Intel Stock Drops Double-Digits After Earnings Report

Commenting on Intel’s earnings report and today’s trading, Gorilla Trades strategist Ken Berman said:

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Intel Dropped By Double-Digits After Earnings Report

The major indices are all trading slightly lower at midday following another volatile and active morning session on Wall Street. While stocks opened broadly higher thanks to the overnight rally in risk assets, a strong wave of selling pushed the large-cap benchmarks into the red in the first hour of trading. Intel (INTC, -11%) dropped by double-digits in the wake of its earnings report, weighing heavily on the tech sector, while the lower-than-expected profit of American Express (AXP, -2.4%) put pressure on financials and consumer-related issues. The number of U.S. COVID cases jumped above 70,000 in the past 24 hours but despite the fact that hospitalizations also started to rise, the hardest-hit industries remain relatively strong.

Michael Mauboussin’s 10 Attributes of Great Investors [Pt.1]

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkIn 2016, Michael J. Mauboussin completed his 30th year on Wall Street. The analyst, who was working at Credit Suisse at the time, decided to celebrate by reflecting on the ten attributes of great investors he had observed over the previous three decades. He published his ideas in a report in August 2016. I've summarised Read More


The stimulus talks also continue to give headaches for bulls, as despite the deteriorating COVID picture, the talks still haven’t yielded an agreement. In economic news, the Markit manufacturing PMI missed expectations by a hair, but the key services PMI blew away the consensus estimate with a reading of 56 and both indicators continue to signal healthy growth. The highly-anticipated European PMIs were mixed and as a lot of analysts feared, the crucial services sector suffered a huge hit amid the second wave of infections across the continent.

Market Wrap

Dow: 28,293, - 71 or 0.3%

S&P 500: 3,452 - 2 or 0.1%

Nasdaq: 11,456, - 41 or 0.4%

Russell 2000: 1,636, + 6 or 0.3%

Market breadth has been relatively strong this morning, with advancing issues outnumbering decliners by a 5-to-4 ratio on the NYSE at midday. Only 8 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 74 stocks hit new 52-week highs. The major indices have been trading below their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday selling pressure. The key sectors have been diverging substantially for the second day in a row this morning, with tech stocks, industrials, consumer discretionaries, and the real estate sector dragging the broader market lower and only communication services and the defensive healthcare sector holding up well amid the early-morning reversal. Stay tuned!