Arete Trading Wednesday Report
Stocks Mixed on Earnings Report 🐮💸🐻
Stocks mixed on earnings reports. To start with there is a small company DLO which is a recent new issue. The year over year revenue comps were over 160%. They beat earnings estimates with a much larger gain than anticipated. The stock was rewarded with being at an all time high around $62 after market hours. HOOD , Robinhood earnings were simply awful. To start with they announced that 1,600 clients filed a “joint arbitration claim” against the company. That is a polite way of saying class action suit. The company also stated that volume will be much lower than last quarter. The explanation into this stems from crypto trading being 50% of revenue and a large chunk of that being from DogeCoin. How these two material facts escaped or were omitted from the underwriters two weeks ago is baffling. The stock is down to $45 after hours. NVDA earnings were excellent they beat on revenue and earnings. They raised guidance on revenue by 300 million to $6.5 billion. Stock is up $6 after hours. Let’s see if this can boost the tech market tomorrow.
In regard to the indexes, the IWM is hanging on by a thread. We need to hold the 200 day moving average or we will sell down to the $210 level. Many stocks in the index are already rolling over so this may be a matter of time. We continue to avoid. The SPY and QQQ both are below the 21 day moving average. Usually when this happens, we test the 50 day moving average.
You will notice how the stocks in our list that out performing are company specific. This is not a coincidence. Right now Utilities outperformed for the first time in years as the largest gaining sector for the previous month. Today Fed report was filled with generalities and no real direction. This increased the flight to safety and buying also of real estate investment trusts, consumer staples and large pharma companies. Jobless Claims are tomorrow and may shed light on the economy. So far the retails sales coming in at -1.1% vs estimate of -.3% are not great. Until then consider being extremely picky with new ideas.
Lets Look at our Indexes!
Let’s Look at our Stocks!
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