Thursday, October 22, 2020

➡️ Stocks Flat Amidst Earnings Deluge

Good morning. Stocks are in the midst of earnings season. There are some big winners in the crowd..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. Stocks are in the midst of earnings season. There are some big winners in the crowd, such as Snapchat (SNAP), which appeared to profit from Facebook's (FB) decision to stop running political ads. At the other end of the spectrum is Netflix (NFLX), which missed on subscriber growth, having already gained a large number earlier in the year during the pandemic lockdowns.

So while the overall market may appear calm on the surface looking at the broad numbers, there are a lot of changes going on—most of which create profit opportunities for traders.


Now here's the rest of the news:

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MARKETS
DOW 28,210.29 -0.35%
S&P 3,435.35 -0.23%
NASDAQ 11,484.69 -0.28%
*As of market close
Stocks traded sideways on Wednesday, closing near the lows of the day.
Oil dropped nearly 4 percent, closing at $40.05 per barrel.
Gold advanced 0.6 percent, to $1,927 per ounce.
Cryptocurrencies advanced yet again, with Bitcoin soaring nearly 15 percent to $12,690.

Today's TOP TIPS
Big Banks Are Buying into Fintech — Consider this Top Play Instead
One of the biggest trends in the past few years has been in the payment space. A number of companies are offering alternative ways to clear payments that bypass the existing credit card system or the banking system as well.

Naturally, big banks have noticed, and are starting to get into the trend themselves. JPMorgan Chase (JPM), for example, just launched QuickAccept. The new service offers a mobile app and contactless card reader.

» FULL STORY

Insider Trading Report: Tiptree (TIPT)
Michael Barns, Executive Chairman and a major holder at Tiptree (TIPT), recently added 6,104 shares to his holdings. The buy came to just under $32,000. He followed up with a buy on Tuesday of 4,954 shares.

Barnes has been a regular buyer of shares over the past few weeks, and his holdings have crept up from 8.55 million shares to over 8.60 million.

» FULL STORY

Unusual Options Activity: Sibanye Stillwater Limited (SBSW)
Although shares of Sibanye Stillwater (SBSW) are at a 52-week high, one trader sees shares moving even higher. The April 2021 $15 calls on the company saw a 20-fold rise in volume. Over 2,580 contracts traded hands against a prior open interest of 127.

The bet, expiring in 176 days, is that the precious metals mining company will rise another $1.50 from its current price near $13.50. The calls will move in-the-money on a further 11 percent move in shares.

» FULL STORY

IN OTHER NEWS
Financial companies gear up for more regulation under a Biden win.
Automation trends are speeding up amidst the pandemic.
Purdue Pharma settles Opioid-related issues for $8.34 billion.
PayPal adds the ability to buy and sell cryptocurrencies in the United States.
GMC announces an EV version of the Hummer.
Facebook is developing Neighborhoods, its own version of Nextdoor to connect locals
In earnings, Netflix drops as subscriber numbers come in below expectations.
Snapchat rallies on a strong earnings beat.
Shares of Verizon rally as the company beats expectations.
AutoNation reports its "best quarter ever" on a rush for people to buy cars.

S&P 500 MOVERS
TOP
TWTR 8.393%
CB 7.477%
AVY 6.119%
TRV 5.834%
CINF 5.6%
BOTTOM
ETSY 8.136%
NFLX 6.922%
PXD 6.094%
CXO 6.007%
COP 5.955%

Quote of the Day
The recovery remains highly uncertain and highly uneven — with certain sectors and groups experiencing substantial hardship. These disparities risk holding back the recovery. Further targeted fiscal support will be needed alongside accommodative monetary policy to turn this K-shaped recovery into a broad-based and inclusive recovery.
- Federal Reserve Governor Lael Brainard, on the shortlist to be Secretary of the Treasury should former Vice President Joe Biden win the election, on the need for further economic stimulus aimed at lower-income groups now.

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