Friends

We had a winner and a loser from yesterday’s earnings releases. Meta (Facebook) was today’s winner while Microsoft was today’s loser. Meta’s report wasn’t that great, but market participants rewarded the message. Microsoft’s earnings report wasn’t that bad, but market participants decided it wasn’t good enough. That’s why we always find it so interesting during earnings season to see how stocks react to earnings releases. Were they priced correctly? Oh, and my bad, Apple reports today after the close. It had been listed to release earnings on the 28^th of January, but it changed to the 29^th. Which direction will Apple shares head after the release?

As for the market averages, by the close the Dow Jones Industrial Average was up 55 points to finish the day at 49,071. The S&P 500 was down 9 points to close at 6,969. The Nasdaq Composite Index was down 172 points to close at 23,685. Gold was up $56 to trade at $5,360 per ounce, while oil was up $2.48 to trade at $65.69 per barrel WTI.

These wild swings are interesting but not really surprising. We’ve known that many individual stocks are trading at hefty multiples. If earnings don’t blow the street away, share prices are going to go down. It doesn’t necessarily mean there is anything wrong with the company, just the price of its shares. Let’s see how the week finishes out tomorrow.

Have a nice evening everyone.