Earnings reports had the Street on their toes this week. Major players such as Alibaba ($BABA), Lockheed Martin ($LMT), and Johnson and Johnson ($JNJ) all brought surprises. Most notably, Alibaba, the Chinese online retailer, blew away analyst estimates with their report of $1.09 per share versus the consensus estimate of $0.85. A 28.2% surprise led to a major bump in share price upon market open on Tuesday. Other big surprises came from Progressive Corp ($PGR), when they reported $0.62 per share versus the consensus estimate of $0.51, and Blackstone Group LP ($BX) coming in at $0.68 versus the $0.63 consensus. Of the ten companies covered in my recent article, ‘Portfolio Update: Market Madness’, eight reported a surprise earnings to the upside. That list includes: $LMT, $JNJ, $BABA, $BA, $PGR, $BX, $ABBV, and $GD. The two companies to fall short, although not by a large margin, were pharmaceutical company Bristol-Meyers Squibb Co, and American biotech giant Celgene Corp.
While I did not play all of the aforementioned earnings in my trading account for the Market Madness Challenge, I still had a phenomenal week. After week one of the challenge, as seen below, I managed to accrue $3,709.01 in total profits (a weekly return of 7.4%).
I am currently holding a position in one of my favorite swing trades as of late, Advanced Micro Devices ($AMD). This week, be on the lookout for more major players reporting earnings such as: Apple Inc ($AAPL), Advanced Micro Devices ($AMD), Exxon Mobile Corp ($XOM), Mastercard Inc ($MA), Pfizer Inc ($PFE), Under Armour ($UA), and last but certainly not least, Amazon ($AMZN). I expect all of the aforementioned companies to meet or surpass earnings, with the exception of Under Armour and Exxon Mobile Corp.
Stay tuned for upcoming market recaps as well as a portfolio update, hopefully by the end of the week. Thanks for reading!