Earnings Season in Full Swing | Flow Traders Investment Competition | Week 27

There was a lot of volatility, but little progress in the markets last week. The DJIA and S&P 500 both contracted 0,22% and 0,21% respectively. The NASDAQ did even worse and fell 0,34%. The VIX went up by 3,51%. Europe did the opposite and showed a lot of green at the end of the week. The AEX went up by 1,58% and Euro Stoxx 50 rose by 4,23%. Not bad.

The markets started the week off quite well, especially after Gilead reported promising results of their drug Remdesivir accelerating recovery from COVID-19. The rally couldn’t hold though, as stocks started falling again at the end of the week. 

Earnings are still in full swing. Amazon was one of the companies to report last week. The company beat estimates on revenue but failed to match earnings estimates. The stock immediately dropped on the news. Facebook, Mastercard and Microsoft all reported impressive numbers and rose after the news. Tesla reported increasing revenues and showed a positive bottom line. The stock immediately rallied on the news, but not for long. On Friday, Elon Musk started a tantrum on Twitter, just like old times. It started with “Tesla stock price is too high imo”, which immediately caused a 10% drop in the Tesla stock price. Musk went on by tweeting about ‘freeing America’ and ‘selling all of his possessions’. The tweets haven’t been deleted yet and there is still no comment from the man himself, so nobody really knows what’s going on. It is not the first time that Musk misbehaves on Twitter, however, and it’s most certainly not the first time his tweet influenced the Tesla stock price. Musk has had trouble with the SEC about it before, which might happen again this time.

 This week there will be a lot more earnings, with large companies like Walt Disney, Beyond Meat, Activision Blizzard and Electronic Arts kicking off tomorrow. Shopify, Paypal, UBER will also report this week, so keep an eye out.

Now let’s take a look at what effect these earnings reports had on the Flow Traders Investment Competition! The first two places are unchanged from last week, but we see Omega Investments moving into third place, knocking Phoenix back one spot. Merx and DHANDO Investors both up 8 spots, more than any other group. DHANDO Investors also had the highest return last week, 4.28%. Legio Aerarii’s week was less profitable. They lost the most places, moving down 9 spots to 34th, and had the highest loss, 3.27%. 

Robert Foppen