Thursday’s Bullish Bar
Sami’s been bearish since the market broke down on a buy setup, so he was surprised to see a bullish day on Thursday last week. What sign would change his sentiment to be bearish again, and how is that affecting his trades for this week? In this video, Sami explains: – The hallmarks of a bullish and bearish market – Why it’s too late to go short – How he would trade a sloppy stock like CTRA – What is so beautiful about DC – Why HRT looks like a long term play
Continue Reading -->Options In Play – Earnings On The Radar Week Of 5/6/22
The mega cap Tech names have reported, but there are still plenty of big names left on the calendar. This coming week will be another busy one, with the FOMC rate decision also coming on Wednesday.
Continue Reading -->Scott Redler’s Dog Bytes: ETF Action
SPX futures are flattish but off the highs after the worst April since 2008. Some sectors made new 2022 lows and a few key names are at multi-year lows. We’ve been Tactical since April 5. This open isn’t very interesting with the Oscillator at -42. We’ll see if there’s a real bounce ahead of the Fed. Resistance is the 4162-4270 area. The longer we stay below that, the higher the probability we see the 3850-4000 region.ARKK has made lower highs and lower lows for almost a year and a half. My moving average rules should have helped you stay out of the way. When something is below the 8/21 day, you can’t hold onto it. Last week’s low was $45.89. Use that for active action today. XBI is weak but sometimes gives trades. It broke $80 to make a new low of $72.59 last week. Use that pivot for active action. XLE lost special status last when it broke the $79 area on April 21. Last Monday, it made a low of $71 and had a decent bounce. I’d stay tactical here. This sector needs time to re-build. Banks haven’t been a place to hide all year. XLF is broken like most sectors. Use last week’s low of $34.45 for tactical action.Positions Disclosure as of 5/2/2022 at 8:52 a.m. ET
Continue Reading -->Coffee With Greta: All Eyes on the Fed
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +17 (+0.1%) SPX Futures: -7 (-0.2%) NASDAQ Futures: -37 (-0.3%) Good morning friends! Futures are mostly lower as traders gear up for the start of May trade with a big week of economic data on the plate. Let’s get right to it! Eyes on the Fed Traders are focused on Wednesday with the Fed decision scheduled for 2:00 p.m. ET. CME Group’s FedWatch Tool shows traders see a 99.8% chance the bank will enact its first 0.5% rate hike. The Fed meeting kicks off Tuesday and comes after the Core PCE Price Index, which is the bank’s favorite inflation gauge, jumped 5.2% year-over-year in March. The market expects the Fed to get more aggressive on inflation moving forward, with 91.3% predicting a 0.75% rate hike in June. Big Week of Economic Data On top of the Fed meeting, traders will get a flood of key economic data this week. It begins with both the S&P Global and ISM Manufacturing PMI surveys for April at 10:00 a.m. ET today. The Commerce Department also releases its March construction spending report at 10:00 a.m. Tuesday morning, the Labor Department releases its March Job Openings and Labor Turnover Survey (JOLTS) and the Commerce Department reports March factory orders. Wednesday morning payroll firm ADP releases its April private jobs report and the Commerce Department releases the March trade deficit. The S&P Global and ISM Services PMI surveys will also be released Wednesday. On Thursday the Labor Department reports weekly jobless claims as well as Q1 productivity and unit labor costs. And finally, the official April jobs report will be released Friday. The week also includes more Q1 earnings reports with 150 S&P 500 companies scheduled to report. Oil Prices Slip on China Growth Concerns Oil prices are down today amid new concerns about weak economic growth in China. West Texas Intermediate crude futures are down 3.9% to $100.50 bbl while Brent crude futures are down 3.6% to $103.30 bbl. The drop comes after China released new data over the weekend taht showed its factory activity contracted in April. That was the second straight monthly contraction and was the lowest level of activity since February 2020. The EU is still considering a ban of Russian oil imports by the end of the year. The European Commission held talks with EU member states about that proposal over the weekend. Berkshire Hathaway Holds Annual Shareholders Meeting Berkshire Hathaway (BRK.A) held its first in-person annual shareholder’s meeting since 2019 on Saturday. Berkshire Chairman Warren Buffett bemoaned the stock market as a “gambling parlor” during his speech at the meeting. Buffett said, “Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism.” Vice-chairman Charlie Munger said, “We have people who know nothing about stocks being advised by stockbrokers who know even less”. Munger said the market is “almost a mania of speculation”. The two also railed against cryptocurrencies, specifically Bitcoin, with Buffett saying it “doesn’t produce anything”. “Assets, to have value, have to deliver something to somebody,” said Buffett. “And there’s only one currency that’s accepted. You can come up with all kinds of things. We can put up Berkshire coins, put up Berkshire money but in the end, this is money,” as he held up a $20 bill. Munger discouraged Americans from investing their retirement money into Bitcoin. “When you have your own retirement account, and your friendly adviser suggests you put all the money into bitcoin, just say no,” he said. Berkshire Increases Stake in Activision Blizzard Activision Blizzard (ATVI) shares are up 1.8% ahead of the open after Warren Buffett announced Berkshire increased its stake in the company. Berkshire now owns about 9.5% of Activision shares as part of a merger arbitrage play. The investment is a bet that Microsoft’s (MSFT) planned acquisition of Activision will go through. Microsoft plans to buy the video game company for $95 per share. Berkshire has been buying more shares as the stock trades below that price. “If the deal goes through, we make some money,” said Buffett. In Case You Missed It The Nasdaq logged its worst month since October 2008 in April and hit a fresh 2022 low at the close on Friday. The tech-heavy index tumbled 13.26% last month. The Dow finished April 4.9% lower while the S&P 500 tumbled 8.8%. The S&P is down 13.3% YTD, marking the worst start to a year since 1939. The Nasdaq is deep in bear market territory, down more than 22% from its most recent record.
Continue Reading -->Coffee With Greta: Is Apple Rotten?
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -135 (-0.4%) SPX Futures: -39 (-0.9%) NASDAQ Futures: -165 (-1.2%) Good morning friends! Futures are lower following a string of earnings disappointments and the release of hot inflation data. Let’s get right to it! Apple Beats Expectations, Dips On Supply Chain Warnings Apple (AAPL) shares are slipping 1.6% ahead of the open after topping fiscal Q2 expectations but warning about supply chain issues. The tech giant reported earnings of $1.52 per share on $97.28 billion in revenue. That was better than analysts’ expectations for EPS of $1.43 on $93.89 billion in revenue. iPhone revenue rose 5.5% annually to $50.57 billion. Apple did not provide Q2 guidance. The board of directors authorized $90 billion in share buybacks and the company raised its cash dividend by 5% to $0.23 per share. CEO Tim Cook said on the earnings call Apple is “not immune” to supply chain challenges. Executives expect those issues will dent sales by $4 billion to $8 billion. Amazon Tumbles On Surprise Loss, Weak Outlook Amazon (AMZN) shares are plunging 10.1% in premarket trade after reporting a surprise Q1 loss and forecasting a weaker-than-expected Q2. The online retail giant reported a loss of $7.56 per share. That included a $7.6 billion loss from Amazon’s investment in electric truck maker Rivian (RIVN) as the stock plunged more than 50% in Q1. Revenue rose 7% year-over-year to $116.4 billion. That was in-line with analysts’ expectations but marked the slowest growth in 20 years. Amazon Web Services brought in $18.44 billion in revenue vs $18.27 billion expected. Ad revenue rose 25% to $7.88 billion but that was lower than analysts’ estimates for $8.17 billion. Amazon forecast Q2 revenue between $116 billion to $121 billion. Wall Street was expecting guidance for $125.5 billion in revenue. Intel Slips On Disappointing Guidance Intel (INTC) shares are down 4.4% ahead of the open on disappointing guidance despite beating Q1 expectations. The chipmaker reported adjusted earnings of $0.87 per share on $18.35 billion in revenue. That topped analysts’ expectations for adjusted EPS of $0.81 on $18.31 billion in revenue. Sales at Intel’s client computing division, which includes PC chips, fell 13% to $9.29 billion vs $9.42 billion expected. Revenue in the company’s data-center category rose 22% to $6 billion vs expectations for $6.78 billion. The company forecast adjusted Q2 EPS of $0.70 and $18 billion in revenue. That missed analysts’ estimates for adjusted EPS of $0.83 on $18.38 billion in revenue. Roku Pops On User Increase Roku (ROKU) shares are up 4% in premarket trade after beating Q1 revenue expectations. The digital media company reported a loss of $0.19 per share on $734 million in revenue. That loss was in-line with analysts’ expectations but revenue beat expectations for $718 million. Roku added 1.1 million active accounts last quarter, bringing the total to 61.3 million. That was just shy of analysts’ expectations for 61.8 million. The CEO said, “We have delivered solid performance in a challenging operating environment and expect that we will continue to navigate through macro headwinds, including inflationary pressures, geopolitical conflict, and supply chaindisruptions”. Roku forecast Q2 revenue will come in at $805 million vs expectations for $816 million. Robinhood Dragged Down by Weak Q1 Results Robinhood (HOOD) shares are tumbling 11.3% ahead of the open after reporting a steeper than expected first-quarter loss. The stock trading platform reported a loss of $0.45 per share on $299 million in revenue. That was worse than analysts’ expectations for a loss of $0.36 per share on $355.8 million in revenue. Robinhood’s monthly active users fell for the second straight quarter. The company had 15.9 million MAUs in Q1 vs 17.3 million in Q4. Average revenue per user tumbled to $53 vs $137 a year ago. This comes after CEO Vlad Tenev announced Robinhood is firing 9% of its full-time employees earlier this week. The stock is trading far below its IPO price of $38 per share. Exxon Mobil Profits Hit By Russia Charge Exxon Mobil (XOM) shares are down 1.2% in premarket trade after missing Q1 expectations. The oil company reported adjusted earnings of $2.07 per share on $90.5 billion in revenue. That missed analysts’ expectations for adjusted EPS of $2.23 as the quarter included a $3.4 billion charge related to its Sakhalin-1 operation in Russia. But revenue beat expectations for $82.8 billion. Chevron Profit Quadruples Chevron (CVX) shares are down 1.2% ahead of the open despite reporting huge Q1 profits. The oil giant reported adjusted earnings of $3.36 per share $54.37 billion in revenue. The $6.3 billion in profit was more than quadruple $1.37 billion in Q1 2021 and revenue jumped from $32.03 billion. Wall Street had forecast adjusted EPS of $3.27 on $47.94 billion in revenue. Musk Sells $4 Billion in Tesla Stock After Twitter Deal A new SEC filing shows Tesla (TSLA) CEO Elon Musk sold nearly $4 billion worth of the electric automaker’s stock this week. The bulk of those sales were made on Tuesday, the day after Twitter (TWTR) accepted Musk’s $44 billion takeover offer. Tesla shares tumbled 12% on Tuesday. In a tweet Thursday, Musk said “No further TSLA sales planned after today”. Tesla shares are 2.2% higher in premarket trade. PCE Inflation Hits 40-Year High The Bureau of Labor Statistics’ Personal Consumption Expenditures index shows prices continued to soar in March. The headline PCE Price Index surged 0.9% monthly and jumped 6.6% annually. That was the fastest annual price gain since January 1982 and up from 6.4% in February. But core inflation pressures cooled in March. The Core PCE Price Index, which is the Fed’s preferred inflation measure and excludes food and energy prices, rose 0.3% monthly and 5.2% annually. That was in-line with expectations on a monthly basis and a cooldown from 5.3% annual inflation in February. Economists are hoping the slowing core reading means inflation may have peaked in
Continue Reading -->Coffee With Greta: Twitter, Meta Pop on Earnings
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +234 (+0.7%) SPX Futures: +54 (+1.3%) NASDAQ Futures: +239 (+1.8%) Good morning friends! Futures are higher on another big day of earnings. Let’s get right to it! Twitter Tops Q1 User Expectations Twitter (TWTR) shares are up 1.1% in premarket trade after reporting better-than-expected user growth in Q1. The social media giant reported net income of $513 million in the quarter, or $0.61 per share. That figure was not comparable to analysts’ expectations as it includes a gain from Twitter’s sale of MoPub. Twitter’s $1.2 billion in revenue was shy of analysts’ estimates for $1.23 billion. But the company had 229 million monetizable daily active users (mDAUs) last quarter, better than 226.9 million expected by analysts. U.S. mDAUs jumped 6.4% year-over-year while international mDAUs surged 18.1%. The positive report came as a surprise to many analysts who had been speculating Twitter accepted Musk’s buyout deal earlier this week in anticipation of bad earnings. The company declined to provide guidance citing that deal. Meta Surges On Q1 Earnings Beat Meta Platforms (FB) shares are rallying 14.2% ahead of the open after beating Q1 expectations. The Facebook parent company reported adjusted earnings of $2.72 per share on $27.91 billion in revenue. That topped analysts’ expectations for adjusted EPS of $2.56 but was shy of estimates for $28.2 billion in revenue. Revenue rose 7% year-over-year, marking the first time in company history that metric has been in single digits. Daily active users rose more than expected, after declining for the first time in Q4. Facebook had 1.96 billion DAUs in Q1, up 3 million from Q4 and better than 1.95 billion expected. Monthly active users came in shy at 2.94 billion vs 2.97 billion expected. The company continued to ramp up spending on the metaverse with its Reality Labs segment losing $2.96 billion in Q1, up more than 61% year-over-year. Meta forecast Q2 revenue between $28 billion and $30 billion in Q2, falling short of Wall Street’s expectations for $30.6 billion. The company lowered its total expenses guidance for 2022 to between $87 billion and $92 billion. Ford Tops Q1 Expectations Ford (F) shares are up 1.5% in premarket trade after reporting a strong first quarter. The automaker reported adjusted earnings of $0.38 per share on $32.1 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $0.37 on $31.13 billion in revenue. The adjusted results excluded the $5.4 billion loss caused by Ford’s 12% stake in electric truck maker Rivian (RIVN). Ford reiterated its guidance for full-year pretax adjusted earnings between $11.5 billion and $12.5 billion. Analysts had been expecting a downgrade due to inflation and continued supply chain issues. The CFO said he expects Ford’s wholesale volumes to increase by 10% to 15% this year compared to 2021. PayPal Cuts Outlook PayPal (PYPL) shares are 2.6% higher ahead of the open despite the company cutting its earnings outlook. PayPal reported adjusted Q1 earnings of $0.88 per share on $6.5 billion in revenue. That was in-line with analysts’ expectations. The fintech giant had 429 million active accounts last quarter, up from 426 million in Q4 and better than analysts’ estimates for 428.4 million. PayPal forecast adjusted Q2 earnings of $0.86 per share and $6.8 billion in revenue. That missed Wall Street’s outlook for adjusted EPS of $1.21 and revenue of $7.1 billion. The company also cut its full-year outlook, forecasting revenue growth between 11% and 13% this year and adjusted EPS between $3.81 and $3.93. Pinterest Rallies On Earnings Beat, User Growth Pinterest (PINS) shares are rising 7.7% in premarket trade after reporting strong Q1 user numbers. The social media company reported adjusted earnings of $0.10 per share on $575 million in revenue. That beat analysts’ expectations for adjusted EPS of $0.04 on $573 million in revenue. Revenue rose 18% year-over-year. Pinterest had 433 million monthly active users last quarter, up from 431 million in Q4. That was shy of analysts’ expectations for 437.0 million but was the first increase in a year. Pinterest forecast its Q2 revenue will rise 11% year-over-year to $680 million. That missed Wall Street’s expectations for $693 million. Qualcomm Crushes Fiscal Q2 Expectations Qualcomm (QCOM) shares are up 6.2% ahead of the open after crushing fiscal Q2 expectations. The chipmaker reported adjusted earnings of $3.21 per share on $11.16 billion in revenue. That was sharply higher than analysts’ expectations for adjusted EPS of $2.91 on $10.6 billion in revenue. Profits surged 69% year-over-year while revenue jumped 41%. Qualcomm reported $9.55 billion in chip sales last quarter, up 52% year-over-year and better than $8.86 billion analysts were expecting. Its technology licensing sales fell 2% annually to $1.58 billion but still topped estimates for $1.55 billion. Qualcomm forecast fiscal Q3 earnings between $2.75 and $2.95 per share on $01.9 billion in revenue. That was stronger than expected guidance for $9.98 billion in sales. Southwest Airlines Jumps On Revenue Beat Southwest Airlines (LUV) shares are 3.4% higher in premarket trade after beating Q1 revenue expectations. The airline reported an adjusted loss of $0.32 per share vs analysts’ expectations for a $0.30 loss. Southwest’s $4.69 billion in revenue was higher than estimates for $4.67 billion. March was the first month that operating revenue was higher than 2019 levels since the pandemic began. Southwest expects to be profitable for the full-year and forecast Q2 revenue growth of 8% to 12% compared to 2019. Teladoc Craters After Sharp Q1 Loss Teladoc (TDOC) shares are plummeting 44.1% in premarket trade after slashing its outlook. The telemedicine company reported a loss of $41.58 per share, which included a $6.6 billion impairment charge related to goodwill. Teladoc’s revenue of $565.4 million missed analysts’ expectations for $569 million. The company forecast Q2 adjusted ebitda of $39 million to $49 million on $580 million to $600 million in revenue. That missed analysts’ estimates for adjusted ebitda of
Continue Reading -->Coffee With Greta: Traders Face the Earnings Flood
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +220 (+0.7%) SPX Futures: +14 (+0.3%) NASDAQ Futures: +25 (+0.2%) Good morning friends! Futures are rebounding as traders digest a flood of big Q1 earnings. Let’s get right to it! Alphabet Tumbles on Earnings Miss Alphabet (GOOGL) shares are falling 4.3% ahead of the open after missing Q1 profit and revenue expectations. The Google parent company reported earnings of $24.62 per share on $68.01 billion in revenue. That missed analysts’ expectations for EPS of $25.91 on $68.11 billion in revenue. Overall revenue rose 23% year-over-year, down from 34% growth in Q1 2021. YouTube advertising revenue came in short of analysts’ expectations at $6.87 billion while Google cloud revenue beat estimates at $5.82 billion. Traffic acquisition costs were higher than expected at $11.99 billion. Alphabet’s board authorized $70 billion in share buybacks for 2022. Microsoft Tops Fiscal Q3 Expectations Microsoft (MSFT) shares are up 3.8% in premarket trade after beating fiscal Q3 expectations across the board. The tech giant reported adjusted earnings of $2.22 per share on $49.36 billion in revenue. That topped analysts’ expectations for adjusted EPS of $2.19 on $49.05 billion in revenue. Revenue rose 18% year-over-year, down from 20% in the previous quarter. Sales and marketing costs rose 10% year-over-year to $5.6 billion. Microsoft benefited from higher prices on some of its Office 365 productivity software subscriptions in the quarter. General Motors Q1 Sales Fall Short General Motors (GM) shares are up 1.5% ahead of the open after mixed Q1 results. The automaker reported adjusted earnings of $2.09 per share versus analysts’ expectations for $1.68. But GM’s $35.98 billion in revenue was short of expectations for $37.01 billion The company hiked its full-year net income forecast to between $9.6 billion and $11.2 billion. GM also raised its full-year adjusted earnings outlook to between $6.50 and $7.50 per share, as it increased its ownership stake in its Cruise autonomous vehicle unit. The automaker still plans to produce 25% to 30% more vehicles this year compared to 2021. Chipotle Benefits From Price Hikes Chipotle Mexican Grill (CMG) shares are up 4.6%in premarket trade after beating Q1 expectations. The restaurant chain reported adjusted earnings of $5.70 per share on $2.02 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $5.64 on $2.01 billion in revenue. Same-store sales rose 9% year-over-year versus Wall Street’s expectations for 7.9%. Chipotle said higher menu prices helped offset rising costs for beef, avocados, paper, and labor last quarter. The company did not provide full-year guidance but said it expects same-store sales growth between 10% and 12% in Q2. Boeing Falls on Weak Q1 Boeing (BA) shares are down 3.8% ahead of the open after reporting a steeper than expected Q1 loss. The plane maker reported a core loss of $2.75 per share on $13.99 billion in revenue. That was worse than analysts’ expectations for a core loss of $0.27 per share on $16.02 billion in revenue. Revenue was down 8% compared to Q1 2021. Boeing struggled with production delays during the quarter. The company announced it is pausing production of its 777X plane through 2023 which will create $1.5 billion in abnormal costs starting this quarter. Boeing is ramping up its 737 Max output to 31 planes a month in Q2 after delivering 95 in total in Q1. Spotify Drops Despite Strong Subscriber Growth Spotify (SPOT) shares are down 6.4% in premarket trade despite reporting strong subscriber growth in Q1. The streaming giant reported earnings of €0.21 on €2.66 billion in revenue. Analysts were expecting a loss of €0.23 per share on €2.8 billion in revenue. Monthly active users jumped 19% year-over-year to 422 million, topping its own expectations by about 1 million. Spotify said that number included 3 million users who were logged out during a service outage and created new accounts. Premium subscribers rose 15% to 182 million. The company forecast 428 million monthly active users in Q1 and 187 million premium subscribers. That forecast includes an expectation to lose 600,000 more subscribers once it fully shuts down its business in Russia. Robinhood Fires 9% of Workforce Robinhood (HOOD) shares are down 4.5% ahead of the open after announcing it will fire 9% of its full-time employees. CEO Vlad Tenev made that announcement in a blog post Tuesday evening. Tenev said the company’s rapid expansion over the past two years led to “some duplicate roles and job functions”. Robinhood is scheduled to report Q1 earnings after-hours tomorrow. Lucid Rallies on Saudi Deal Lucid Group (LCID) shares are up 4.3%in premarket trade after announcing a sales deal with Saudi Arabia. The electric automaker reached an agreement to sell up to 100,000 vehicles over a 10-year period to the Saudi Arabian government. The deal includes an initial commitment for 50,000 Lucid Air vehicles. Lucid’s CEO called it “another pivotal moment in our acceleration of sustainable transportation worldwide”. Tesla Tumbles After Twitter Accepts Musk Buyout Tesla (TSLA) shares fell 12.2% Tuesday after Twitter (TWTR) accepted CEO Elon Musk’s $44 billion offer to buy the social media company. That drop wipe $126 billion off the electric automaker’s market cap. Part of the funding for that buyout includes a $12.5 billion margin loan against Musk’s Tesla stock. Although Musk is the richest person in the world, much of his wealth is tied up in TSLA. Musk will now be in charge of Tesla, Twitter, SpaceX, the Boring Company, and Neuralink. He’s made it clear he wants to heavily influence the day to day operations at Twitter. Tesla is also still struggling to resume production at its factory in Shanghai, China. TSLA shares are up 0.6% ahead of the open. Pending Home Sales Preview The National Association of Realtors reports pending home sales for March at 10:00 a.m. ET. Economists are expecting that report to show a 1.8% decline in the number of contracts signed to
Continue Reading -->The Most Bearish Day
Last Thursday was what Sami said was probably the single most bearish day he’s ever seen. Every single big name started the day up, but then sold off. Should you expect to see a lot of selloffs this week, too? In this video, Sami explains: – Why timing is so difficult this week – Which supposedly recession-proof stocks were hit – What makes CTIC the best bullish stock – Why DCPH is both better and worse than CTIC – The most likely outcomes for TWTR
Continue Reading -->Scott Redler’s Dog Bytes: Bearish Semis and Crypto
SPX broke 4370 Friday and closed on the lows. We’ll see if we test the March lows this week. The SPX is getting downside follow-through with futures down 40 handles. Can it hold the bottom of the range that starts around 4160? That’s the question. The low of the year is 4111.NVDA’s sell signals preceded major weakness in tech. $278 was key. Then it broke macro support at $206-$210 which was bad. Maybe we’ll get a cute oversold bounce vs. a 5-15-30 low. $195 is Friday’s low. AMD’s March 30 sell signal was a sign to take risk down. It’s been weaker than the market since then. It hit $87.94 Friday. It’s a bit oversold. Maybe there is a cute Red Dog Reversal long for active cash flow today. Bitcoin has been in a big bear market since the sell signal on November 14. There have been tactical trades but no real traction. $32K-$37K is a big macro area. We’ll see if that holds, or if they really increase volatility in the weeks ahead. This gives clues on tech so watch it. Ethereum went from $2700 up to $3500+ and then the upper flag broke around $3400. It’s back below the moving averages. I’m glad I Tweeted that I got smaller into that $3500+ area. I’d stay small. Also, if you’re in alt coins, know that some will just never come back. Don’t have a false sense of security. But I will accumulate CRO, SOL, MVDG, GALA, and WAXP in the weeks ahead.Positions Disclosure as of 4/25/2022 at 9:00 a.m. ET
Continue Reading -->Coffee With Greta: Twitter Talks With Musk
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -218 (-0.7%) SPX Futures: -30 (-0.7%) NASDAQ Futures: -81 (-0.6%) Good morning friends! Futures are lower as traders gear up for a huge week of earnings. Let’s get right to it! Twitter Talks With Musk Twitter (TWTR) shares are up 4.7% ahead of the open following reports the social media giant could reach a buyout deal with Elon Musk as early as today. The board of directors reportedly met Sunday to discuss Musk’s $46.5 billion tender offer. The New York Times reported those talks with Musk continued into the early hours of today. Twitter has declined to comment on the reports. Coca-Cola Tops Q1 Expectations Coca-Cola (KO) shares are up 1.8% in premarket trade after beating Q1 expectations. The beverage maker reported adjusted earnings of $0.64 on $10.5 billion in revenue. That topped analysts’ expectations for adjusted EPS of $0.58 on $9.83 billion in revenue. Revenue was up 16% year-over-year. Coke said halting its business in Russia will dent revenue and operating income by 1% to 2% this year. The company reiterated its full-year outlook for revenue growth between 7% to 8% and comparable EPS growth between 5% to 6%. Activision Blizzard Falls Short in Q1 Activision Blizzard (ATVI) shares are slipping 0.4% ahead of the open after missing Q1 expectations. The video game company reported adjusted earnings of $0.64 per share on $1.77 billion in revenue. That was lower than analysts’ estimates for adjusted EPS of $0.71 on $1.82 billion in revenue. Activision blamed the miss on lower demand for its “Call of Duty” game franchise as gamers return to pre-pandemic habits. The company did not provide guidance as Microsoft’s (MSFT) acquisition is pending. That $69 billion deal is expected to close by June 30, 2023. It’s been approved by both company boards but is still awaiting regulatory approval. Oil Prices Tumble on Demand Fears Oil prices are falling today as Covid lockdowns continue in Shanghai, China. West Texas Intermediate crude futures are down 4.8% to $97 bbl while Brent crude futures are falling 4.8% to $101 bbl. Authorities in Shanghai put up fences around residential buildings as the recent Covid outbreak continues. A few cases have also been identified in Beijing, prompting fears of an impending lockdown in that city. China’s zero-Covid policy threatens demand levels for oil as China is the largest crude importer in the world. Treasury Yields Slump on Global Growth Fears U.S. Treasury yields are also falling on concerns surrounding those Covid measures in China. The 10-year Treasury yield is down 10 basis points to 2.82%, the 2-year yield is down 10 basis points to 2.6%, and the 30-year yield is down 5 basis poits to 2.89%. Yields spiked last week in anticipation of aggressive action from the Fed to tackle inflation. But the Covid outbreaks in China are now prompting fears of a slowdown in global economic growth this year. Big Earnings Reports Ahead The market is preparing for a rush of huge Q1 earnings reports this week. Here are the highlights: Tuesday AM: Pepsico (PEP), UPS (UPS), General Electric (GE), and JetBlue (JBLU) Tuesday PM: Microsoft (MSFT), Alphabet (GOOG, GOOGL), and General Motors (GM) Wednesday AM: Boeing (BA) and Spotify (SPOT) Wednesday PM: Meta Platforms (FB), Paypal (PYPL), Qualcomm (QCOM), Ford (F), Teladoc (TDOC), and Pinterest (PINS) Thursday AM: Twitter (TWTR), Caterpillar (CAT) and Southwest Airlines (LUV) Thursday PM: Apple (AAPL), Amazon (AMZN), Intel (INTC), Roku (ROKU), and Robinhood (HOOD) Friday AM: Exxon Mobil (XOM) and Chevron (CVX) In Case You Missed It Bed Bath & Beyond (BBBY) shares popped after-hours on Friday after a report on buyer interest for its Buybuy Baby Unit. The Wall Street Journal reported the interested parties are private-equity firm Cerberus Capital Management LP and Tailwind Acquisition Corp. Bed Bath & Beyond has been facing pressure to sell off the baby retailer and take the rest of its business private. BBBY shares are down 4.7% ahead of the open.
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