Your Wednesday Blip 1/27/21

Your Wednesday Blip 1/27/21

After yesterday’s downside reversal markets saw continued selling action which sent the Dow to its biggest loss of the year with a 634 point decline on heavy trading volume to close at 30,303. What sparked the selloff was the Federal Reserve citing recent economic deterioration as the pandemic rages on. Volatility is also on the rise thanks in part due to the battle between the reddit crowd hammering short sellers.
Microsoft reported strong earnings as Azure Cloud revenue jumped 50% and propelled overall revenue higher by 17% while net profits grew 34%. Both top and bottom lines beat estimates by a wide margin and forward guidance was also increase by more than expected. The sell side gurus increased their target price levels and shares surged. It was as close to a perfect earnings report as you can expect.
Starbucks also reported earnings and the results came in with a 5% revenue decline which missed guru estimates and a 23% drop in net income which came in better than expected. Shares traded lower however as comp store sales slide 5% and operating margins declined from 18.2% to 15.5%.. Active membership in Starbuck’s rewards program grew 15%.
Shares of Boeing fell back below the $200 level after the company posted a 15% drop in revenue and another jumbo loss. The total loss for 2020 was an astounding $12 billion. CEO Dave Calhoun said the company had delivered 40 737 Max jets from its stored inventory which currently stands at about 450 aircraft. The company also made the decision to delay the launch of the 777X to late 2023 due to tighter certification requirements.