Indexes Hold Near Highs Despite Coronavirus Uncertainty | Summary and Q&A

TL;DR

Major indexes hold near highs despite concerns over the coronavirus, while Mercado Libre, Alteryx, and Paycom show strong post-earnings reactions.

Key Insights

• 😘 The stock market remains resilient despite concerns over the coronavirus, thanks to strong corporate earnings, low interest rates, and a focus on the US economy.
• 🌎 Mercado Libre's strong post-earnings performance shows the market's confidence in its expanding online commerce platforms in Latin America.
• 💝 Alteryx's breakout from a late-stage base highlights the demand for data analytics in the enterprise software segment.
• 🧍 Paycom Software's recovery after a weak post-earnings reaction indicates the company's long-standing leadership in the sector and the market's optimism for its future growth.
• ❓ The solid performance of various software stocks reinforces the overall positive sentiment in the stock market.
• 🤘 Monitoring signs of institutional selling and growth stocks is important to gauge market trends and potential pullbacks.
• ❓ The stock market will have a shortened week of trading due to the Presidents Day holiday, but investors can still participate in webinars and stay updated on market perspectives.

Transcript

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Questions & Answers

Q: How are the major indexes performing despite concerns over the coronavirus?

The major indexes, such as the Nasdaq and S&P 500, have remained resilient and held near their highs. This is due to a strong corporate earnings environment, low interest rates, and a focus on the US economy.

Q: What were the post-earnings reactions of Mercado Libre, Alteryx, and Paycom?

Mercado Libre initially had a negative reaction but quickly recovered, showing a 14% gain for the week. Alteryx had a strong post-earnings breakout from a late-stage base, while Paycom had a weak initial reaction but managed to test support at the 10-week moving average.

Q: What is Mercado Libre's business model and performance?

Mercado Libre operates online commerce platforms in Latin America, similar to Amazon. Despite bleeding red ink currently, the company showed impressive sales growth in the latest quarter, with a 58% increase to about $674 million.

Q: What is driving the strong post-earnings reaction for Alteryx?

Alteryx is a data analytics company and part of the fast-growing segment of enterprise software. It has delivered strong earnings and continues to show accelerating growth on both the top and bottom lines.

Q: How did Paycom Software recover after a weak initial post-earnings reaction?

Paycom initially had a weak reaction due to weak revenue guidance, resulting in an 8% decline for the week. However, the stock had a solid recovery, testing support at the 10-week moving average and finishing the week with a 7% gain.

Summary & Key Takeaways

• The major indexes, including the Nasdaq and S&P 500, held near their highs despite concerns over the coronavirus and remained resilient thanks to a strong corporate earnings environment, low interest rates, and a focus on the US economy.

• Mercado Libre initially had a negative post-earnings reaction but quickly recovered, closing the week with a 14% gain. The company, similar to Amazon, operates online commerce platforms in Latin America and showed impressive sales growth.

• Alteryx, a data analytics company, saw a strong post-earnings reaction with a breakout from a late-stage base. It continues to show accelerating growth on both the top and bottom lines.

• Paycom Software had a weak initial post-earnings reaction due to weak revenue guidance. However, the stock showed a solid recovery and finished the week with a 7% gain, testing support at the 10-week moving average.