STTG Market Recap November 5, 2014 – Stock Trading To Go

STTG Market Recap November 5, 2014 – Stock Trading To Go

Indexes gapped up on the open after a strong election day for the GOP which markets generally view as business friendly, and while the S&P 500 held its gains the NASDAQ fell back a bit.  The S&P 500 gained 0.57% while the NASDAQ dropped 0.06%.  We have the official government data on employment Friday but on the Wednesday before that we get a private sector report that estimates the same figures:

Private employers added 230,000 jobs last month, more than estimated and the largest gain since June, according to the ADP National Employment report.

Tomorrow the European Central Bank meets and investors are expecting some sort of action; recall the Bank of Japan acted last week.

The indexes remain in fine shape – here they are on a longer term view.

The NYSE McClellan Oscillator remains overbought.

Alibaba (BABA) continued to build on yesterday’s earnings gains.

TripAdvisor (TRIP)  slid after reporting lower-than-estimated earnings yesterday. This was a case where the chart looked bad and it looks like it was telling you bad news was coming.

Time Warner (TWX) rose on earnings.

Time Warner reported better-than-expected quarterly revenue and profit on Wednesday, helped by higher subscription fees for channels offered by its Turner Broadcasting and HBO.  Revenue from Turner Broadcasting, the operator of channels such as CNN, TBS and TNT, rose 5 percent to $2.4 billion in the third quarter.

Tesla Motors (TSLA) which has been all over the place of late fell during the regular session but is up nearly 7% in the after hours to $247 on the back of its earnings.

Tesla posted earnings that beat expectations  but the electric car maker sharply lowered its fourth-quarter guidance to 30 to 35 cents a share on fewer-than-expected Model S deliveries for the year. Analysts had expected fourth-quarter earnings guidance of about 75 cents a share. The firm also announced plans to postpone Model X deliveries.

The company posted third-quarter earnings per share of 2 cents a share, compared to 12 cents per share in the year-earlier period. Non-GAAP revenue for the quarter came in at $932 million, against the comparable year-ago figure of $603 million. Analysts had expected Tesla to report a loss of about 1 cent per share on $889 million in revenue, according to a consensus estimate from Thomson Reuters. The electric car maker said in its third-quarter shareholder letter that it had the highest ever quarterly deliveries at 7,785 vehicles and the highest ever peak deliveries in a single day at 907 vehicles.

Fun fact:  Fourth quarters during years when midterm elections are held have produced an average gain of 8 percent over the past 65 years, according to the Stock Trader’s Almanac. They’ve been followed by rallies of almost that much in the next three months, making the average 16 percent two-quarter rally the best combination of the election cycles.

Continued – 

STTG Market Recap November 5, 2014 – Stock Trading To Go

Share this post