As bad as the month of January was for the global economy, the truth is that the rest of 2016 promises to be much worse.
If there were any concerns that retailers and other vendors of goods and services are hunkering down on their ad spending, those fears can be safely swept under the rug because just days after Facebook's dramatic beat, moments ago GOOG likewise slammed expectations by beating massively both on the top and bottom line.
Dow futures are down 100 points and Chinese stocks are pressing new 14-month lows, extending last night's carnage after Chinese Industrial Profits tumbled. With a dismal 4.7% drop year-over-year, led by a near 60% collapse in the mining industry, early strength (after some jawboning from Abe) gave way to fresh lows and US equity futures are also responding. Offshore Yuan refuses to drop since Xinhua wrote a 3rd hit piece against George Soros and his "speculative snap profits."
Expectations were hardly sky high for AAPL heading into a quarter in which most of its suppliers had already announced iPhone sales would be disappointing, and moments ago AAPL validated many of these concerns when while beating on the bottom line, with an EPS of $3.28 compared to expectations of a $3.22 print, it missed not only on the top line, with revenue coming shy of the $76.5 billion expected at $75.9 billion, but across every single product line, most notably iPhones, of which AAPL sold 74.78 million in the quarter, below the 75 million expected.
Considering the stock is up about 10% in the after hours, the Netflix story remains intact. What was the cost of keeping the last FANG momentum "story" alive? A record $276 million in cash burn in the quarter.
Who could have seen this coming? Week after the CEO ordered his mega-yacht and 6 months after Jim Cramer said "it was going higher," GoPro has just slashed Q4 revenue guidance by 15% (from $510.9mm to $435mm) and has addtionally decided to layoff 7% of the workforce. For now, GPRO is halted... but Ambarella is not (and is collapsing 6% after hours) leaving them down 65-80% since Cramer said "buy buy buy."
Everything is not awesome. We have three small words for all those MLP-holders: "Paid to wait."
"Devastated" Trader Crushed By Soaring Biotech, Starts Online Begging Campaign To Fund $106,000 Margin CallSubmitted by Tyler Durden on 11/19/2015 16:21 -0500
"I hesitated on doing this but I literally owe Etrade $106,445.56 as of this moment what would you do if you were in my situation?"
If there were any questions if the US consumer was merely "strong" or "quite strong", after the abysmal results from Macy's first, and moments ago, Nordstrom, they should all be safely swept away now.
FaceBook Hits All Time High After Beating Across The Board; Over 1BN Daily Users: The Quarter In ChartsSubmitted by Tyler Durden on 11/04/2015 16:28 -0500
Today's most anticipated earnings report was Facebook, and moments ago the social network reported Q3 results which confirmed that while the American middle class is increasingly unable to find work, it has a lot of free time to spend on their Facebook account. Here is how it did.
Just when you (and Bill Ackman) thought the worst was over, an avalanche of insurers and pharmacies are dumping Valeant's Philidor and raising more questions about its activities. VRX is now down 16% on the day, back below the key $100 level (after touching $127 intraday).
In a day in which the walking dead were on the verge of going green (Twitter nearly wiped out its entire loss following last night's earnings), there was some hope that momo stocks would finally make a come back. Alas, for the company which we first dubbed "camera on a stick" it was just not meant to be.