It is another mixed session, as investors digest earnings results.  Communication Services is the biggest losing sector, weighed down by Netflix (NFLX), which is lower on news Verizon (VZ) will offer its customers Disney+ (DIS) free for one year.  Meanwhile, 46 attorney generals have joined a NY State led anti-trust investigation into Facebook (FB).

WeWork has been reworked, as Softbank offers to take over the company with a new valuation of $8.0 billion down from $47.0 billion. For me, there are several narratives.

The most important can be summed up in a word: Phew! 

If this company went public at valuation of $47 billion, in my opinion, it would have destroyed the entire market. This is why I waved the red flag when the CEO (Adam Neumann) was privately selling big chunks ahead of the IPO. 

We had a guest on the show that sort of said caveat emptor (buyer beware, if you buy a dud IPO, it’s your fault not Wall Street’s) for investors that might have bought this IPO and have bought other disappointing IPOs.  Yet, Softbank considered the most sophisticated investors in the world pumped in billions at artificially high prices and it is being forced to pump in billions more. 

On that note, 15 Wall Street firms placed Buy recommendations on Peloton (PTON) yesterday, even though it has been an IPO disaster. Maybe everyone should wait for a few quarters before buying the stock. Instead, all the underwriters keep saying buy, and I think it's giving the street a black eye.

The Dow and S&P are edging higher and coming against big upside tests.

• The S&P 500 forms a double top at 3,025
• The Dow has pockets of resistance at 27,015 and 27,219 then 27,350