SPX 3310.11 +39.08
In the night session, the Minis were +45 in the middle of the night, and then started to slide. At highs, it looks as if the SPX would open at 3320, and this was huge given the previous day's selling. Yet more fears of corona shut downs, Chicago announcing they are going to start closing restaurants, etc. slowly eroded at the gains.
By the open, the Minis were only +10 points higher. It was not a great bounce given the magnitude of the selling from the previous day. On the open, the Gross Domestic Product (GDP) number came out. We saw the second quarter results come out +33.1%, the largest number ever. Had we not been down -31.4% in the 1st quarter, this number would have been scary for being that good.
Despite these great numbers, the Minis immediately fell from +10 to -10 right on the open, but then bounced back into the green. Soon, the market saw the SPX and Minis higher by +20 where it levitated until Nancy Pelosi released a statement saying she still thinks a stimulus package can be reached before election day. Really? You have had 4 months with zero progress, and now comes a miracle?
Then at lunch time, more optimism about a stimulus deal and the big 3 (FB, AAPL, AMZN) earnings later in the day sent the SPX to the highs of +70.
This was not to be, and once again the markets started to give back gains. In the last few minutes, of trading concerns about earnings came as the price of the big 3 stocks started to slide. This took the SPX down to a net change of only +30 on the day.
After the close, AAPL, AMZN and FB reported earnings. Can you believe that in a recession where the country is in a lock down, and maybe going into another lock down, people are not buying the iPhone 12? Shocking as it is (lol), it makes sense that people are not going to upgrade a phone for $1000 in this environment.
After the close, the selling in AAPL, AMZN and FB took Minis down where they continue to sink.