Stocks finished the day mixed, with the S&P 500 falling by 30 basis points and the NASDAQ 100 rising by over 50 basis points. Also, the cyclical stocks struggle as the market grapples with the lack of a stimulus plan. Today, industrials, financials, and materials are all trading lower. Additionally, we can see the TAN ETF was weaker; this, I believe, is a proxy for a blue wave sweep. The more it falls, the more it means the market does not believe in a blue wave sweep. Again, this is merely meant to be a proxy.
At this point, the S&P 500 either needs to rise and breakout or simply head on a path lower. Based on the latest news, I think that lower maybe the like path, as countries in Europe now begin to weigh lockdown measures to to control the spread of the coronavirus. It appears that France will likely be the first to do so, others will follow.
Microsoft reported blow out results on the top and bottom lines. The Azure business line had growth of about 48%, I know in the past this has been a sticking point for investor, but still, this is a great report. Guidance will be key to the conference call. The stock isn’t budging after hours, waiting for that guidance.
AMD went down, finally. Not enough in my opinion, not when we consider that the company will have to issue $35 billion new stock to pay for the deal. I think the stock still heads lower to $75, and probably even lower than that, maybe even to $62. I can’t understand why Xilinix would take a deal in all stock, especially with a stock that is as volatile as AMD.
Boeing is breaking down and the company reports tomorrow morning. This stock just seems like a diaster with, and people not flying growth will be hard to come by for a long time. I think this one still heads lower to $142.
Sorry, have lots on plate today.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.