Earnings came in strong yesterday with most beating expectations. The most notable exception was IBM who beat earnings but missed on revenue. IBM stock is down over 2.5% premarket. Netflix also beat but lowered forecasts for new subscribers which sent their stock down around 1%.
Qualcomm (QCOM) stock jumped over 20% yesterday and is up another 5% this morning after they announced a settlement with Apple over technology infringements. Apple will switch to Qualcomm from Intel for their 5G technology. A few hours after the announcement, Intel announced they were getting out of the 5G modem business.
Earnings focus today include MS, PEP, AA, ABT, USB, BK, LVS, and TXT.
OPEC is holding their bi-annual meeting today. Economic data includes Trade @ 8:30am EST, Inventories @ 10:00am EST, Oil @ 10:30am EST, and the Fed’s Beige Book @ 2:00pm EST. The Fed’s Bullard speaks @ 12:45pm EST.
Volatility continues to contract as the bulls try to push higher. Volatility is most likely to increase to the downside. Reaction to earnings will set today’s tone. Like yesterday, Size bias is a divergent short going into the US session open.