Things you need to know –
- AAPL and AMZN report underwhelming results – markets lower
- Home Sales plunge
- CVX and XOM report earnings and handily beat the estimates
- ECB leaves monetary policy unchanged…what will Jay do?
- Try the Stuffed Chicken Cutlets
The US economy grew by only 2% in the 3rd qtr.….less than the expected 2.8%, Pending home sales fell by 2.3% m/m and by 7.2% y/y…..a much weaker number than investors expected….and then Joey went to Capitol Hill to present a ‘revamped’ $1.85 trillion spending plan’ that was designed accompany the $1 trillion infrastructure that has been held up in the House by the left wing of the Democratic party as they demanded that we spend at least $3.5 trillion otherwise they would continue to hamper all efforts to move forward – (although – we are hearing this morning that they may have reconsidered their stance and are now supporting the language in the latest version)…..…… At about 2 pm – we heard from Nancy who told us that the new spending bill was just ‘remarkable’ all while Zucky – announced a name change for Facebook…. now known as Meta …. the name change precedes a symbol change that will take place in December….so FB become MRVS…. (Metaverse)
Investors remained excited as stocks continue to advance……Generations Y and Z couldn’t stop giggling with excitement over the new opportunities at MRVS to create a ‘virtual world’ where you can play with friends and give yourself a makeover – you can be a cartoon character, you can be an animal, you can be a robot, you can be a rock if you want….in the end you can be anything you want and look anyway you want all within the confines of your bedroom – never having to go outside or never having to socialize in the real world, never having to ‘be’ – only adding to the rising level of isolation and anxiety….that so many people feel……MVRS (or FB) rose 1.5% on the news….while everyone and their brother commented on what the news means to them……
From the spending side – congress did not appear to be rolling over with excitement – although you would never know that if you listened to Nancy…. ……yet – stocks managed to go higher as we got more ‘better than expected’ earnings reports that has left investors yearning for even more. And then, there was all that excitement over AMZN and AAPL earnings…. earnings that kept everyone on the edge of their seats as the clock ticked….
By the end of the day – the Dow rose 240 pts or 0.7%, the S&P rose 45 pts or 1%, the Nasdaq gained 212 pts or 1.4%, the Russell added 45 pts or 2% and the Transports rose 200 pts or 1.25%.
And then the clock ticked…both AMZN and AAPL reported ‘underwhelming’ results and disappointing forward guidance….both missed the estimates -which is really beyond me……I mean it almost doesn’t make sense to me….the way analysts release their estimates – all to make sure that they underestimate in order to give us those ‘better than expected’ results…..I mean think about it for one minute…..of all the earnings to miss – they miss on AMZN and AAPL? OK…. I’ll go with that – and this morning both those stocks are down…. AMZN down 4.5% while AAPL is down 3.5% in the pre-market session. And this is creating angst in the markets….
And the other thing that is causing angst in the markets is the idea that inflation is only getting worse causing bond yields to fall all while the FED is set to announce the start of tapering next week which will take support away from the markets….as investors ponder what will happen to interest rates….
OK – this morning….US futures are DOWN…..as the pundits put the blame squarely on AMZN and AAPL….and when you have this weakness then expect to have the media highlight more concerns ahead for investors and this will cast an overall negative tone to the markets today…the final day of trading in October….but unless they really ramp up the negatives – October will go down as a great month for the markets. The Dow rising 5.6%, the S&P up 6.7%, the Nasdaq up 6.9% while the Russell is up 3%.
The 10 yr. treasury is yielding 1.59% and oil is trading at $83.10/barrel.
We will get another handful of earnings and already we’ve heard from CVX, WY, AON, CL, CHTR, NWL, PSX.ABBV and LHX….and all beat the estimates….
Eco data includes Personal Income – exp (-0.3%), Personal spending of +0.6%, and the U of Mich Sentiment Survey of 71.4 while 1 yr. inflation is expected to run at +4.8% and five year is expected to run at 2.8%…. (Again, a number I think is useless)
European markets are all lower as well…. Inflation in the Eurozone rose to 4.1% in October hitting a 13 yr. high…. this after the ECB left interest rates and monetary policy unchanged. Christine Lagarde playing down the chances of a rate hike in 2022 – which also doesn’t appear to be realistic…but maybe she is also trying to control the reaction and the narrative no matter what the market is suggesting is going to happen. At 8 am – the European markets are all down about 0.5%.
Bitcoin is trading at $60k and Ethereum is trading at $4300.
The S&P ended the day at 4596- and if futures action is any indication…. you can expect a mild pullback as investors digest all the news from yesterday.
We remain in the 4400/4700 trading band.
Remember you can text the word INVEST to 21000 on your cell phone to get my digital business card. Feel free to download it and send me off an email or text. Happy to engage and talk markets, planning, thoughts, concerns, and ideas.
You can follow me on Twitter and TikTok @kennypolcari and on IG @kennyp1961.
You can also find my daily videos on my YouTube channel – Kennypolcarimedia – My URL address here: https://www.youtube.com/user/kennypolcarimedia
Take Good Care
Chief Market Strategist, Consultant
Stuffed Chicken Cutlets
Stuffed chicken is so versatile – as you can stuff it and roll it with anything you like, and it always comes out great. Today – try this one…
For this you will need: 8 Thin sliced Chicken Cutlets, 2 Cups Sautéed Spinach, Grated Pecorino Romano or Parmegiana Cheese, Thinly Sliced Pancetta, s&p, Olive Oil, Garlic, Peeled & sliced, Chicken Broth, Dry White Wine, Butter & Flour.
Sauté your fresh spinach in a bit of garlic and olive oil – seasoned lightly with s&p.
Lay the cutlets out flat on wax paper and lightly season with salt and pepper. Next divide the spinach amongst the eight cutlets, careful not to overstuff – leaving a little space along the sides. Now sprinkle a tbsp. of the cheese on top of the spinach on each of the cutlets.
Starting at one end, tightly roll the cutlets – now wrap the pancetta around the chicken pinch it tight a toothpick. If it is a big cutlet, you may need two pieces of Pancetta. (You can also choose to use cooking string to tie it up – but the toothpicks are easier.)
Now – In a large, heavy bottom skillet, add some olive oil over med high heat and add the sliced garlic. Sauté for about 3 mins – now add the chicken and brown on all sides, about 5 – 8 minutes.
Next – Add equal parts of chicken broth and wine and bring to a boil. (Usually, a cup of each will do for 8 cutlets).
Reduce the heat to a simmer, partly cover the skillet and cook for 15 minutes.
Now remove the chicken and bring the remaining wine mixture to a boil
Season with s&p, now add dollop of butter and maybe a tsp of flour and allow to thicken just a bit. (If it is not thickening – you can always add a bit more butter and flour) When thickened – add the chicken back to the sauce and coat well. To serve – Place the chicken on a platter and pour the sauce on top. Make sure to have a mixed green salad to accompany. If you want – you can add a side of garlic and herb flavored rice. No need for a veggie – it’s in the cutlet.