Market Analysis (28 April’21)

Major U.S. stock indexes were little changed Wednesday after the Federal Reserve said it would stick to the loose monetary policy that has underpinned the market’s rally in recent months.

Tech Earnings

AAPL and FB reported their earnings in after hours. Both companies delivered stellar results.

Apple

Apple Q2 earnings per share came at $1.40 vs. $0.99 estimate; Q2 Revenues were reported at $89.6B vs. $77.36B estimate (iPhone, services, Mac, iPad revenues also beat estimates). As a result, the stock price jumped in after hours.

AAPL, 5m

Facebook

Facebook delivered stellar results as well. Huge top line ($26.2 billion sales vs. $23.7 billion estimate) and bottom line ($3.30 EPS vs. $2.37 estimate) beats from Facebook with revenues up 48% over the prior year, its highest growth rate since 2018. FB stock price was also up in after hours.

FB, 5m

Big Speculative Bets on AAPL

A lot of speculative calls were bought today on AAPL several hours before the market close via May 7 weekly calls. The largest lot of 10188 calls was bought on the $145 strike where the speculator paid almost $0.5m for calls that will expire worthless if AAPL doesn’t land above $145 during the next several sessions.

AAPL, Options Time and Sales

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