The Final Tally: All Eyes on Amazon Earnings to Make or Break The Entire Market…

Well friends, after today, the S&P 500 is on a three-day heater. The index notched its third straight win while posting a 0.36% gain, the Nasdaq popped 0.5%, and the Dow did its best impression of a struggling boomer stock and dropped 125 points. Why the mixed bag? Because all eyes are on Amazon’s earnings (read: AWS) to determine whether or not the entire market gets to keep pretending AI is the second coming of Christ. 

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So basically, the anxiety is real AF in after-hours trading. But looking back, Alphabet just reminded everyone that even trillion-dollar juggernauts can bleed after its cloud division crapped the bed. That disappointment sent its stock down 3% and added another level of nail biting to what Amazon will put on the table. Meaning, if Amazon follows suit and drops weak cloud numbers, the tech sector is going to collectively implode, and every investor who bought the AI rally recently is going to be looking for the exit like a rat in a burning building.

Meanwhile, Honeywell decided that the best way to create shareholder value was to admit it’s too bloated to function and just break itself into three separate companies. If that playbook sounds familiar, it’s because GE already did the same thing, and now every other industrial conglomerate with an identity crisis is following suit. The result? Honeywell shares tumbled 5.64% on the day. 

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On the complete opposite end of the spectrum, Philip Morris just proved that selling addictions (see: Zyn), is still one of the most bulletproof business models in history. Shares ripped 11% higher after crushing earnings, because apparently, people just can’t quit nicotine, no matter how many laws, taxes, and moral grandstanding get thrown at them. The tobacco industry is basically a giant middle finger to every regulator who’s ever tried to shut it down.

And then, there’s Qualcomm and Arm, whom both dropped 3%, while Skyworks Solutions got annihilated (losing 24% in a single session). If you're looking for a reason, just know that the chip industry is basically a casino right now, with every company desperately trying to prove they're the next Nvidia while simultaneously getting their margins crushed by competition and supply chain fiasco’s. But hey, Softbank could care two craps. They’re about to blow $6.5 billion on a chip company I didn’t even know existed until today (read: Ampere Computing).

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At the end of the day though, none of this really matters until Amazon reports. Let’s just all hope and pray they come through, because if not—tomorrow’s Final Tally will be a legit reporting on a market bloodbath.  May the odds be ever in your favor, friends. Until next time! 

If you read all of this, congrats for having a 10 second attention span (better than me). As always, here’s our heatmap for today.

Stocks.News holds positions in General Electric, Amazon, and Google as mentioned in the article.