Wednesday, April 24, 2019

Market Alert - The Close

Stocks overall started higher then sagged into the afternoon and close, finishing out negative. Not all -- SOX surged and managed a solid 0.95% gain, but it too was well off the intraday highs. Indeed, NASDAQ moved to a new all-time high, but it was just intraday as it slid back to the close.

SP500 -6.43, -0.22%
NASDAQ -18.81, -0.23%
DJ30 -59.34, -0.22%
SP400 0.35%
RUTX 0.19%
SOX 0.95%
NASD 100 -0.34%

Perhaps a bit of cold feet ahead of some major earnings after the close: MSFT, FB, V, CMG to name a few.

Those earnings are mostly propelling stocks back up afterhours, recovering some of that lost ground off the session highs. Indeed, GOOG, not even reporting, has recovered all session losses afterhours and it did not even report.

FB: $3-5B charge for FTC legal costs put earnings at 0.85. Back that out and it was a beat at 1.89 vs 1.63. Revenues beat, usage up a bit more than expected. Up 8 clicks afterhours.

MSFT: 1.14 vs 1.00, revenues 30.57B vs 29.84B. Up afterhours.

V: 1.31 vs 1.24, revs 5.5B vs 5.47B, increased guidance. V, however, is down afterhours.

CMG: 3.40 vs 3.01, revenues 1.31B vs 1.26B. Initially lower, now trading flat.

Of course, there is a long time between these earnings and the morning, but the first blush is a rebound from the pre-earnings nervous fades off the early highs.

Recall, the view was the slowdown in Q1 as an after effect of the Q4 stock flop and economic slowing was feared to really impact earnings. Thus far that is not materializing as even the likes of HAS (toys) are beating and jumping on earnings. Thus, there is relief action taking place in the wake of these earnings. Oh, still awaiting TSLA results.

Jon Johnson, Chief Market Strategist

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