Earnings, earnings, earnings. From members of the Magnificent 7: Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META) and Apple (AAPL). in the consumer sector from consumer stocks Starbucks (SBUX), McDonald’s (MCD), Mastercard (MA).From drug companies Pfizer (PFE), Moderna (MRNA) and Merck (MRK). And from Big Oil Chevron (CVX), ExxonMobil (XOM), Shell (SHEL), and BP (BP). Here’s what I’d watch for.
Of course, there’s nothing even vaguely normal about a day when a stock falls 43% and takes much of the market with it.Snap’s (SNAP) plunge did take some surprising candidates along for the ride. Tesla (TSLA) dropped 6.93% on yet more bad news on production in its Shanghai factory. Disney (DIS) fell 4.01% just because. SentinelOne (S) was lower by 8.11% since everyone knows that cybersecurity stocks are just a fad.
But on balance, on the green side (and yes, there was a green side to the market) the market did what markets are supposed to do in the face of bad news and an increase in fear.
I can’t find Big Pharma stock in the green during Friday’s big rally. Which makes me question the staying power of Friday’s move. If the day’s gains were the result of a market bottom, wouldn’t everything be up? Even the very defensive drug stocks? Not as much as the tech losers of 2022 but still if the market had bottomed I’d expect these stocks to be in the green too. More evidence, I think, for my thesis that Friday was the result of technical trading in an over-sold market.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My sixty-ninth YouTube video “Trend of the Week Big Pharma for Safety” went up today.
President Donald Trump speech last week on drug prices, what he billed as “the most sweeping action in history to lower the price of prescription drugs for the American people,” didn’t deliver any of the ghosts and goblins that drug makers feared. Drug stocks by and large climbed on the proposals. Which turns stocks in the drug sector into one of the most interesting places to stash money for the next six months for investors looking for decent upside and above average safety.
