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Market Rally Spreads to Other Sectors; Plus TMUS, PTON, UBER

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The Dow, Nasdaq and S&P 500 are all enjoying their strongest week of trading in seven months, bouncing back from a big sell-off last week. The Dow is now within 1% of 2020 break-even, the S&P 500 is up 7% in the first four trading days and the Nasdaq is +9%. On the day, the small-cap Russell 2000 led the way, +2.78%; the Nasdaq followed, +2.59% to an even 300 points on the day; the Dow was +1.95% and the S&P 500 +1.94%.

Materials, Financials and Industrials led the way along with Tech stocks this Thursday, following a heavy-duty Wednesday trading session that was unquestionably led by Big Tech. It should give investors faith in the overall economy to see this many different sectors — 10 of 11 of which in the S&P 500 were positive on the day — performing well. Only Energy slipped into the red late in the regular session.

Speaking of performing well, T-Mobile (TMUS - Free Report) put up a strong earnings beat to $1.00 per share, way above the 51 cents in the Zacks consensus. Revenues of $19.3 billion surpassed the $18.25 billion analysts were expecting, with net adds for the quarter coming in north of 2 million, from the 839K estimate. Clearly the synergies from its merger with Sprint are paying off; could this also illustrate consumer interest in 5G technology? T-Mobile is no stranger to big blowout earnings surprises — its trailing 4-quarter average beat was by 125%.

Peloton (PTON - Free Report) also surged past estimates in it fiscal Q1 report released after Thursday’s close, with 20 cents per share easily outpacing the 12 cents expected, on $758 million in revenues, which represent 232% growth year over year. The company said unexpected demand in its Bike+ drove the quarter, with connected fitness subscriptions up 137% year over year. The company continues to have a large backlog, meaning demand appears strong for Q4, as well.

Uber (UBER - Free Report) , fresh off a Tuesday win in California when Prop 22 passed, reported a 2-cent miss on its bottom line to -62 cents per share, on $3.13 billion in sales which was exactly in-line with the Zacks consensus. Food Delivery has made an impressive surge, now accounting for more than a half of total gross bookings in the quarter, up 134% year over year, +23% quarter over quarter. Q3 net losses came to $1.1 billion, $6 billion year to date. The company expects EBITDA profitability by the end of 2021.

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