The View at Two – 13 October 2020

Let the Games Begin… There’s something for everyone today, with the earnings kickoff presenting a range of reactions, Apple (AAPL -3.4%) in the midst of presenting its latest iPhones (just taken a big leg lower), and Amazon (AMZN -0.4%) flexing its muscle through its Prime Day sale. Not to mention stimulus headlines, vaccine news, a Supreme Court nomination hearing, and the election only 3 weeks away (plus the rare sight of NFL football on a Tuesday set for tonight). While facing a whirlwind of information, indices appear much more subdued on the surface vs yesterday’s helium-like rise. The S&P has been modestly lower throughout the day, and the Nasdaq moving between positive and negative territories, with expectations tempering from McConnell and Pelosi after the EU close weighing a bit. Banks are the worst performing group: at Citi (C -4.4%) and JP Morgan (JPM -1.7%) initially garnered a positive initial reaction to solid beats on Investment Bank revs and lighter than expected credit loss provisions, but both banks warning of a slow road to economic recovery dampened the reception. It could be worse though, just ask struggling airlines which are dragging on Transports after Delta’s (DAL -2.1%) results disappointed and it delayed $5bn in aircraft deliveries. Cap Goods are lower too as Fastenal (FAST -4.1%) saw sales growth slow as demand for safety supplies dwindled. Blackrock (BLK +4.2%) fared better as AuM swelled to a record (though Financials as a group are lower) and Johnson&Johnson (JNJ -2.5%) saw its beat and raise overshadowed by the pause to its vaccine trial. Amazon has kept Retail buoyed in the green (at least before just now rolling over with Apple), as has Disney (DIS +3.8%) for Media after announcing a restructuring to shift more focus to its streaming business. So that’s the long version of what’s driving markets today, but…