Tech Giants Miss Targets, This is What Investors Should Expect

And how to distinguish the bottom line

October 30, 2020

Dear Fellow Investor,

Futures were dragged down this morning by tech stocks regarding concern that Apple Inc.’s (NASDAQ:AAPL) iPhone sales and Twitter Inc.’s (NYSE:TWTR) user growth missed estimates.

Pandemic concerns worldwide, the pending U.S. elections, and the failure to pass a relief package have contributed to what looks to be the worst week for the market since March. 

Weakness in technology is also contributing to volatility as well as lockdowns around the world all denting investor’s confidence in the market.



“Our short-term risk-appetite indicator is firmly in negative territory,” said Jean-Francois Paren, head of global markets research at Credit Agricole CIB, in a note to clients. “The adjustment of risky asset prices to the weaker epidemic and economic outlook could continue, which is not encouraging for risk asset prices in the coming days, especially given the uncertainty regarding the U.S. elections.”

 

Pre-Market Stock Movers October 30

Companies reporting earnings today:

  • Honeywell International Inc. (NYSE:HON)
  • Charter Communications Inc (NASDAQ:CHTR)
  • Colgate-Palmolive Company (NYSE:CL)
  • Phillips 66 (NYSE:PSX)
  • Exxon Mobil Corporation (NYSE:XOM)

 

Alphabet (NASDAQ:GOOG) shares were up, in premarket trading after reporting an increase in digital advertising. 

Facebook Inc. (NASDAQ:FB) daily active users surged 12% year-over-year to 1.82 billion and Amazon (NASDAQ:AMZN) reported better than expected returns anticipating year over year growth in the neighborhood of 28% to 38% in the fourth quarter.

European markets were mixed and Asian markets were lower.

Of note…  spot gold is headed for its third consecutive monthly decline, and oil futures were up.

The dollar and treasuries were steady, and world currencies were stronger in premarket activity.

Top options trades today

  • An investor placed a huge trade for $1,881,880 on Fidelity National Information Serevices, Inc. (NYSE:FIS) with a $65 call expiring on January 21, 2022.
  • Another investor placed a trade valued at $120,000 0n NIO Limited (NYSE:NIO) with a $32 call expiring on January 21, 2022.
  • And one more we’ll report placed a trade for $116,500 on United Rentals, Inc. (NYSE:URI) with a $170 call expiring on November 20, 2020

 

Have a great weekend,

BLI Team


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