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Morning Commentary

Waiting Earnings Super Bowl

By Charles Payne, CEO & Principal Analyst
10/26/2020 9:10 AM

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The market limped into the weekend grappling for a spark that didn’t happen despite fantastic earnings results and most economic data coming in substantially above Wall Street consensus. 

This morning, there is a fair amount of panic porn (and there are no chance social media companies will hide the headlines) over the spike in Covid19 cases, particularly in Europe, and the lack of a fiscal stimulus agreement.  Both are old “news,” but headline writers have to make headlines, even if they are re-threading. 

For me, I am not 100% sure what’s moving the market. I think the message is the good news was baked into share prices, hence, the selling when it seemed everything was perfect.  It's not panic selling but taking chips off the table with a little over a week before the election. 

There are distinct differences in the economic polices of the candidates, and despite efforts from billionaire hedge fund managers about the markets rallying in a Biden victory, none of them have to worry about the special tax breaks. 

There has to be another round of stimulus, and early selling this morning is in part messaging to Congress. 

Angst Ahead of the Big Boys

Earnings season shifts into something akin to the playoffs, as the biggest movers in the market report financial results this week.  Thus far, even record positive guidance has not moved the needle, and the biggest names seems to have come up short.

One thing we are seeing especially in technology is the changing of the guard.  Keep that in mind.

Using that analogy, Thursday will be the Super Bowl with the most important names in the market scheduled to report:

These names report, as Congress moves closer toward efforts to reel in the power of these so-called digital gatekeepers.  But even where there is rare bipartisanship, the ways and reasons to give these companies their comeuppances differ.

Hotline Model Portfolio Approach

There are no changes to the Hotline Portfolio Approach.

Today’s Session

European stocks are lower and old tech is at the center of selling after SAP came up short.  I get  a little nervous whenever SAP is in the news, as I remember when the company listed on the New York Stock Exchange. They had a big block party on the block (our office was at 50 Broad) featuring Kool and the Gang.  The music was great, and it was a fun party, but a few days later the market was hammered. 

So, I just get the hibbie jibbies when SAP is making news.

Maker sure to read my Election Report.  


ERNEST REMUS on 10/26/2020 10:02:18 AM
BIDEN & CO. will lead us ALL down---- " THE ROAD TO SERFDOM" ------ the title of the text and documents of F.A.HAYEK ( an author and economist in the early 1930's from Vienna) who was anti "Nazi-Socialism" ---- My though is this ----sounds parallel "Democratic Socialism" Why? "Socialism is the philosophy of failure the creed of ignorance, and the gospel of envy its inherent virtue is the equal sharing of misery" quote by Winston Churchill.

John Cowger on 10/26/2020 12:02:19 PM
I m a Latin woman an so scare about Joe Biden win. My 401k , And my believes in for life are now in a big trouble. I am register democrat but in last election I vote for Trump and this election I going to do the same but the news make me very nervious. My English isnt that well but is better take out my 401k that is with Fidelity or leave it like that until elections passed?

Magda Alvarez on 10/26/2020 3:06:28 PM
Donald Trump worked hard for all of us during his first term. He has things on the right road, which is more than I can say for any other president since Reagan. Go Trump!!!

linda oneill on 10/26/2020 3:29:46 PM
Hello, yesterday Morning, my husband took his 401k and put it into cash. Hes retired. We are quite concerned about this election. Trump 2020

Ryng Natalia on 10/27/2020 10:21:09 AM

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