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Afternoon Note

All eyes on Big Tech

By Charles Payne, CEO & Principal Analyst
7/25/2019 2:12 PM

It’s been one of those session that felt doomed out of the gate, as too many issues. From continued worries of government oversight of big online giants to earnings reactions and continued worries about Boeing (BA), after Southwest pushed the return date into 2020. 
The market quickly forgot all the things said by the head of the ECB but there will be more accommodation in Europe, and more than likely more accommodation in the United States.  That said, the recession argument took another hit from the Durable Goods report this morning.
Non-defense capital goods ex-aircraft came in +1.9% against consensus of +0.2%. 

Durable Goods Excl. Aircraft


 

Boris comes in Blazing 


The market took a dip lower as saber rattling in the continent as the EU chief Brexit negotiator wrote a letter to EU leaders urging them:

Remain Calm


Stick to our principles and guidelines


Show solidarity and unity


This, after a bombastic speech from Boris Johnson in the House of Commons that seemed like a line in the sand on a no-deal Brexit. 


Online Giants Reporting 


After the close all eyes on corporate behemoths Amazon (AMZN) and Alphabet (GOOG) along with Intel (INTC), which is still an influential name that has coattails. 
Amazon (AMZN) has beaten in each of the last four quarters, but Alphabet has missed twice including the most recent quarter, but it doesn’t matter as share in both stocks got hit the last three times they posted results. 

  One Week Later

  Stock Price Reaction to Earnings Last Three Releases

 

Amazon

Alphabet

-4.3%

-4.5%

 

Intel (INTC) has also beaten the street, mostly by a single-digit percentage margin, but the last two releases saw the stock take a drubbing. 

 

  One Week Later

  Stock Price Reaction to Earnings Last Two Releases

 

Intel

-8.8%


 

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