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The Election is OVER. Here’s Your Next President…

Tuesday, November 8, 2016 9:27
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This post The Election is OVER. Here’s Your Next President… appeared first on Daily Reckoning.

It’s over.

Hillary will take the White House.

The writing is on the wall…

FBI Director James Comey gave up on the Hillary Clinton email scandal for the second time on Sunday night. The stock market celebrated by ripping higher. After enduring an eight-day slide, the S&P 500 jumped more than 2% by yesterday’s closing bell.

According to the markets, a Clinton victory is baked in the pie. Donald Trump and his rabble-rousing band of disaffected supports can go eat cake. The establishment is taking the wheel and driving the bus straight back to Washington.

But wait…

Is anything of this even true? Has the fat lady belted out the last note of this sordid election season? Jim Rickards doesn’t think so. Read his bold election night prediction here.

We’ll have to wait until late tonight to find out who’s right…

Meanwhile, the stock market believes every word of it. The herd has already crowned Hillary. They even threw her a big market rally in place of a victory parade.

Make no mistake—Trump has been nothing but trouble for the bulls. The stock market loves the status quo. And Trump’s tirades over fair trade, a rigged market and the Fed aren’t on the global elites’ list of approved talking points. So as Trump sinks in the polls once again, buyers come out of the woodwork.

Of course, the future is foggy no matter which candidate wins today. Will a Clinton presidency actually prove better for the economy than a Trump administration? That’s anyone’s guess. But right now it doesn’t matter. Raw emotion is taking control. So go the fickle markets…

Luckily, we have earnings season to help distract us from the political circus this week.

We’ve tortured you with enough political banter. Let’s set it aside for the day and dig into some raw earnings data…

As it turns out, folks are about as thrilled with earnings season as the names on their ballots. Investors are selling the news when it comes to this quarter’s earnings reports. Stocks that have reported have averaged a decline of 0.65% this season, according to Bespoke Investment Group. If these numbers hold, it will be the worst earnings season in nine quarters.

To celebrate, we’re breaking down three companies that laid an earnings egg this season. Check ‘em out:

1. A Rotten Apple?

Apple Inc. (NASDAQ:AAPL) is one of the big dogs. But the long-time tech and consumer favorite might finally be reaching its limit.

The company just posted its first annual revenue drop in 15 years. It looks like Apple needs something revolutionary to get everyone to jump on the mother ship again…

Something like the release of a new MacBook.

Unfortunately, the revamped MacBook has been poorly received so far—even from the loyal Apple fan base. Users are most miffed that the new MacBooks don’t even come with standard USB ports (Apple opted to transition to the new USB-C ports instead). The outrage has already prompted to Apple to cut the price of dongles by as much as half.

Apple’s days as a one of the market’s biggest innovators could be history. But for now, its stock price doesn’t look like it’s ready to fall off a cliff…

2. A Stock in Free-fall

GoPro Inc. (NASDAQ:GPRO) missed earnings estimates… again.

Revenue came in at $72 million– well below analyst expectations of $240 million for the quarter. That’s abysmal.

Expectations aside, GoPro just isn’t that innovative. GoPro is one of those companies that relies solely on the latest hot gadget to carry their profits. The company has shown some promising sparks with new product releases. But it has yet to wow consumers enough to create any kind of sustained growth.

We’ve tried to play short-term bounces in GoPro before. But it looks like the next leg lower for this stock has already begun. GPRO even managed to sink almost 5% during yesterday’s market melt-up. That ain’t exactly bullish…

gopro-11-8-dr

It appears GoPro’s summer rally won’t survive the winter. Wearables might be the next big catalyst for tech. But strapping a camera to your face just doesn’t seem to be wowing investors at the moment…

3. Bad drugs

While it’s already a bad time to be a drug manufacturer in light of recent pressures on drug pricing, Pfizer (NYSE:PFE) may be even worse off after releasing earnings.

The drug giant posted lackluster revenue. Earnings per share were down. And that’s the good news…

Along with earnings, Pfizer announced it will discontinue the development of its new cholesterol drug. The drug was in one of the final phases of testing before it would be released.

Management’s reasoning was that the “treatment landscape has changed”. This makes it sound like they’re either behind the curve or worried about lower profits due to pricing scandals in the drug market.

Either way, Pfizer has been dropping since August. Poor earnings and abandoned projects are only going to reinforce the downtrend…

Watch out for these landmines and other earnings disasters as we hit the final stretch of the season. The market’s punishing companies that can’t hit their numbers. Don’t get caught on the wrong side of a trade…

Sincerely,

Greg Guenthner
for The Daily Reckoning

P.S. Make money in ANY market — sign up for my Rude Awakening e-letter, for FREE, right here. Never miss another buy signal. Click here now to sign up for FREE.

The post The Election is OVER. Here’s Your Next President… appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.

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