Long end Bid, Nasdaq Weak?

TSLA, NFLX, BONDS and the MEGA8s

Alright Magnelibra readers, let’s start things off with today’s late day earnings where we saw Netflix and Tesla both release their data.

NFLX Results via Zhedge:

• EPS $3.29, beating estimates of $2.86, and above the $3.20 a year ago

• Revenue $8.19 billion, +2.7% y/y, missing estimates of $8.3 billion

• Streaming paid net change +5.89 million vs. -970,000 y/y, smashing estimates of +2.07 million

• Streaming paid memberships 238.4 million, +8% y/y, beating estimate 234.5 million

• Operating margin 22.3% vs. 19.8% y/y, beating estimate 19.1%

• Operating income $1.83 billion, +16% y/y, beating estimate $1.58 billion

• Free cash flow $1.34 billion vs. $13 million y/y, beating estimate $542.3 million

Despite all of this, the stock is - 8.29% in after hours trading (via Marketwatch)

As far as Tesla,

• *TESLA 2Q REV. $24.9B, EST. $24.51B

• *TESLA 2Q ADJ EPS 91C, EST. 81C

  This is new record revenue for Tesla however FCF was well below estimates,

• *TESLA 2Q FREE CASH FLOW $1.01B, EST. $2.18B

Tesla is down -4.19% in after hours trading ( Via Marketwatch)

When we look at the TESLA longer term chart, we have to say that it looks heavy technically and despite the record revenues, we suspect sellers to profit take here and take some chips off the table:

We also wanted to look at the SP500 vs Nasdaq index spread as the Nasdaq has trampled all over the SP this year, are we at a turning point?

Another equity we want to keep an eye on is JPM Chase, this equity has had trouble holding this $151 area before and we would think any longs would vacate this trade on a settle below that number, so this is another one to keep a close eye on: