Wall Street Breakfast July 18: What Moved Markets This Week

What Moved Markets This Week (WMMTW) is a panel discussion with Seeking Alpha editors. Watch video highlights of this episode on Seeking Alpha.Hosted by Nathaniel E. Baker, Contributing Editor, and featuring:Aaron Task, VP Contributor Content and co-host Seeking Alpha's Alpha Trader podcast;Brad Olesen, VP News;Stephen Alpher, Managing Editor News, co-host Alpha Trader.Big Picture (0:52)The "risk on" appetite from Monday faded even as many banks beat estimates with their second quarter earnings. Shares of large-cap technology companies fell, with the NASDAQ (QQQ) underperforming other indexes for the first time in months. The catalyst appears to have been an announcement by California on Tuesday to rollback reopenings due to a surge in new coronavirus cases.Winners and Losers (3:25)High-multiple tech names led the selloff. Salesforce.com (CRM) was a big loser, along with Paycom (PAYC), Fortinet (FTNT), Adobe (ADBE), and Paypal (PYPL). Smallcaps gained, with the iShares Russell 2000 ETF (IWM) outpacing the S&P 500.Financials performed well on the back of bank earnings (6:33), with the SPDR S&P Bank Index ETF (KBE) adding 9%. Goldman Sachs (GS), JPMorgan Chase (JPM), and Morgan Stanley (MS) rallied after positive earnings reports. Morgan Stanley moved into positive territory for the year off of the rally.But not all banks did well. Wells Fargo (WFC) announced it would cut its dividend by 80% and build up loss reserves. But WFC shares were still up 5% this week after an upgrade from Evercore ISI.Some of Our Favorite Coverage This Week (10:02)Brad: Tesla (TSLA) coverage, especially "Musk: 'Wow' on Tesla's price target boost from Piper";Stephen and Nat: A Vaccine Is Coming: Time To Sell Tech Stocks At Bubble Valuations, And Buy Recovery/Value Names, by Thomas Lott;Aaron: The Coming Stock Market Crash - Smart Money Is Already Ringing The Death Bell (the most popular story on Seeking Alpha this week), by The European View;Aaron: AT&T's Day Of Reckoning Is Coming, by Daniel Jones;Aaron: AT&T: Those Who Do Not Learn From History Are Doomed To Repeat It, by Mauro Solis;Aaron: Netflix: Buy The Earnings Dip, by Bill Maurer.Last Word (18:46)The disconnect between markets and the economy: is it really that unusual? Is the market being unrealistically optimistic about a vaccine for COVID-19?Learn more about your ad choices. Visit megaphone.fm/adchoices