April 28, 2022, 5:56 pm EDT
Earnings could be powerful to bring the stock up significantly like Meta Platform Inc (FB) +18% today. But, poor earnings are also powerful to bring stocks to the basement. Here we talked about Amazon (AMZN) -12% down in the extended trading hours. Also, Apple Inc (AAPL) also fell by -4% in the after-hours trading.
Since both AMZN and AAPL are monsters in terms of their size: $1.5 billion and $2.7 billion market caps, most likely stock markets will be hit to go down in tomorrow’s trading. Here is a summary of earnings and performance for well-known names:
- Up: FB, MSFT
- Down: NFLX, GOOGL, AMZN, AAPL
Overall tone seems to be more bearish. There should be no surprise to see such a performance. 40 years of high inflation already sucked out lots of money from consumers through energy, food, and everything in between. Most people sense the tightness in their pockets. Deteriorating economic conditions threaten most people in the US. European countries also feared the development of wars. China is busy with COVID-19 lockdown on its ‘Zero-Case’ policy that shut down major cities Shenghao, Shenzhen, etc. What can we expect from the outcome of corporate earnings in general?
Although today’s market is up +614 points in Dow Jones, +2.5% in S&P 500, and +3% in Nasdaq, we see cloudy financial weather on the horizon. It would be better to have the mindset of a bear market in order to prepare for the worst, in our opinion.