| Thursday, April 30, 2020 1. Markets pause ahead of key earnings 2. What Apple's quarterly results told investors 3. What Amazon's quarterly results told investors Market Moves Bond prices fell today along with the price of gold. Oil prices were 27% higher in volatile trading, but the stock market was relatively calm. The S&P 500 (SPX), the Nasdaq 100 (NDX) and the Russell 2000 (RUT), all traded lower on the day, though the price action appeared less volatile than in previous days and weeks.
The chart below shows an important comparison. As had been mentioned in this newsletter yesterday, the top 6 companies in the Nasdaq account for more than 46% of the Nasdaq 100 index calculation. These include Netflix (NFLX), Alphabet (GOOG and GOOGL), Microsoft (MSFT), Facebook (FB), Amazon (AMZN) and Apple (AAPL). The first four companies reported earnings earlier and only Apple and Amazon remained (these two companies reported earning after the bell today). The chart compares an equal-weighted portfolio of all six stocks with Invesco's Nasdaq 100 index ETF (QQQ).
The chart shows that, as of the close today, the portfolio price of holding these top six stocks outpaces the markets so far this year. On average, these stocks are on pace to reach a new high as investors have been showing a decidedly bullish attitude towards stocks. While the Chande Momentum Oscillator on the price action for these stocks has slowed, the Net Volume indicator shows a subtly bullish drift. This may prove to be an early indicator of where the index is likely to go in the days and weeks ahead.  What Apple's Quarterly Results Told Investors
It is likely that though the company beat analysts' expectations, investors expected that it would. The chart below seems to indicate this because options market-makers priced in a comparatively narrow range for the earnings event, and the price action during the post-market period stayed within the range. Such action typically implies that the news didn't surprise investors very much.
 SPONSORED BY INVESCO
What Amazon's Quarterly Results Told Investors "If you're a shareowner in Amazon, you may want to take a seat." CEO Jeff Bezos spoke these ominous sounding words before he went on to explain how the company will likely spend all of its quarterly profits in the months ahead. Investors didn't take kindly to the sentiments and sent the share price five percent lower in after-hours trading. However, even that action stayed within the pricing of the options market-makers.
Of the previously mentioned top 6 companies influencing the Nasdaq 100 index, as the chart below shows, only Amazon came out of the gate heading downhill. There are still a large number of companies to report their quarterly earnings, however the remainder of analysts' evaluations will be colored by the baseline that these six companies have set. In general, investors appear to demonstrate that they think these companies have set a positive tone for the months ahead.  The Bottom Line Markets retreated slightly across all assets with the exception of oil prices. Large-cap tech stocks held an uneasy balance while waiting for the two most influential companies, Apple and Amazon, to report after the market closed. Apple's results were surprisingly good, but investors were spooked by the company's unwillingness to make predictions about the coming quarter. Amazon's results were strong, considering the circumstances, but a pessimistic outlook sent shares lower in after-hours trading. How can we improve the Chart Advisor? Tell us at chartadvisor@investopedia.com
Enjoy the Chart Advisor? Copy and share the link below to invite friends to sign up
CONNECT WITH INVESTOPEDIA
Email sent to: mondemand.forex@blogger.com If you wish to update your newsletter preferences or unsubscribe, please click here
114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC. All Rights Reserved | Privacy Policy |
Thursday, April 30, 2020
Score Card
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment