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Actionable news in INTC: Intel Corporation,

DeFAANG

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DOW + 85 = 21,796
SPX – 2 = 2475
NAS – 40 = 6382
RUT – 8 = 1433
10 Y + .03 = 2.31%
OIL + .08 = 49.12
GOLD – 1.50 = 1259.60
BITCOIN + 0.73% = 2717.16 USD
ETHEREUM – 0.07% = 204.20

The major stock indexes moved to all-time intraday highs, only the Dow held on for a record close. The Dow Jones transportation Average dropped to its lowest level in nearly two months, with UPS offering a weak outlook and FedEx (FDX) falling in tandem. Volume was heavy yesterday.

The Nasdaq Composite and the Nasdaq 100 or QQQ just fell off a cliff around midday. With a higher high and a lower low than Wednesday, we have an outside reversal, a strong bearish move – but it isn’t necessarily conclusive.

Tech has been leading the markets, and now the FAANG stocks have all reported earnings; so, it might be nothing more than buy the rumor, sell the news. A JPMorgan derivatives strategist thinks it might be more; claims low volatility has led to more leverage; recommends buying S&P 500 puts as a kind of portfolio insurance. For anybody old enough to remember 1987, portfolio insurance has nasty connotations.

A milestone was passed this week when one-month Treasury bill rates rose above 1 percent for the first time since 2008. That may not seem like much until you consider that the rate averaged a paltry 0.07 percent between 2008 and 2016.

With nearly half the S&P 500 having reported, second-quarter earnings are expected to have climbed 10.7 percent, compared to an 8-percent rise expected at the start of the month.

Amazon (AMZN) is the world’s biggest online retailer but they don’t earn much profit. Net income fell to $197 million, or 40 cents per share, in the second quarter, from $857 million, or $1.78 per share, a year earlier. Net sales rose 24.8 percent to $37.96 billion. Instead of booking profit, Amazon plows the money back into the business.

Amazon has stepped up spending to expand globally, to build warehouses and on new areas. The company also plans to create more than 130,000 full-time and part-time jobs by mid-2018 to speed up delivery. And they are in the process of buying Whole Foods Market (WFM).

Amazon Web Services public cloud generated $916 million in operating income on $4.10 billion in revenue in the second quarter of this year. The results and forecast show the world’s biggest online...


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