{"id":66015,"date":"2023-01-26T08:56:17","date_gmt":"2023-01-26T13:56:17","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66015"},"modified":"2023-01-26T08:56:17","modified_gmt":"2023-01-26T13:56:17","slug":"coffee-with-greta-stocks-rise-as-gdp-beats","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/01\/26\/coffee-with-greta-stocks-rise-as-gdp-beats\/","title":{"rendered":"Coffee With Greta: Stocks Rise As GDP Beats"},"content":{"rendered":"

DJIA Futures: <\/b>+87 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+23 (+0.6%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+116 (+1.0%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher as traders digest strong Q4 GDP data and an earnings beat from Tesla.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

U.S. Economy Expands More Than Expected\u00a0<\/span><\/h2>\n

The U.S. economy grew more than expected at the end of 2022.\u00a0<\/span><\/p>\n

The Commerce Department\u2019s first estimate shows GDP rose at a 2.9% annualized pace in Q4.\u00a0<\/span><\/p>\n

That was better than economists\u2019 expectations for 2.8% but still down from 3.2% growth in Q3.<\/span><\/p>\n

The data showed consumer spending remained strong at the end of the year, up 2.1% on a quarterly basis.\u00a0<\/span><\/p>\n

Inflation pressures also cooled with the personal consumption expenditures price index increasing 3.2%, down from 4.8% in Q3.\u00a0<\/span><\/p>\n

The slowdown in GDP growth from Q3 to Q4 was largely driven by lower residential fixed investment which plunged 26.7% as the housing market slowed.\u00a0<\/span><\/p>\n

Exports also declined 1.3% in the quarter.\u00a0<\/span><\/p>\n

Tesla Beats Q4 Expectations<\/span><\/h2>\n

Tesla <\/b>(TSLA) shares are rallying 8.8% ahead of the open after reporting record revenue in Q4 and beating earnings expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the electric automaker\u2019s results compared to analysts\u2019 estimates:<\/span>
\n<\/span><\/p>\n

    \n
  • Adjusted EPS: $1.19 vs $1.13 expected<\/span><\/li>\n
  • Revenue: $24.32 billion vs $24.16 billion expected<\/span><\/li>\n<\/ul>\n

    Automotive revenue jumped 33% year over year but gross margins came in at 25.9%, the lowest figure in five years.\u00a0<\/span><\/p>\n

    Tesla blamed those smaller margins on lower sales prices, saying average sales prices have \u201cgenerally been on a downward trajectory for many years\u201d.\u00a0<\/span><\/p>\n

    The company most recently cut prices on its cars in the U.S. and China in late 2022.\u00a0<\/span><\/p>\n

    IBM Sales Top Estimates<\/span><\/h2>\n

    IBM <\/b>(IBM) shares are slipping 2.2% in premarket trade despite reporting better-than-expected sales in the fourth quarter.\u00a0<\/span><\/p>\n

    Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

      \n
    • Adjusted EPS: $3.60 as expected<\/span><\/li>\n
    • Revenue: $16.69 billion vs $16.4 billion expected<\/span><\/li>\n<\/ul>\n

      IBM\u2019s total revenue was flat year over year, beating expectations for the first decline in two years.\u00a0<\/span><\/p>\n

      For the full year, the company\u2019s revenue jumped 6% to $60.5 billion.\u00a0<\/span><\/p>\n

      IBM reiterated its previous forecast for 2023 revenue growth in the mid-single digits, suggesting a total of about $63.5 billion vs $60.8 billion expected.\u00a0<\/span><\/p>\n

      The company is projecting $10.5 billion in free cash flow this year vs $11.1 billion expected.\u00a0<\/span><\/p>\n

      American Airlines Beats Earnings Estimates<\/span><\/h2>\n

      American Airlines <\/b>(AAL) shares are up 1.9% ahead of the open after beating Q4 earnings estimates.\u00a0<\/span><\/p>\n

      Here\u2019s how the airline\u2019s results compared to analysts\u2019 expectations:\u00a0<\/span><\/p>\n

        \n
      • Adjusted EPS: $1.17 vs $1.14 expected<\/span><\/li>\n
      • Revenue: $13.19 billion vs $13.20 billion expected<\/span><\/li>\n<\/ul>\n

        Revenue jumped 16.6% compared to the same quarter in 2019 as travelers paid higher fare prices.\u00a0<\/span><\/p>\n

        That revenue total was a new record for the company despite operating 6.1% less capacity than Q4 2019.\u00a0<\/span><\/p>\n

        American brought in $127 million in net income for all of 2022, its first full-year profit since 2019.\u00a0<\/span><\/p>\n

        The carrier forecast Q1 capacity will be 8% to 10% higher year over year.<\/span><\/p>\n

        Southwest Reports Worse-Than-Expected Q4 Loss<\/span><\/h2>\n

        Southwest Airlines <\/b>(LUV) shares are dropping 2.6% in premarket trade after reporting a steeper Q4 loss than expected.<\/span><\/p>\n

        Here\u2019s how the carrier\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

          \n
        • Adjusted loss per share: $0.38 vs $0.12 expected<\/span><\/li>\n
        • Revenue: $6.17 billion vs $6.16 billion expected<\/span><\/li>\n<\/ul>\n

          That loss was driven by the mass cancellation of about 16,700 Southwest flights between December 21 and December 31.<\/span><\/p>\n

          The company said it expects that meltdown to continue weighing on its bottom line in Q1.\u00a0<\/span><\/p>\n

          Southwest said it expects to post another loss in Q1, sharply missing analysts\u2019 expectations for a profit of $0.19 per share.\u00a0<\/span><\/p>\n

          The airline reported a $529 million profit for the full-year 2022, down 45% from a year earlier.\u00a0<\/span><\/p>\n

          Key Earnings After The Close<\/span><\/h2>\n

          Here\u2019s a look at the companies set to report earnings after the close today:<\/span><\/b><\/p>\n

            \n
          • Intel <\/b>(INTC)<\/span><\/li>\n
          • Visa <\/b>(V)<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            DJIA Futures: +87 (+0.3%) SPX Futures: +23 (+0.6%) NASDAQ Futures: +116 (+1.0%) Good morning friends! Futures are higher as traders digest strong Q4 GDP data and an earnings beat from Tesla. Let\u2019s get right to it! U.S. Economy Expands More Than Expected\u00a0 The U.S. economy grew more than expected at the end of 2022.\u00a0 The Commerce Department\u2019s first estimate shows GDP rose at a 2.9% annualized pace in Q4.\u00a0 That was better than economists\u2019 expectations for 2.8% but still down from 3.2% growth in Q3. The data showed consumer spending remained strong at the end of the year, up 2.1% on a quarterly basis.\u00a0 Inflation pressures also cooled with the personal consumption expenditures price index increasing 3.2%, down from 4.8% in Q3.\u00a0 The slowdown in GDP growth from Q3 to Q4 was largely driven by lower residential fixed investment which plunged 26.7% as the housing market slowed.\u00a0 Exports also declined 1.3% in the quarter.\u00a0 Tesla Beats Q4 Expectations Tesla (TSLA) shares are rallying 8.8% ahead of the open after reporting record revenue in Q4 and beating earnings expectations.\u00a0 Here\u2019s how the electric automaker\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $1.19 vs $1.13 expected Revenue: $24.32 billion vs $24.16 billion expected Automotive revenue jumped 33% year over year but gross margins came in at 25.9%, the lowest figure in five years.\u00a0 Tesla blamed those smaller margins on lower sales prices, saying average sales prices have \u201cgenerally been on a downward trajectory for many years\u201d.\u00a0 The company most recently cut prices on its cars in the U.S. and China in late 2022.\u00a0 IBM Sales Top Estimates IBM (IBM) shares are slipping 2.2% in premarket trade despite reporting better-than-expected sales in the fourth quarter.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $3.60 as expected Revenue: $16.69 billion vs $16.4 billion expected IBM\u2019s total revenue was flat year over year, beating expectations for the first decline in two years.\u00a0 For the full year, the company\u2019s revenue jumped 6% to $60.5 billion.\u00a0 IBM reiterated its previous forecast for 2023 revenue growth in the mid-single digits, suggesting a total of about $63.5 billion vs $60.8 billion expected.\u00a0 The company is projecting $10.5 billion in free cash flow this year vs $11.1 billion expected.\u00a0 American Airlines Beats Earnings Estimates American Airlines (AAL) shares are up 1.9% ahead of the open after beating Q4 earnings estimates.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 expectations:\u00a0 Adjusted EPS: $1.17 vs $1.14 expected Revenue: $13.19 billion vs $13.20 billion expected Revenue jumped 16.6% compared to the same quarter in 2019 as travelers paid higher fare prices.\u00a0 That revenue total was a new record for the company despite operating 6.1% less capacity than Q4 2019.\u00a0 American brought in $127 million in net income for all of 2022, its first full-year profit since 2019.\u00a0 The carrier forecast Q1 capacity will be 8% to 10% higher year over year. Southwest Reports Worse-Than-Expected Q4 Loss Southwest Airlines (LUV) shares are dropping 2.6% in premarket trade after reporting a steeper Q4 loss than expected. Here\u2019s how the carrier\u2019s results compared to analysts\u2019 estimates: Adjusted loss per share: $0.38 vs $0.12 expected Revenue: $6.17 billion vs $6.16 billion expected That loss was driven by the mass cancellation of about 16,700 Southwest flights between December 21 and December 31. The company said it expects that meltdown to continue weighing on its bottom line in Q1.\u00a0 Southwest said it expects to post another loss in Q1, sharply missing analysts\u2019 expectations for a profit of $0.19 per share.\u00a0 The airline reported a $529 million profit for the full-year 2022, down 45% from a year earlier.\u00a0 Key Earnings After The Close Here\u2019s a look at the companies set to report earnings after the close today: Intel (INTC) Visa (V)<\/p>\n","protected":false},"author":41,"featured_media":66019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=66015"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66015\/revisions"}],"predecessor-version":[{"id":66020,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66015\/revisions\/66020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66019"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}