First, We look Back
October is really blessing us with some really good returns. Three straight weeks of positive returns. The S&P and Dow Jones hit all time highs last week, as some earnings results gave investors reasons to be bullish about the future. Remember analysts who were predicting the stock market will go into a crash before the year runs out? Well, I don't seem to be hear any of their takes anymore. But then again, they could still be very right about a crash. We still have two months before the year runs out.
But on the tech side, things were going well until Thursday night (more on this below). While his big brothers were partying all last week; the Nasdaq was trying to get over a hang over.
The draw down on the Nasdaq was due to Snapchat revealing that Apple is too powerful and must be obeyed. With the changed with iOS 15 going into full effect in the third quarter, things are really changing in the advertising world. Part of the update requires apps to ask users if they want to be tracked across the web and across other apps.
Snap revealed lower revenue in Q3 and said the changes in iOS are the main reason for the lower ad revenue. Which immediately sent SNAP spiraling down over 23%. But because Snap is not the only company that make money in a similar manner also fell including: Google, Facebook, Twitter, and Pinterest in what we like to call a sympathy move. (A sympathy move emerges when the stock of a company is affected by news delivered by another company, typical one in the same industry.) We will hear more about the βAd-maggedonβ in this weekβs earnings report (more on this below).
On a positive note for the economy, seems people are back to spending all the money they have and then spending the money they do not have (consumers spending make up 70% of US GDP). American Express announced during their earnings call that cardholder spending on goods and services accelerated in Q3. More importantly it was up 19% from Q3 2019 levels. (These are the insights I love seeing from earnings calls).
Now, We Look Ahead
We got A WHOLE LOTTA companies reporting earnings this week. About 40% of the S&P 500 will be reporting. Look at this:
But all eyes will be on the FAAMG stocks (Facebook, Amazon, Apple, Microsoft, Google) as they make up about a quarter of the S&P 500. So as they go, so goes the market (generally). Things I will be paying attention to:
Amazon
Can give us a precursor of what to expect for the holiday shopping season. They began Black Friday deals earlier in the Month.
Interesting Stat: Amazon is now a larger shipper than FedEx.
Google and Facebook
More information on the iOS update effects on advertising
Other than that, they are basically useless in providing insights on the economy.
Apple
Q3 is typically slow for the Apple as people end up waiting for the device refresh that are announced in October.
However, will be interesting to learn how the supply chain is slowing down sales of the newly announced Macs and iPhones.
So tempted to go into the High Walled Garden of Apple
Visa and Mastercard
Much like Amex, they can give us insights on consumer spending
Necessary Man U Update
I cannot believe we got Ronaldo: a 5x Champion League Winner, 4x Ballon Dβor Recepient, Top Goal Scorer in the History of the Champions League and the Euros; out here celebrating beating Atalanta in a group stage match like he just won the World Cup! This is how low we have brought this man. That moment defined for me just how bad Man U is.
Yes, we won the game. But the fact that it took a last minute desperate heave for us to win is just SAD.
I refuse to acknowledge that the game against Liverpool ever took place. Cause it is just simply too embarrassing to even think about.
LIKE HOW?! HOW DO YOU ALLOW 5 GOALS?!
I hope you all have A WONDERFUL week. I will see you back here on Wednesday for another post. In the mean time, Go subscribe to Rambling Mind Podcast for mid week stock market updates. You can also catch me on TikTok, Instagram, and YouTube everyday.
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God bless Each and Everyone of yβall
βπΎ
-Kelechi