can these stocks--which together compose a pretty decent chunk of the S&P 500 Index's valuation--continue to draw strength? It's hard to bet against them based on their recent history and the way they've dominated the stay-at-home economy.One argument against the bull thesis, maybe, is valuations. Even AAPL, traditionally a stock that traded on the low end of the valuation chain, is priced at around 30 times forward earnings projections. AMZN, unlike AAPL, has never been cheap and isn't now, by any stretch of the imagination. Also, the "pull forward" effect, especially on device sales for AAPL, might be a factor in months to come. People snapped up Macs and iPads in the old quarter as businesses and schools sent workers and students home. How many more of these devices can they buy now? Some say the picture actually looks decent going forward in part because with kids at home, schools and parents will have to buy each child a device, rather than having kids share them at school. Meanwhile, sizzling cloud competition might be starting to level growth prospects in that space for individual companies. AMZN could be learning that up close and personal, judging from the AWS miss. Also, the soft broader economy could be hurting cloud demand from some sectors, like travel.The weak economy could also start weighing more on advertising demand, with possible ramifications for FB and GOOGL. However, as one analyst pointed out Thursday on CNBC, GOOGL's search platform is pretty horizontal, meaning it embraces most sectors around the world. If one sector is hurting, all the others don't necessarily see the impact and stop spending on ads. GOOGL executives sounded cautiously optimistic on their call. In Other News... Turning away from the FAANGs, the rest of the market had a weird day yesterday. The COMP definitely turned things around big time, rising about 200 points from its morning lows to its afternoon highs. The $DJI never got back on its feet after getting knocked down early on, though it did finish off its lows. Those economic numbers Thursday morning looked lousy, no question, and had a lot to do with the market's early struggles. Most of us probably hope we'll never see a gross domestic product (GDP) figure like that again, as the economy tanked at worse than a 30% annual rate in Q2. The question now is what's next on the GDP front, and whether companies and consumers can expect better times ahead. The New York Fed's "Nowcast" statistical model sees Q3 growth at a very nice 13.3%. That's something investors should consider keeping an eye on, especially with the Fed on Wednesday citing some slowdown in the recovery. Will GDP estimates start to drop? We can only wait and watch. It's tempting to say people aren't seeing the forest for the trees, focusing so much on strong earnings from the FAANGs. That's possible, but other major companies also had some good results yesterday. Some of the positive news came from Procter & Gamble (PG), Qualcomm (QCOM), PayPal (PYPL), and UPS (UPS). CHART OF THE DAY: FAANGS DELIVER A TROUNCING: It's not even close. Through yesterday's session, just before four of the "FAANGs" reported outstanding earnings, the FAANGs (NYFANG--candlestick) were already trouncing the S&P 500 Index (SPX--purple line) year to date. Can this huge divergence continue? Data Sources: NYSE, S&P Dow Jones Indices. Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results. A Couple More AAPL Slices: One of the folks with a great understanding of the Tech sector is Angelo Zino, from investment research firm CFRA. Speaking on our media affiliate, the *TD Ameritrade Network, late yesterday, Zino called AAPL earnings "as good as you could have hoped for," with the exception of their lack of guidance. He called iPad and Mac sales, "absolutely phenomenal," though he added it's unclear if the heavy sales pace for those products could continue."Some of the June quarter strength is not sustainable," because it reflected the initial burst of stay-at-home sales, Zino said. He expects "all eyes" to be on services in coming quarters, with wearables more of a factor, too. He also thinks iPhone sales could accelerate with the introduction of 5G, and noted that earnings comparables starting in the March quarter are going to look positive. Is Value Gaining Momentum? Over the last few weeks, we've talked a lot about the possible shift toward value stocks and away from "momentum" ones like the mega-techs. That trend didn't really show up early this week, as Tech stocks ran away with the ball on Monday. When Tech proceeded to lose ground Tuesday the value names didn't show up to play. Energy and Financials remained under pressure amid weak bond yields and falling crude prices, while small-caps also didn't find much of a bid. Still, value has made up some ground on the charts vs. momentum this month. Going into the last session of July, some parts of the market that analysts have generally defined as being "value"--like Financials, Energy, and small-caps--had advanced 8%, 3% and 5%, respectively, vs. big-tech's 5% move higher over the course of the month. What the Tech? It's been a while since we had a technical discussion. After making a new post-COVID intraday high near 3280 last week, the SPX has settled back below 3250, and remains kind of range-bound. There really hasn't been a lot of willingness to try and re-test the February highs above 3300. At the same time, the Fed's willingness to use all its tools, as it basically said this week, probably puts a decent floor under the SPX at around 3000, where it bottomed and then bounced last month.There were a couple of scary days for the market in June, but that hasn't repeated itself. Instead, the markets seem to be grinding their way slowly higher, but without much enthusiasm from buyers above current levels. CFRA says it sees near-term SPX support at 3212 and below that at 3124. The index needs to stay above 3124 to keep the positive momentum going, CFRA said. CFRA added that major indices continue to "oscillate back and forth without gaining much momentum in either direction." Perfectly put. TD Ameritrade® commentary for educational purposes only. Member SIPC.Photo by Sara Kurfeß on UnsplashSee more from Benzinga * August Outlook: Politics Likely To Be In Play As New Month Gets Started * Bring Your "A" Game: Amazon, Apple, Alphabet (And FB) Get Ready To Report After Close * Front Lines Against Coronavirus: Gilead, Moderna Prepare To Update Investors(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The Dow and the S&P 500 closed lower on Thursday after economic data pointed at the steepest contraction of the US economy since the Great Depression in the second quarter.