The trend is your friend until it bends. Cliches exist for a reason and the current bull run is just one example as to why. A day after coronavirus fears swept across the market, investors saw more record highs in the stock market today.
That came from both the SPDR S&P 500 ETF (NYSEARCA:SPY) and the PowerShares QQQ ETF (NASDAQ:QQQ). The trend will eventually break, but for now, bulls keep on powering the markets higher.
Movers in the Stock Market Today
A day after spiking on optimism that Starbucks (NASDAQ:SBUX) is looking to add plant-based options to its menu, Beyond Meat (NASDAQ:BYND) sank 5.3% Wednesday. That comes on reports that Burger King is looking to cut prices on its Impossible Burger amid softening demand.
Tesla (NASDAQ:TSLA) remains on fire, although shares have pulled back well off the highs from Thursday. From Friday’s close to Wednesday’s high (remember, no trading on Monday), Tesla shares ran 16.5%. The automaker garnered more headlines in the stock market today as it now sports a $100 billion market capitalization.
That’s roughly four times as large as Fiat (NYSE:FCAU), more than Ford (NYSE:F) and General Motors (NYSE:GM) combined and now more than Volkswagen (OTCMKTS:VLKAF, OTCMKTS:VWAGY). However, Tesla stock would have to rally much further to achieve the $200 billion market cap commanded by Toyota (NYSE:TM).
While analysts are pretty bulled up on current iPhone demand ahead of the coming 5G model, Apple (NASDAQ:AAPL) is reportedly planning a new low-cost iPhone. The unveiling may come as soon as March, and is the first new low-cost iPhone since the iPhone SE. It will reportedly resemble the iPhone 8, with Touch ID and a 4.7-inch screen. The thought is that it will help Apple compete better in lower-price markets.
PG&E (NYSE:PCG) shares sank over 5% on Thursday. The fall comes on a report of various outcomes for its business. One includes a takeover by California state. Another includes burying all of its lines, which could cost over $200 billion.
HP (NYSE:HPQ) and Xerox (NYSE:XRX) aren’t exactly taking the traditional path to M&A. Remember, the latter tried to buy the former, despite HP being more than four times the size of Xerox? In recent weeks, Xerox has acquired a small stake in the company, allowing it to nominate directors for election. Well, it may nominate 11 new directors, as it continues to push for its $22-a-share takeover.
HPQ stock trades just below that level now.
Earnings Roundup
On Tuesday ahead of earnings, Johnson & Johnson (NYSE:JNJ) hit new 52-week highs. While earnings jumped 34% year-over-year to $1.88 per share and beat estimates by a penny, revenue of $20.75 billion did miss estimates of $20.8 billion and grew just 1.8% year-over-year.
Shares retreated at the open, but only closed lower by less than 1%.
International Business Machines (NYSE:IBM) shares are rallying — yes, rallying — after reporting better-than-expected fourth-quarter earnings. Profit of $4.71 per share beat estimates by 3 cents per share, while revenue actually grew 0.1% to $21.8 billion. It feels like a bit of a relief rally for the company, which used its Red Hat acquisition to fuel a boost in sentiment.
IBM rose 3.4% in the stock market today.
Netflix (NASDAQ:NFLX) shares aren’t reacting quite as favorably, falling almost 4%. Sales grew 30.5% and beat estimates, along with earnings. International subscriber growth of 8.8 million beat consensus estimates of 7.65 million and management’s prior guidance of 7.6 million. However, North American subscriber growth of just 550,000 came up short of Wall Street and management’s expectations of 611,000 and 589,000, respectively.
Up next? American Airlines (NASDAQ:AAL), Comcast (NASDAQ:CMCSA) and Procter & Gamble (NYSE:PG) will report Thursday morning. E*Trade (NASDAQ:ETFC), Freeport-McMoRan (NYSE:FCX) and Intel (NASDAQ:INTC) will report earnings Thursday after the close.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and SBUX.