T3 Live

Markets Rocked by FBI and Hillary Clinton


1) The Grinder
In contrast to the start of the week, which saw the market at resistance, today opened on, what has been, a month long support level.
Following yesterday’s session, the S&P 500 rebounded initially, with the help of industrial giant General Electric (GE) which closed up 2.06%, but ultimately ended the day down 0.32% as news of the FBI re-opening the investigation into the Hillary Clinton email scandal surfaced.
Despite the earnings miss from Amazon (AMZN) and Hillary news, the Nasdaqdodged a bullet overall, as Alphabet (GOOGL) was strong off its earnings beat and a rally in Facebook (FB), helping to offset the losses and only closing down, 0.44%.


The Nasdaq Biotech Index ETF (IBB) was weak, closing down, 1.82% and breaking the October 17 pivot low. The next support level is at the June 27 pivot low of $240.30.


Gold miners (GDX) ended the two slide, helped along by the newest Hillary email scandal, closing up, 0.38%.


2) GOOGL and AMZN Earnings


Yesterday, after the close, heavy weights Alphabet (GOOGL) and Amazon(AMZN) reported earnings.
Staying true to the neutral environment we have been in, GOOGL came in with a solid report while AMZN missed – resulting in, essentially, a wash as far as market direction is concerned.


Although AMZN earnings missed, it was mainly due to a an increase in operating expenses for future growth. Revenues, however, were up. AMZN is up 21.08% year-to-date despite closing down, 5.14%.


GOOGL came out swinging and beat expectations. Revenue jumped on strong mobile and video ads. It pushed to a new 52-week high of $839.00 before backing off a bit. Ultimately, GOOGL closed up, 0.27% today and is up 2.06% year-to-date.


Next week Facebook (FB) and Alibaba (BABA) will report.


3) Markets Rocked by FBI and Hillary Clinton


All was quiet, for the most part, until just after 1:30pm ET.


It was then that the FBI dropped a bombshell that it would be investigating additional emails that have come to light related to Hillary Clinton.


Prior to the news hitting, the S&P 500 was just drifting sideways, like so many other Friday afternoons. After the news, the SPY spiked lower, Gold (GLD) shot up, and the VIX surged higher, testing $17.00.


The U.S. Dollar also fell on the news.


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