Oil Prices, Earnings Highlight Hectic Week

Several Dow names made big moves this week

by Patrick Martin

Published on Apr 26, 2019 at 1:18 PM

Earnings season is a roller coaster, and this week was no different. Wall Street saw the S&P 500 and Nasdaq nab record closes, only to take a breather later in the week, although this could signal low volatility ahead. In addition to corporate earnings, traders kept an eye on oil prices and digested better-than-expected gross domestic product (GDP) growth. While the SPX and Nasdaq are pacing for weekly wins, the Dow is unlikely to join them in the black for the week.

Microsoft, Visa Among Big Blue-Chip Winners

A host of blue chips took their turn in the earnings confessional this week. Options bulls stuck with embattled Boeing (BA) before its event, Microsoft (MSFT) roared to a record high after an earnings beat, and Visa (V) reported a top-line beat as well. And while Disney (DIS) didn't report earnings, it raced to a record high behind the buzz from blockbuster "Avengers: Endgame."

On the other hand, consumer products giant 3M (MMM) tanked after earnings. Intel (INTC) was another earnings loser, sending chip stocks lower on a dismal 2019 forecast.

More Earnings Winners and Losers

Looking at FAANG names, Facebook (FB) was showered with bull notes after a first-quarter profit beat, and options bulls blasted Amazon.com's (AMZN) upbeat report. And while Alphabet (GOOGL) reports next week, there's an unusual setup going on in its options pits.

Sticking with the earnings theme, there were several other notable winners and losers this week. Hasbro (HAS) roared to its best day in years after a surprise profit beat. Analysts piled on eBay (EBAY) after its blowout report, while GrubHub (GRUB) stayed red-hot even amid an oversaturated market. Tesla (TSLA) fell to two-year lows after its quarterly report. 

Energy Sector in Focus

Over in the energy sector, Occidental Petroleum (OXY) raised eyebrows after outbidding Chevron (CVX) for Anadarko Petroleum (APC). And amid streaking oil prices, options bulls blasted this energy-focused exchange-traded fund (ETF). However, oil prices cooled off on Friday, after President Donald Trump said he asked the Organization of the Petroleum Exporting Countries (OPEC) to temper fuel costs. Negative earnings reactions from CVX and Exxon Mobil (XOM) didn't help.

More FAANG Action Ahead; Buy the Dip on These Biotechs

Next week, earnings season will continue to dominate headlines, with FAANG names Apple (AAPL) and Google parent Alphabet set to report. Meanwhile, analysts say buy the dip on this pair of biotech stocks ahead of earnings next week. Outside of earnings, Wall Street awaits the latest Fed decision, due next week.


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