🍨 Daily Scoop: A New Smell In the Air
By Wed, Oct 16, 2019
Hey Scoopers, smell the air. Seriously, stop whatever you are doing, close your eyes, breathe in, smell the air, breath out. Awww … What’s the smell in the air? It’s the earnings season, baby.
The air smells like the earning seasons. Well, maybe not quite literally, but at least we all got a chance to calm our nerves before we head deep into the crazy, action-packed season of the earnings reports. Are you ready? Take one more deep breath in, out, clear your mind, and let’s go.
Scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections to kick start your earnings season.
MARKETS
- U.S. markets: All three indices finished Monday higher than where they started the day. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: No good news in the cryptocurrency market. Bitcoin’s price continued to drop to $8,200 per coin range. Moreover, technical analysts are not expecting a recovery anytime soon.
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OVERALL MARKET
Earnings season off to a good start
What happened on Tuesday?
The earnings seasons has officially started, and all three indices moved up based on what the companies shared on Tuesday’s earnings reports. The Nasdaq had the best day among the three major indices and jumped 1.24%. The Health Care, Financial Services, Technolgy sectors were among the top gainers of the day.
What was noteworthy in the earnings report?
JPMorgan Chase’s CEO, Jamie Dimon, delivered noteworthy remarks during the company’s Q3 earnings call. The bank had a good quarter, beating analysts’ expectations. Because JPM has a strong presence in the consumer banking segment of the market, its better than expected performance indicates a healthy consumer spending in the U.S. economy.
However, Jamie Dimon used the earnings’ call opportunity to warn investors of a looming recession, sighting trade worries, and the market and economic cycles as some of the reasons we may enter into a low-return market season. Jamie’s remark wasn’t enough to dampen investors’ mood. However, savvy investors should take note. Better than expected quarterly earnings do not mean the stock market and the economy is back on track.
WHAT’S UP
Three big market-movers
So, what happened?
Shares of three giants, JPMorgan Chase (Ticker: JPM), Johnston and Johnston (Ticker: JNJ), and UnitedHealthcare (Ticker: UNH) moved 3.02%, 2.2%, and 8.12%, respectively. All three companies had their better than expected quarterly earnings reports to thank for their higher stock prices on Tuesday.
WHAT’S DOWN
Everyone’s favorite IPO is coming back to the earth
So, what happened?
Not everyone is having an excellent earnings season. Remember those days that Beyond Meat’s (Ticker: BYND) investors couldn’t get enough of the plant-based burger? Well, it looks like that those days are gone. Shares of Beyond Meat are now hovering at around $120. The stock price was done almost 4% on Tuesday too.
The company is expected to report its earnings on October 28th. However, Wells Fargo just warned inevstors of the growing competitors in the plant-based industry with a price target of mid $120 for the company. It looks like the investors are rushing to lock their gains, whatever it could be before they hear the bad news from the company later in October. It’s good to see some sanity is coming to the market, and investors are becoming more realistic about the immediate growth potential for Beyond Meat.
WATER COOLER
From store shelves to your fridge shelves
So, what happened?
The grocery delivery wars just entered a new phase. On Tuesday, Walmart rolled out its service to deliver groceries to your fridge. The company first announced its direct-to-fridge in June, and the service is now officially launched in three cities, Pittsburgh, Kansas City and Vero Beach, Florida.
Will you let a Walmart delivery employees access your fridge? We are more worried about the delivery person sampling the left-over bread pudding we are keeping for tonight’s dessert, more than anything else.
Reply and tell us where you are standing on this new delivery war frontier.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
