A Case of the Mondays Before Big Thursday

An outlier red Monday morning open is shaking things up a bit for what has mostly been a one-way market for a while now, despite some quiet consolidations below the surface. As I write this, the senior indices are off by about 1% with the notable exception of tech outperforming--Perhaps it is a replay of February/March, where names like AMZN ZM are simply the obvious winners in a pandemic scenario to be sold off, even for a standard correction.

But we can say what more certainty that the coming week of earnings is, easily, the most significant one remaining in the year 2020, setting the tone beyond the election and monetary/fiscal policies into 2021. 

Thursday evening figures to be the main event, with many trillions of market cap reporting, by way of AAPL AMZN FB GOOGL (as well as CVNA SBUX TEAM). Of course, there are many other major earnings reports this week. But Thursday evening is going to be quite legendary, by any standard. 

As we have been noting with Members, at this juncture our focus is on guidance and the reaction by markets to the reports rather than the numbers themselves--We assume, given the rally since March, that blowout numbers are expected and delivered, for example. 

In the meantime, we have a case of the Mondays in front of Thursday. 

Separately, the DNKN buyout is wonderful news for firms which offer value and execute in this environment, yet are not trading at ridiculous valuations like some of the high-flying tech names.