Mastercard And Facebook Join The Rally After Earnings

Mastercard And Facebook Join The Rally After Earnings
mohamed_hassan / Pixabay

Commenting on the earnings of Mastercard and Facebook and today’s trading so far, Gorilla Trades strategist Ken Berman said:

Play Quizzes 4

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2020 hedge fund letters, conferences and more

The major indices are all trading higher at midday, recovering some of their steep losses following yesterday's wild session. Heavy trading continued in some of the most-shorted issues like GameStop (GME, -62%) and AMC (AMC, -63%) as several brokerages limited trading in their shares due to the unprecedented volatility of the past few days, but the short squeeze's impact on the broader market has been less pronounced this morning. Apple (AAPL, -2.2% ) and Tesla (TSLA, -3.4%) have been under pressure in the wake of their earnings report this morning, but Mastercard (MA, +3.1%) and Facebook (FB, +1%) joined the rally after publishing bullish quarterly numbers.

Fund Manager Profile: Zhang Hui Of China’s Southern Asset Management

investHistorically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More

In economic news, the first reading of the fourth-quarter GDP print was a tad below expected, with a reading of 4.0%, but the recovery remained on track despite the renewed COVID pressure. New jobless claims came in well below the consensus estimate, helping the rebound stocks, but new home sales missed expectations and the CB Leading Index confirmed the slowing pace of growth. Visa (V, +2.6%) will report earnings after the closing bell, and in light of Mastercard’s promising numbers, the financial sector could get another boost.

Market Wrap

Dow: 30,842, + 538 or 1.8%

S&P 500: 3,813 + 62 or 1.7%

Nasdaq: 13,396, + 126 or 1.7%

Russell 2000: 2,096, - 13 or 0.6%

Market breadth has been relatively weak this morning, with advancing issues outnumbering decliners by only a 2-to-1 ratio on the NYSE at midday. No stocks hit new 52-week lows on the NYSE and the Nasdaq, while 68 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. While all of the main sectors are in the green at midday, with utilities, financials, and industrials leading the charge, we saw notable weakness in energy- and consumer-related issues, so we could be in for another very active afternoon session. Stay tuned!

Updated on

Gorilla Trades is the complete solution for today's modern investor, and has been a trusted resource for thousands of investors, stockbrokers and fund managers for over 20 years. Whether you're interested in learning how to trade stocks, just starting to build your portfolio, or you're an experienced investor looking for powerful stock picks; take your portfolio to new heights with Gorilla Trades!
Previous article These Are Ten Best Performing Commodities Of 2020
Next article New S&P Tech M&A Analysis: Getting Into The SPAC Act

No posts to display