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PreMarket Prep Recap: Amazon's Huge Q4 Beat Can't Save The Markets

The theme of Friday's PreMarket Prep Show was this is a "different kind of market."

Benzinga · 01/31/2020 20:11

The theme of Friday's PreMarket Prep Show was this is a "different kind of market."

With one of the top components of the S&P 500 index, blowing away its fourth-quarter numbers and making a new all-time high, the index was still in the red during pre-market trading. The index has failed to clear last Friday's close (3,293.50).

Amazon Makes New All-Time High

After the close on Thursday, Amazon.com, Inc. (NASDAQ: AMZN) posted a gigantic EPS beat of $2.44 along with a revenue beat of $1.47 billion. Within minutes the issue rallied over $250 from Thursday's closing price ($1,870.68) all the way to $2,133.74 before sellers engulfed the issue.

For those market participants that are long that are considering shorting the issue were alerted to the issues former all-time high ($2,050.50) that was made in September of 2018. After opening just above that key level, it rallied to $2,055.72 and reversed course. In a volatile trading it declined to $2,020.27 and is attempting to rebound.

IBM Rallies Off Changes In The C-Suite

After the close on Thursday, IBM (NYSE: IBM) announced CEO Virginia Rometty was stepping down as President and CEO. The Street showed its approval of the change and the issue rallied sharply in after-hours trading. The initial buying spree took the issue from Thursday's close ($136.77) all the way to $143.92.

Since the issue had given back off its gains after rallying to $145.79 after its fourth-quarter beat and retreating to $134.97 on Thursday, the co-hosts of show suggested investors may be looking to sell into the rally.

Also, it was noted that the put in a pair of highs at the $144 area on the two days after putting in its earnings day high.

What A Beatdown In WWE

After the close on Thursday, World Wrestling Entertainment (NYSE: WWE) ousted its co-presidents and lowered earnings expectations. In the after-hours bloodbath, the issue swooned from Thursday's close ($62.30) and ended the session at $47.76.

The unabashed selling continued in the pre-market session falling to a low of $45.11. The author of this article noted from the pre-market chart that there appeared to be a patient buyer between $45 and $46 area and issue may bounce off the open.

After opening at the pre-market low, it fell only another $.19 to $45.11 and managed to rally to $51.33, but has now fallen back under $50.

A View From The Floor With Jonathan Corpina

Midway through the show, Jonathan Corpina, Managing Partner at Meridian Equity Partners joined the show from the floor of the New York Exchange. He expressed concern over the coronavirus outbreak, but at this time was taking a "wait and see" approach to the markets.

At 8:35 a.m. EST on Monday's show, Sean Udall, CIO of Quantum Trading Strategies will bring fundamental and technical expertise to the show.