The market has been under the gun all session long battling back to very minimal loses twice, but as we head into the second half of the session, we could see the buy on dips crowd move to the sidelines.  The latest move lower is coming on word one of the first five confirmed patients with Coronavirus in the United States passed it to their spouse.  The tally is now six in America.

Later, the World Health Organization will announce whether the virus has risen to the level of global emergency. There is pressure from China not to make such a declaration, but others are saying it would help poor nations with international aid.  

I have to admit I’m surprised at today’s resolve.  The declines are very low percentage moves, and considering the amount of media reaction, I would have expected at least a 1% decline or much worse.  Obviously, it’s a developing situation that has to be monitored by investors but remember to focus on the fundamentals.

Earnings Season

Meanwhile, earnings continue to come in better than expected.

193 S&P 500 companies have posted results.

Revenue

• 64% beat
• 36% missed
• Blended results +4.5%

Earnings

• 71% beat
• 19% missed
• Blended results +0.7%

Best Sectors

• Technology 86% beat revenue 96% beat on earnings
• Consumer Discretionary 65% beat on revenue 88% beat on earnings

Amazon to the Rescue?

Amazon (AMZN) shareholders haven’t been happy with earnings for a long time.  Even when the company has posted impressive beats, the stock was down a lot one week later.

I guess one could say Amazon is due to lead the charge, but the company is going to have to show strong numbers in its cloud business as Microsoft (MSFT) and others continue to chip away.

Amazon Earnings Thud	Surprise	1-Week
Q3 2018	+$2.61	-6.6%
Q4 2018	+$0.37	-5.7%
Q1 2019	+$2.37	-0.6%
2Q 2019	-$0.35	-6.6%
3Q 2019	-$0.39	-0.3%

Tweet