MSFT, META Supply Imbalance after Earnings Beats Lead NDX, SPX Lower...Utilities, Energy Lead Sectors Higher...

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Not all stocks went down today, just look at the numbers and symbols below.  In fact, in the DJI, 13 stocks rose on Thursday and only 12 rose on Wednesday.  However, there is no question that a small percentage of sellers were able to create a supply imbalance after earnings beats from MSFT and META and caused the price of these two mega-caps to fall and drag other mega-caps and the NDX and SPX indexes down with them.

MSFT -26.18, -6.05% on 53,970,981 shares traded. For MSFT to drop 6% the earnings must have been really bad, and a lot of the shareholders must have decided to sell?  So how did MSFT do?  They reported $3.30 vs. $3.10 earnings per share and $65.59 billion vs. $64.51 billion of revenue.  That’s 20 cents per share and $1,080,000,000 revenue more than the professional analysts were expecting.  Those 53.9 million shares that traded were less than ¾ of 1% of the 7.434 billion shares outstanding.  Revenue and earnings were better than expected and more than 99% of shares were held (not traded) and the stock dropped by over 6%?

META -24.22, -4.09% on 26,838,395, 1.06% of the 2.529 billion shares outstanding. Reported $6.03 vs. $5.25 earnings per share and $40.59 billion vs. $40.29 billion of revenue while more than 98.9% were not traded the stock dropped by over 4%.

As Buffett once cited “As they say in poker, if you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”

Can you believe that the efficient market hypothesis was developed in the 1960’s and some people still actually believe it?

After-hours: AMZN +11.031, +6.07% and AAPL -4.20, -1.86% both reported earnings and revenue beat in after-hours.

167 SPX Companies report EPS this week.

SPX companies reporting on Friday. 12 BMO: CAH, CBOE, CHD, CHTR, CVX, D, LYB, PPL, SPG, TROW, WAT, XOM. Saturday: BRK/B.

First day reaction: Q3, Thursday, (excludes Oct 22 and 23)

Positive: PAYC, ETR, IP, AME, GEN, MO, COP, NCLH, XEL, BMY, BKNG, CMCSA, GDDY, WTW, SO, AWK, PH, AMGN, CLX, GRMN, SW, FMC, TECH, DAY, IEX, VMC, ABBV, ZBH, VRSK, GPN, MLM, EQT, HUM, ITW, V, GOOGL, EA, GEHC, NI, ADP, SYK, CDNS, INCY, FFIV, LDOS, ZBRA, WM, WELL, GLW, RCL, BRO, CNP, ON, DECK, DLR, RMD COF, AON, WDC, CNC, LHX CINF, TSLA, MOH, WST, CBRE, POOL, RJF, TMUS, NOW, UPS, LRCX, TYL, LH, ALGN, LVS, FTI, NOC, NFLX, ISRG, SNA, TRV, BX, MTB, STLD, DFS, PPG, UAL, SYF, USB, PLD, JBHT, ABT, OMC, WBA, SCHW, PNC, JNJ, FAST, WFC, JPM, BLK, = 102

Neutral:  GWW, CI, SBUX, CTSH, GNRC, BWA, EQIX, K, WEC, MAA, CMS, MDLZ, OKE, EXC, EIX, HES, EXR, TEL, REG. MAS, MCD, ORLY, DTE, LKQ, DOW, PG, RF, MMC, KMI, STT, BAC, PGR, UNH = 33

Negative:  HII, EL, APTV, TFX, SMCI, MGM, IDXX, UBER, REGN, EBAY, BALL, XYL, EG, ICE, ACGL, MSFT CHRW, MET, INVH, DINO, EQR, AFL, IQV, META, KLAC, LIN, PRU, ETN, PWR, UDR, FRT, MA, MRK, PSA, ALL, VTR, KIM, QRVO, CDW, DVA, AMD, CZR, CMG, LLY, BXP, TT, FTV, KHC, OTIS, RSG, BG, CAT, FE, ESS, BIIB, CB, FSLR, SWK, F, DHI, PSX, AMT, PYPL, SBAC, MSCI, HUBB, PFE, SYY, ECL, MHK, UHS, HCA, HIG, PFG, CL, DOC, VRSN, DXCM, AJG, EW, WY, NEM, TER, CARR, ROL, TXT, IBM, TSCO, HAS, LUV, HON, KDP, VLTO, UNP, ALLE, DOV, AMP, GL, VLO, URI, SLB, AXP, FITB, ELV, CSX, TFC, CCI, EFX, HBAN, KEY, CFG, BK, DAL, DPZ = 114

Mega caps BRK/B, AAPL, GOOGL, TSLA, AMZN, META, NVDA, MSFT fell on Thursday.

SPY down 11.37 at 568.64, 60.1 million shares, above average volume,

VIX up 2.81 at 23.16

QQQ down 12.53 at 483.85

VZ, AMGN, DIS, NKE led the DJIA, 13 advancers, +1           

PAYC, ETR, IP, AME led the SPX, 133 advancers

XEL, BKNG, WBD, CMCSA led the NDX, 26 advancers

Up:   

Down:  DIA, IWM, SPY, QQQ,

The SPY MFC green line is pointed down at 65.7 and is defensive, -12.5.

Two of eleven sectors were higher on Thursday, led by XLU, XLE and XLP. 

Uptrend sectors:   XLF, XLC, XLI, XLK, XLU, XLB, XLY, XLRE, XLP, XLV,

Neutral sectors: XLE,

Down trend sectors:

The 6-month intermediate trend is up.  The ten-day trend is down.

3-month Intermediate Term Market Trend: Up a little

3-day Short Term Market Trend: Down

26 of 100 NDX stocks closed higher on Thursday.

39 NDX stocks are above their 30 DMA:  GILD, PAYX, DASH, TTD, ADSK, CSCO, BKNG, MAR, FAST, PCAR, ABNB, DDOG, TMUS, ADP, ILMN, MRVL, NVDA, LULU, TEAM, PANW, TTWO, MNST, EA, DXCM, ISRG, NFLX, SBUX, CMCSA, BKR, TSLA, GOOGL, ODFL, CDNS, SNPS, CHTR, VRSK, VRTX, WBD, XEL,

NDX Stocks to Watch on Friday:

Moving Above 30 DMA = 2

WBD, XEL,

Moving Below 30 DMA = 17

AAPL, ADI, AMZN, ANSS, ARM, AVGO, CRWD, CTAS, INTU, MDB, META, MSFT, MU, NXPI, ON, TXN, ZS,

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