dChan
Anonymous ID: db1509 April 16, 2019, 1:16 p.m. No.6201696   🗄️.is đź”—kun   >>1738

Mktfag Wrap-up

(plus some headline's that affected it-especially the Apple/Qualcomm one)

Stocks Near Record Highs As Economic Data Dumps To 21-Month Lows

US equity markets are within an algo's angry inch of record highs - which must mean everything is awesome, right?

 

There's just one thing… US Economic Data surprises are at their weakest since July 2017 and are currently at the worst of all the world's majors.

We've seen this before.

and one more thing… earnings expectations aren't buying the bounce either.

(cap#3)

And one more thing - Volume is notably (negatively) diverging from price action in this latest surge for the highs.

(yaaaay they finally are mentioning this)

So what's lifting stocks? Simple - the central banks.

US markets were less exuberant that Europe and China but managed gains again. AAPL's weakness dragged the market briefly red in the last 30 mins, but as always it bounced… Nasdaq best on the day, S&P managed very modest gains.

Big sell program hit at 330ET.

(can see that towards the close on cap #2)

Semis soared to a new record high after the QCOM-AAPL settlement.

Gold was clubbed like a baby seal into the London Fix (once again).

Winter is coming.

 

Qualcomm Soars After Agreeing To Settle All Litigation With Apple

Qualcomm stock has exploded over 13% higher, jumping to $65 per share and adding over $7 billion in market cap almost instantly, following a report from CNBC's David Faber, since confirmed by the company, that the years-long, and often heated litigation between Qualcomm and Apple has been settled in the form of a "payment" from Apple to Qualcomm, resulting in a six-year license agreement,(including a two-year option to extend, and a multiyear chipset supply agreement).

While QCOM stock soared, AAPL stock dipped modestly lower although it has since rebounded back in the green.

The sharp spike in QCOM stock helped move the entire market higher, just as the S&P was once again threatening to dip in the red, pushed by tech names in general, and the semiconductor space in particular as the SOX, Semiconductor Index jumped 2.6% to a new record high.

https://www.zerohedge.com/news/2019-04-16/qualcomm-soars-after-agreeing-settle-all-litigation-apple

 

Bank of America posts record earnings, but shares drop on growth fears

 

Bank of America (BAC) on Tuesday reported record first-quarter earnings that blew away market expectations, led by a surge in consumer loans and deposit activity.

Following a day of disappointing results from other big banks, the consumer and investment-banking giant posted record earnings per share of 70 cents, compared to 62 cents in the comparable year-ago quarter.

BofA saw revenue of $23 billion, versus the prior year-ago period’s $23.1 billion. Analysts, on average, expected the bank to report 66 cents on $23.1 billion of revenue, according to Bloomberg.

 

“Economic growth and consumer activity in the U.S. continue to be solid, businesses of every size are borrowing and driving the economy, and asset quality is strong,” CEO Brian Moynihan said in a statement.

 

However, the company’s stock, traded on the New York Stock Exchange, opened around 2% lower around $29 per share. On the earnings call, BofA’s CFO warned on slowing loan growth this year, raising concerns about whether the company’s blockbuster growth was sustainable.

https://finance.yahoo.com/news/bank-of-america-reports-q1-earnings-104858160.html

https://www.zerohedge.com/news/2019-04-16/stocks-surge-near-record-highs-economic-data-dumps-21-month-lows