All posts by Greta Wall
Coffee With Greta: Strong Jobs Report Crushes Rate Cut Hopes
DJIA Futures: -138 (-0.4%) SPX Futures: +1 (+0.02%) NASDAQ Futures: +50 (+0.3%) Good morning friends! Futures are mixed as traders digest the strong jobs report and big tech earnings. Let’s get right to it! Jobs Report Crushes Expectations The U.S. economy added far more jobs than expected in January. The Labor Department reported employers added 353,000 jobs last month vs 185,000 expected. The unemployment rate was unchanged at 3.7% vs expectations for an increase to 3.8%. Average hourly earnings increased 0.6% monthly and 4.5% year over year. That was far better than economists’ expectations for 0.3% monthly and 4.1% annually. Professional and business services led the job gains adding 74,000 workers. Health care added 70,000, retail trade added 45,000, government added 36,000, social assistance added 30,000, and manufacturing added 23,000. December’s job gains were also revised higher to 333,000 from the 216,000 initial estimate. November was revised up to 182,000 from 173,000. The strong labor market data sent Treasury yields shooting higher this morning. The 10-year yield is up 13 basis points at 4% while the 2-year yield is up 19 basis points at 4.40%. CME Group’s FedWatch Tool now shows over 80% of traders betting the Fed will keep rates unchanged at the March 20 meeting. Amazon Rallies On Strong Earnings Amazon (AMZN) shares are rallying 6.4% ahead of the open after crushing Q4 expectations and issuing strong guidance. Here’s how the tech giant’s results compared to analysts’ estimates: EPS: $1.00 vs $0.80 expected Revenue: $170 billion vs $166.2 billion expected Amazon Web Services Revenue: $24.2 billion as expected Ad Revenue: $14.7 billion vs $14.2 billion expected Revenue surged 14% year over year thanks to a strong holiday shopping season and Amazon’s October Prime Day event. CEO Andy Jassy said, “This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon. As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about.” Amazon forecast Q1 sales between $138 billion and $143.5 billion vs $142.1 billion expected. That would represent growth of 8% to 13%. Apple Falls On Weak iPhone Outlook Apple (AAPL) shares are down 3.7% in premarket trade after beating fiscal Q1 estimates but forecasting weaker iPhone sales. Here’s how the iPhone maker’s results compared to analysts’ estimates: EPS: $2.18 vs $2.10 expected Revenue: $119.58 billion vs $117.91 billion expected iPhone revenue: $69.70 billion vs $67.82 billion expected Mac revenue: $7.78 billion vs $7.73 billion expected iPad revenue: $7.02 billion vs $7.33 billion expected Other Products revenue: $11.95 billion vs $11.56 billion expected Services revenue: $23.12 billion vs $23.35 billion expected The company did not provide official guidance for the current quarter but the CFO said both total company revenue and iPhone sales would be similar to the same quarter last year. Meta Surges On Earnings Beat, Dividend Announcement Meta Platforms (META) shares are surging 16.5% ahead of the open after crushing Q4 expectations and announcing the company’s first-ever dividend. Here’s how the Facebook parent company’s results compared to analysts’ estimates: EPS: $5.33 vs $4.96 expected Revenue: $40.11 billion vs $39.18 billion expected Revenue jumped 25% year over year, the fastest rate of growth since mid-2021. Net income more than tripled from a year ago. Meta’s “year of efficiency” appears to have paid off in 2023 as the company doubled its operating margin to 41% while expenses decreased 8% year over year. The company announced it will pay investors a $0.50 per share dividend on March 26. Meta also announced a $50 billion share buyback.
Continue Reading -->Coffee With Greta: March Cut Hopes Dashed
DJIA Futures: +17 (+0.04%) SPX Futures: +20 (+0.4%) NASDAQ Futures: +100 (+0.6%) Good morning friends! Futures are higher as traders digest the first Fed decision of the year and await big tech earnings after the close. Let’s get right to it! Yields Fall After Fed Decision Treasury yields are falling this morning as the market digests the first Fed decision of 2024. The 10-year yield is down two basis points at 3.90% while the 2-year yield is down one basis point at 4.20%. The Federal Reserve threw cold water on traders’ hopes for a March rate cut on Wednesday. The Federal Open Market Committee kept the federal funds rate in a range of 5.25% to 5.5% as expected. In its statement, the FOMC said, “The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” The statement did remove language about “any additional policy firming that may be appropriate”, which was a key change for shifting policy ahead. But Chairman Jerome Powell said in his press conference, “Based on the meeting today, I would tell you that I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that. But that’s to be seen.” CME Group’s FedWatch Tool now shows nearly 61% of traders expecting the first 25bps rate cut at the May 1 meeting. Qualcomm Slips On Weak Guidance Qualcomm (QCOM) shares are down 2.1% ahead of the open after beating fiscal Q1 expectations but issuing soft guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $2.75 vs $2.37 expected Revenue: $9.92 billion vs $9.51 billion expected Net income jumped 24% year over year. The company said it shipped $6.69 billion in smartphone chips during the quarter, up 16% from a year ago. Qualcomm forecast fiscal Q2 adjusted EPS between $1.73 and $1.93 on revenue of $8.9 billion to $9.7 billion. Analysts’ were forecasting EPS of $2.25 on $9.3 billion in revenue. Peloton Tumbles On Mixed Results, Bad Outlook Peloton (PTON) shares are plunging 10.1% in premarket trade after reporting mixed fiscal Q2 results and issuing weak guidance. Here’s how the fitness equipment maker’s results compared to analysts’ estimates: Loss per share: $0.54 vs $0.53 expected Revenue: $743.6 billion vs $733.5 million For fiscal Q3, Peloton forecast sales between $700 million and $725 million vs $754 million expected. The company expects an adjusted EBITDA loss of $20 million to $30 million vs expectations for a $2 million loss. The CFO said, “Our outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook.” More MAG7 Earnings Ahead Today will be a big day of earnings for traders after the market closes. The rest of the Magnificent 7 stocks are scheduled to report after-hours with Apple (AAPL), Meta Platforms (META), and Amazon (AMZN). Focus is on these results after Microsoft (MSFT) and Alphabet (GOOGL) reported earlier this week. Apple’s results will be released at 4:30 p.m. ET with the conference call at 5:00, the stock’s implied move is 5%. Meta’s report will be out at 4:15 p.m. ET with the earnings call at 5:00, the stock’s implied move is 11.8%. Amazon’s report will be released right as the market closes at 4:00 p.m. ET with the conference call at 5:30, the stock’s implied move is 7.2%. Weekly Jobless Claims Climb To 3-Month High Weekly jobless claims rose more than expected last week in a possible sign of a softening labor market. The Labor Department reported 224,000 Americans filed initial claims for unemployment benefits last week. That was up by 9,000 from the previous week and higher than 214,000 expected. It was also the highest total in nearly three months. Continuing claims rose by 70,000 to 1.9 million in the week ending January 20.
Continue Reading -->Coffee With Greta: Big Tech Earnings + The Fed
DJIA Futures: +48 (+0.1%) SPX Futures: -24 (-0.5%) NASDAQ Futures: -171 (-1.0%) Good morning friends! Futures are mixed as traders digest big tech earnings, new jobs data, and look ahead to the Fed decision. Let’s get right to it! Private Job Growth Slows Job growth in the U.S. private sector slowed more than expected in January. Payroll firm ADP reported private employers added 107,000 jobs in the first month of the year vs 150,000 expected. That was a decline from the downwardly revised 158,000 in December. The information services sector was the only to report a drop, losing 9,000 workers. Leisure and hospitality added 28,000 workers, trade, transportation and utilities added 23,000, and construction rose by 22,000. ADP’s report showed a 5.2% annual increase in wages in January. This data comes ahead of the official jobs report from the Labor Department on Friday which is expected to show the U.S. economy added 185,000 and the unemployment rate rising to 3.8%. Microsoft Slips After Earnings Microsoft (MSFT) shares are down 0.5% ahead of the open after beating fiscal Q2 expectations on the top and bottom line but issuing soft guidance. Here’s how the tech giant’s results compared to analysts’ estimates: EPS: $2.93 vs $2.78 expected Revenue: $62.02 billion vs $61.12 billion expected Total revenue rose 17.6% year over year. Microsoft’s Intelligent Cloud segment reported $25.88 billion in revenue, up 20% from a year ago and higher than $25.29 billion expected. Revenue from Azure and other cloud services jumped 30% year over year vs 27.5% growth expected. Microsoft forecast fiscal Q3 revenue between $60 billion and $61 billion, putting the middle of the range at $60.5 billion vs $60.93 billion expected. Alphabet Slides On Disappointing Ad Revenue Alphabet (GOOGL) shares are falling 5.7% in premarket trade after reporting lower than expected Q4 ad revenue. Here’s how the tech giant’s results compared to analysts’ estimates: Adjusted EPS: $1.64 vs $1.59 expected Revenue: $86.31 billion vs $85.33 billion expected Google Cloud Revenue: $9.19 billion vs $8.94 billion expected Overall Ad Revenue: $65.52 billion vs $65.94 billion expected YouTube Ad Revenue: $9.2 billion vs $9.21 billion expected Alphabet’s total revenue jumped 13% year over year, the fastest quarter of growth since early 2022. Google Cloud saw growth of 26% during the quarter. AMD Drops On Weak Forecast Advanced Micro Devices (AMD) shares are down 4.6% ahead of the open after reporting Q4 earnings that were in line with expectations and issuing soft guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $0.77, in line with estimates Revenue: $6.17 billion vs $6.12 billion expected AMD forecast Q1 sales of $5.4 billion, plus or minus $300 million. That was short of analysts’ expectations for $5.73 billion. AMD’s CEO said, “For 2024, we expect the demand environment to remain mixed.” Starbucks Misses Expectations Starbucks (SBUX) shares are up 5% in premarket trade despite reporting weaker than expected fiscal Q1 earnings and revenue. Here’s how the coffee giant’s results compared to analysts’ estimates: Adjusted EPS: $0.90 vs $0.93 expected Revenue: $9.4 billion vs $9.59 billion expected Revenue rose 8% year over year. Global same-store sales rose 5% from a year ago, missing expectations for 7.2% growth. North American same-store sales also rose 5%. International same-store sales growth of 7% fell short of expectations for 13.2% growth. Boeing Beats Q4 Estimates Boeing (BA) shares are up 1.8% ahead of the open after beating Q4 expectations. Here’s how the planemaker’s results compared to analysts’ estimates: Adjusted loss per share: $0.47 vs $0.78 expected Revenue: $22.02 billion vs $21.11 billion expected Revenue rose 10% year over year and Boeing had $2.95 billion in free cash flow during the quarter. The company declined to provide 2024 guidance amid the latest controversy with its Max 9 planes. The CEO said, “While we often use this time of year to share or update our financial and operational objectives, now is not the time for that. We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately – that is what will drive our performance.” In Case You Missed It The number of job openings in the U.S. rose unexpectedly in December. The Labor Department’s job openings and labor turnover survey (JOLTS) shows there were 9.026 million available jobs in the final month of 2023. That was higher than 8.714 million expected and the first month above 9 million since September. The data shows the U.S. labor market continuing to maintain strength amid the Fed’s tightening efforts. Consumer confidence jumped to a two-year high this month. The Conference Board’s consumer confidence index rose to 114.8 in January from 108 in December. That slightly missed economists’ expectations for a reading of 115. It is the highest level of consumer confidence since December 2021. Confidence in current economic conditions rose to 161.3 from 147.2. The six-month expectations index rose to 83.8 from 81.9. U.S. home prices cooled in November. The S&P Case-Shiller national home price index fell 0.2% monthly from October. It was the first monthly drop since January 2023. National prices were still 5.1% higher compared to November 2022. The 10-city index rose 6.2% year over year while the 20-city index rose 5.4% annually.
Continue Reading -->Coffee With Greta: Gearing Up For Big Tech
DJIA Futures: -89 (-0.2%) SPX Futures: -11 (-0.2%) NASDAQ Futures: -46 (-0.3%) Good morning friends! Futures are slipping as traders gear up for the start of big tech earnings this afternoon. Let’s get right to it! SMCI Surges After Earnings Super Micro Computer (SMCI) shares are rallying 11.5% ahead of the open after crushing fiscal Q2 results and hiking its full-year outlook. Here’s how the server and computer products maker’s results compared to analysts’ estimates: Adjusted EPS: $5.59 vs $5.05 expected Revenue: $3.66 billion vs $2.8 billion expected Those results were even better than what the company pre-announced last week. For the fiscal third quarter, SMCI expects adjusted EPS of $5.20 to $6.01 on revenue of $3.7 billion to $4.1 billion. That sharply beat analysts’ estimates of $4.61 in adjusted EPS on $2.9 billion in revenue. The company also raised its full-year forecast to between $14.3 billion and $14.7 billion vs its previous outlook for $10 billion to $11 billion. General Motors Jumps On Earnings Beat, Strong Outlook General Motors (GM) shares are up 7.4% in premarket trade after beating Q4 expectations on the top and bottom line. Here’s how the automaker’s results compared to analysts’ estimates: Adjusted EPS: $1.24 vs $1.16 expected Revenue: $42.98 billion vs $38.67 billion expected GM’s full-year 2023 revenue rose 10% from 2022 and the company forecast another strong year in 2024. The CFO said, “As we begin 2024, I believe GM is well positioned for another year of strong financial performance.” GM expects full-year 2024 adjusted EPS of $8.50 to $9.50 and adjusted automotive free cash flow of $8 billion to $10 billion. Pfizer Tops Earnings Estimates Pfizer (PFE) shares are up 0.6% ahead of the open after reporting a surprise profit in the fourth quarter. Here’s how the pharmaceutical giant’s results compared to analysts’ estimates: Adjusted EPS: $0.10 vs $0.22 loss per share expected Revenue: $14.25 billion vs $14.42 billion expected Revenue dropped 10% year over year as Covid product sales plunged. Pfizer’s Covid vaccine and Paxlovid treatment brought in $12.5 billion in total revenue in 2023, down 78% from 2022. Excluding Covid products, Pfizer’s Q4 revenue grew 8%. The company reiterated its 2024 forecast for adjusted EPS of $2.05 to $2.25 on $58.5 billion to $61.5 billion in revenue. UPS Sinks After Revenue Miss, Weak Outlook United Parcel Service (UPS) shares are falling 5.6% in premarket trade after missing Q4 revenue expectations and issuing weak guidance. Here’s how the shipping giant’s results compared to analysts’ estimates: Adjusted EPS: $2.47 vs $2.46 expected Revenue: $24.92 billion vs $25.40 billion expected Revenue was down 7.8% year over year and missed forecasts for the sixth straight quarter. Domestic package revenue dropped 7.3% to $16.92 billion vs $17.39 billion expected. International package revenue declined 6.9% to $4.61 billion vs $4.64 billion expected. UPS did raise its quarterly dividend to $1.63 per share, implying a 4.13% yield based on Monday’s closing price. The company forecast 2024 revenue of $92 billion to $94.5 billion vs $95.51 billion expected. UPS also announced it will layoff 12,000 employees as part of cost-cutting efforts this year. The CEO said those cuts will save the company about $1 billion in costs.
Continue Reading -->Coffee With Greta: Huge Week Kicks Off
DJIA Futures: -18 (-0.1%) SPX Futures: -0.25 (-0.01%) NASDAQ Futures: +18 (+0.1%) Good morning friends! Futures are flat as traders begin a huge week. Let’s get right to it! Key Week This will be a major week for traders between the first Fed meeting of 2024, big tech earnings, and the January jobs report. Things kickoff with the December Job Openings and Labor Turnover Survey (JOLTS) plus January consumer confidence on Tuesday. Mega-cap tech companies also begin reporting earnings on Tuesday with Microsoft (MSFT), Alphabet (GOOGL), and Advanced Micro Devices (AMD) scheduled to report after the close. On Wednesday, traders will get ADP’s private employment report ahead of the open with the Fed rate decision and press conference at 2:00 p.m. ET. Thursday is another big earnings day with Apple (AAPL), Amazon (AMZN), and Meta Platforms (META) after-hours. Friday morning, the Labor Department releases the official January jobs report. Yields Fall Treasury yields are lower this morning ahead of this week’s Fed meeting. The 10-year yield is down four basis points at 4.10%. The central bank is expected to leave interest rates unchanged on Wednesday. But focus will be on the statement’s language about future rate cuts and on what Fed Chair Jerome Powell says about cuts in his press conference. CME Group’s FedWatch Tool shows just under 49% of traders anticipating the first cut at the March 20 meeting. Over 50% are betting on a cut at the May 1 meeting. iRobot Tumbles After Amazon Dumps Deal iRobot (IRBT) shares are plunging 18.7% ahead of the open after Amazon (AMZN) terminated its planned acquisition of the vacuum-maker. The two companies said there was “no path to regulatory approval for the deal.” iRobot also announced it will lay off 31% of its employees, impacting around 350 people. Its CEO and board chair also stepped down effective immediately. Amazon will pay iRobot a $94 million breakup fee.
Continue Reading -->Coffee With Greta: Inflation And Earnings
DJIA Futures: +2 (+0.01%) SPX Futures: +3 (+0.1%) NASDAQ Futures: -33 (-0.2%) Good morning friends! Futures are mixed as traders digest new inflation data and the latest batch of earnings. Let’s get right to it! Fed’s Preferred Inflation Gauge The Fed’s preferred inflation gauge showed annual price increases were lower than expected at the end of 2023. The Commerce Department’s personal consumption expenditures (PCE) price index rose 0.2% monthly and 2.6% year over year. The core PCE price index, which is the Fed’s preferred measure, rose 0.2% monthly and 2.9% annually. That was lighter than expectations for a 3% annual increase and down from the 3.2% change in November. Consumer spending rose 0.7% in December, stronger than 0.5% expected. Personal income growth slipped to 0.3%, in line with expectations. Intel Outlook Falls Short Intel (INTC) shares are down 10.0% ahead of the open after beating Q4 expectations but issuing weak guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $0.54 vs $0.45 expected Revenue: $15.4 billion vs $15.15 billion expected The company’s revenue rose 10% year over year, breaking a seven quarter streak of declining revenue. Intel forecast Q1 EPS of $0.13 on $12.2 billion to $13.2 billion in revenue. That missed analysts’ expectations of $0.33 in EPS on $14.15 billion in revenue. Levi Strauss Revenue Misses, Layoffs Announced Levi Strauss (LEVI) shares are slipping 1.1% in premarket trade after reporting mixed Q4 results and issuing a weak outlook. Here’s how the denim giant’s results compared to analysts’ estimates: Adjusted EPS: $0.44 vs $0.43 expected Revenue: $1.64 billion vs $1.66 billion expected Revenue rose 3% year over year. Levi projected revenue will rise between 1% and 3% for the full fiscal year, lower than 4.7% expected. The company forecast full-year earnings of $1.15 to $1.25 per share vs $1.33 expected. Levi also announced it will lay off at least 10% of its global corporate workforce as part of a restructuring. Those cuts are expected to take place in the first half of this year and could impact up to 15% of corporate employees. In Case You Missed It New home sales rose more than expected in December. The Census Bureau reported sales of newly built homes jumped 8% to a seasonally adjusted annual rate of 664,000 units last month. That was stronger than expectations for an SAAR of 649,000. The increase came as mortgage rates dropped below 7%, increasing demand in the market. The median sales price of a new home sold in December fell to $413,200 from $426,000 in November. The supply of new homes for sale fell 6.8% on a monthly basis. New home sales were up 4.4% year over year.
Continue Reading -->Coffee With Greta: TSLA Tanks
DJIA Futures: +87 (+0.2%) SPX Futures: +19 (+0.4%) NASDAQ Futures: +87 (+0.5%) Good morning friends! Futures are up after the release of strong economic data. Let’s get right to it! Tesla Tumbles After Q4 Miss, Weak Outlook Tesla (TSLA) shares are dropping 8.8% ahead of the open after missing Q4 expectations and issuing weak guidance for 2024. Here’s how the electric automaker’s results compared to analysts’ estimates: Adjusted EPS: $0.71 vs $0.74 expected Revenue: $25.17 billion vs $25.6 billion expected Total revenue rose 3% year over year with automotive revenue up just 1%. Tesla’s operating margin for the quarter was 8.2% vs 16% a year ago but up from 7.6% in Q3. The company said its vehicle volume growth in 2024 “may be notably lower” than last year as it works toward launching its “next-generation vehicle” in Texas. Q4 GDP Growth Tops Estimates The U.S. economy was much stronger than expected at the end of 2023. The Commerce Department’s first estimate shows GDP increased at a 3.3% annualized pace in the fourth quarter. That was better than economists’ expectations for a 2% growth rate and down from 4.9% in Q3. For the full year 2023, the U.S. economy expanded 2.5%. Consumer spending rose 2.8% in Q4, state and local government spending rose 3.7%, and federal government expenditures increased 2.5%. The PCE price index during the quarter, which is a measure of inflation, rose 2.7% vs 5.9% a year ago. The core PCE price index rose 3.2% vs 5.1% in Q4 2022. On a quarterly basis, headline inflation rose 1.7% while core inflation rose 2% from Q3. Weekly Jobless Claims Jump The number of new unemployment claims rose more than expected last week. The Labor Department reported 214,000 Americans filed initial claims for unemployment benefits. That was up by 25,000 from the previous week and higher than 199,000 expected. Continuing claims rose by 27,000 to 1.833 million in the week ending January 13. American Airlines Jumps On Earnings, Guidance Beat American Airlines (AAL) shares are rising 4.5% in premarket trade after beating Q4 expectations and issuing strong guidance. Here’s how the airline’s results compared to analysts’ estimates: Adjusted EPS: $0.29 vs $0.11 expected Revenue: $13.1 billion vs $13 billion expected Load factor, which measures how much passenger carrying capacity is used, came in at 83.6% vs 82.9% expected. American forecast full-year 2024 EPS between $2.25 and $3.25 vs $2.14 expected. The CEO said, “We are delivering on our commitments and remain well-positioned for the future, supported by the strength of our network and travel rewards program, our young and simplified fleet, our operational reliability, and our outstanding team.” Southwest Tops Q4 Estimates Southwest Airlines (LUV) are up 2.2% ahead of the open after beating Q4 expectations. Here’s how the airline’s results compared to analysts’ estimates: Adjusted EPS: $0.37 vs $0.12 expected Revenue: $6.8 billion vs $6.75 billion expected Revenue per available seat mile (RASM) decreased 8.9% year over year. Load factor fell to 78.2% from 83.5% a year ago, missing expectations for 81.7%. Southwest forecast Q1 RASM will increase 2.5% to 4.5% yaer over year. The CEO said, “We currently expect to grow our full year 2024 available seat miles roughly 6%, year-over-year, all of which is carryover from 2023 network restoration related growth.” In Case You Missed It Meta Platforms (META) briefly surpassed a $1 trillion market cap during Wednesday’s session. The stock popped to around $396 per share to hit the milestone for the first time since 2021. META closed 1.4% higher at $390.70. Meantime, Microsoft (MSFT) briefly crossed $3 trillion in market value on Wednesday when the stock hit around $404 per share. MSFT closed 0.9% higher at $402.56 per share.
Continue Reading -->Coffee With Greta: NFLX Delivers
DJIA Futures: +140 (+0.4%) SPX Futures: +25 (+0.5%) NASDAQ Futures: +138 (+0.8%) Good morning friends! Futures are higher as tech stocks rise after Netflix’s (NFLX) strong Q4 results. Let’s get right to it! Netflix Rallies Netflix (NFLX) shares are rallying 10.6% ahead of the open after beating Q4 subscriber and revenue expectations. Here’s how the streaming giant’s results compared to analysts’ estimates: EPS: $2.11 vs $2.22 expected Revenue: $8.83 billion vs $8.72 billion expected Total memberships: 260.8 million vs 256 million expected The company added 13.1 million subscribers during the quarter, blowing past expectations of 8 million to 9 million. Netflix raised its 2024 operating margin forecast to 24% from 22% to 23% previously. The company expects EPS of $4.49 in Q1 vs analysts’ $4.10 estimate. Texas Instruments Revenue Falls Short Texas Instruments (TXN) shares are falling 2.8% in premarket trade after reporting mixed Q4 results and issuing weak guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: EPS: $1.49 vs $1.47 expected Revenue: $4.08 billion vs $4.12 billion expected Revenue fell 13% year over year. The company’s CEO said, “During the quarter we experienced increasing weakness across industrial and a sequential decline in automotive.” Texas Instruments forecast Q1 revenue of $3.45 billion to $3.75 billion vs $4.05 billion expected. AT&T Slips On Weak Results AT&T (T) shares are down 2.7% ahead of the open after missing Q4 earnings expectations. Here’s how the company’s results compared to analysts’ estimates: Adjusted EPS: $0.54 vs $0.56 expected Revenue: $32 billion vs $31.46 billion expected Revenue was up slightly on an annual basis. Revenue in the wireless services division rose 3.9% from a year ago but business wireline sales dropped 10.3%. The number of customers who added new lines during the quarter came in at 526,000 vs 487.500 expected. AT&T had Q4 free cash flow of $6.4 billion vs $6.1 billion expected. The company forecast adjusted full-year 2024 EPS of $2.15 to $2.25 vs $2.46 expected. Mortgage Demand Rises Mortgage applications rose last week even as rates inched higher. The Mortgage Bankers Association reported purchase applications rose 8% from a week ago but were still down 18% year over year. That jump appeared to be driven by strong buyer demand after the holidays. An MBA economist said, “Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season.” Refinance applications fell 7% weekly and 8% annually. The average 30-year fixed contract rate rose to 6.78% from 6.75%.
Continue Reading -->Coffee With Greta: Record Climb Continues
DJIA Futures: -25 (-0.1%) SPX Futures: +9 (+0.2%) NASDAQ Futures: +45 (+0.3%) Good morning friends! Futures are mixed with the S&P 500 continuing its record-setting climb as traders digest new earnings. Let’s get right to it! United Airlines Earnings Beat United Airlines (UAL) shares are up 6.9% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the airline’s results compared to analysts’ estimates: Adjusted EPS: $2.00 vs $1.69 expected Revenue: $13.63 billion vs $13.54 billion expected Revenue jumped nearly 10% year over year. But United forecast a Q1 loss due to the FAA’s grounding of Boeing (BA) 737 Max 9 planes. The company expects an adjusted loss of $0.35 to $0.85 per share in the current quarter. United has 79 of the grounded aircraft in its fleet, the most of any airline. The company expects the planes to remain grounded through January 26. For the full year, United forecast adjusted EPS between $9 and $11 which was in line with analysts’ estimates. Johnson & Johnson Flat After Earnings Johnson & Johnson (JNJ) shares are up 0.1% in premarket trade after beating Q4 expectations. Here’s how the pharmaceutical giant’s results compared to analysts’ estimates: Adjusted EPS: $2.29 vs $2.28 expected Revenue: $21.40 billion vs $21.01 billion expected Revenue jumped 7.3% year over year. Medical device sales were up 13.3% from a year ago to $7.67 billion vs $7.50 billion expected. Pharmaceutical sales rose 4.2% to $13.72 billion with no sales of its Covid vaccine in the U.S. The company forecast full-year 2024 adjusted EPS of $10.55 to $10.75 on $87.8 billion to $88.6 billion in revenue. Procter & Gamble Price Hikes Boost Revenue Procter & Gamble (PG) shares are up 2.6% ahead of the open after reporting mixed Q4 results. Here’s how the consumer goods giant’s results compared to analysts’ estimates: Adjusted EPS: $1.84 vs $1.70 expected Revenue: $21.44 billion vs $21.48 billion expected Price hikes helped boost P&G’s revenue 3% year over year during the quarter. That helped offset some of the impact of writing down the value of razor brand Gillette by $1.3 billion. As consumers paid higher prices, sales volumes declined. Volume in the grooming division fell 1%, the beauty segment reported flat sales volumes, health care reported a 3% volume decline, and the feminine, baby and family care business saw sales volumes shrink 2%. For fiscal 2024, Procter & Gamble forecast core EPS growth of 8% to 9% vs 6% to 9% previously. But the company expected unadjusted EPS to be flat to down 1% vs previous expectations for 6% to 9% growth. P&G reiterated its sales forecast of 2% to 4% this year.
Continue Reading -->Coffee With Greta: All-Time Highs
DJIA Futures: +80 (+0.2%) SPX Futures: +15 (+0.3%) NASDAQ Futures: +85 (+0.5%) Good morning friends! Futures are up as the S&P 500 looks set to build upon new all-time highs. Let’s get right to it! Fresh Record The S&P 500 is rising to start the new week of trade after hitting a new all-time high on Friday. The index broke both its intraday and closing records from January 2022 during the last session, confirming Wall Street is in a bull market that started in October 2022. Now traders are looking ahead to some important earnings and economic data releases this week. On the earnings calendar, Netflix (NFLX) reports after the close Tuesday, Tesla (TSLA) reports after the close Wednesday, Intel (INTC) reports Thursday, and more big companies are sprinkled in between. For economic data, the first estimate of Q4 GDP growth will be released Thursday morning while the Fed’s preferred inflation gauge, the PCE price index will be out Friday morning. This is the final inflation data to be released before the Fed’s first meeting of the year next week. Macy’s Rejects Private Takeover Offer Macy’s (M) shares are up 1.9% in premarket trade after the retailer rejected a private takeover offer. The company rejected a $5.8 billion proposal from Arkhouse Management and its partner Brigade Capital Management, citing concerns over deal financing and valuation. The investment firms submitted the proposal last month to acquire the Macy’s shares they don’t already own for $21 per share. Arkhouse said the see “the potential for a meaningful increase to the original proposal if we are granted access to the necessary due diligence.” But Macy’s said the offer was not financially attractive or credible enough to grant that access. Spirit, JetBlue To Appeal Blocked Merger Spirit Airlines (SAVE) shares are up 3.9% with JetBlue Airways (JBLU) shares slipping 0.4% ahead of the open after the companies said they would appeal a judge’s ruling to block their proposed merger. A federal judge blocked JetBlue’s proposed deal to acquire Spirit for $3.8 billion last Tuesday on antitrust grounds, saying removing Spirit from the market would create higher prices for customers. JetBlue said it was appealing the decision “consistent with the requirements of the merger agreement.”
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