It’s been a fascinating couple of days for big name growth earnings which will culminate in Amazon’s release after the close. Google, Microsoft, Facebook and Apple have all had fantastic earnings, but the share price reactions have been mixed. Apple is the most fascinating to me. They absolutely destroyed on all fronts. They blew away estimates by so much that analysts didn’t know how to react. The narrative that began to develop was that Apple did so good it’s actually bad. That’s right, they beat estimates by so much it’s actually a raised bar that they can’t possibly live up to. By comparison future quarters will look bad. Folks, I’ve been doing this for 36 years and I’ve never heard of a company being punished for being too good. I get the narrative, but it’s still hard to wrap my arms around.
Anyway, stocks rallied early, reversed and lost those gains, but regrouped to rally again in the afternoon. By the close, the Dow Jones Industrial Average was up 239 points to finish the day at 34,060. The S&P 500 was up 28 points to close at 4,211. The Nasdaq Composite Index was up 31 points to close at 14,082. Gold was down $1 to trade at $1,773 per ounce, while oil was up $1.11 to trade at $64.97 per barrel WTI.
As mentioned, we’ll get a look at Amazon’s earnings after the bell. It is likely to join its brethren with a good earnings report. What its stock will do remains to be seen. Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.