Reactions To PFE and MCD Earnings

Good Tuesday Morning, MPTraders!  October 29, 2024-- Pre-Market Update: Three trading days remain in October... Several major Earnings Reports will be released today (see Calendar Below)... So far this morning, PFE and MCD reactions to earnings are on my radar (see below). Election Day is one week from today... The so-called Trump Trades perform well: DJT (wow!) and BTC, while ES (December E-mini S&P future) levitates in a high-level digestion pattern...

PFE (Pfizer):

• Pfizer reported third-quarter revenue and adjusted profit that blew past expectations.
• The company hiked its full-year outlook as its Covid vaccine and antiviral pill Paxlovid helped boost sales.
• It is a critical quarterly report for Pfizer, which is grappling with a proxy battle waged by the activist investor Starboard Value (CNBC)

Technically, in reaction to earnings, PFE spiked higher toward 30.00, but that is where sellers emerged, putting a lid on upside continuation. That said, however, PFE remains in the grasp of a potentially powerful 12-month base-accumulation period and pattern (see my attached Chart) that deserves the benefit of the doubt on the upside-- i.e., a thrust above key resistance at 30.00/45. Only a bout of weakness that breaks below support at 28.20/50 wrecks the promising technical setup... Last is 29.39... (continued below the PFE chart)...

As for MCD, it also beat The Street's expectations, but unlike PFE's positive reaction, MCD is trading lower after the news:

• McDonald’s third-quarter earnings and revenue topped Wall Street’s estimates.
• Its U.S. restaurants reversed last quarter’s same-store sales decline.
• The earnings report didn’t mention the recent E. coli outbreak across 13 states that’s been linked to McDonald’s Quarter Pounder burgers (CNBC)

Technically, MCD is still under the influence of the E.Coli debacle that one week ago nosedived the stock from 314.50 to 282.00 (-11%). So far this AM, in reaction to stronger-than-expected earnings, MCD is down 2.2%. As long as MCD is trading below key resistance from 300 to 303, my pattern work argues for a retest of the E.Coli low at 282.00 and the 200 DMA, now at 279.33, which must contain and reverse the weakness to avert additional weakness into the 263-268 Target Support Window where my pattern work will be expecting renewed buying interest... Last is 290.01... (Next up:  DJT, BTC, and ES)...