3 of the Biggest Companies on the S&P for Sale?
Welcome to the Rude Awakening for January 27, 2021…
It is a BIG day in the marketplace.
We have the Fed minutes coming out — but don’t expect much news there.
The headlines are about the slough of earnings we have coming out today.
The pre market selloff was STEEP in the S&P e-mini futures, but started rebounding even before market open, as you can see below.
Right at the opening, the S&P is down a little over 50 points.
We talked about the blow-off top yesterday, and it seems to be dropping as we predicted, but it remains to be seen if this will indicate a change of direction in the markets.
There are a lot of specific stocks seeing a lot of activity that I want to put on your radar…
You Want to Add These to Your Watchlist
First up, Boeing (BA) just reported earnings last year’s full fiscal results… and, well… it was NOT good.
$12 BILLION in losses.
They opened this morning down over 3%.
This might be an interesting addition to your watchlist looking for a lower entry point.
Tesla (TSLA) is also reporting earnings today after the closing bell. They’re trading down a little over 1.5%, but it’s still up near its recent all time highs at the $875 level.
Options are implying an 8% move, more than historical volatility of about 4.6%.
Market response to TSLA earnings always tends to be a bit muted, because they always report car sales prior to earnings, and investors can usually extrapolate what earnings will look like based on sales.
Their profitability is going to be key to the earnings report we’ll see later on.
Facebook (FB) is another big one reporting later today. Flat on the open, about 15 minutes into today they’re trading nearly 2.5% down.
Options are showing a 6.6% implied move, in line with typical moves expected post earnings, so keep that one on your watchlist as well.
And last but not least, Apple Inc. (AAPL) is also reporting earnings after the close. It is trading pretty much flat right now, and we’re seeing a 6.6% implied move, compared to usual expectations of about 4.4%
Now, AAPL, FB, TSLA comprise a huge percentage of the cap weighted index.
These are all companies to keep on your watchlist today and tomorrow.
We’ll talk to you tomorrow.
Editor, Rude Awakening