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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