10/30/2020
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Great Expectations
The great tech juggernaut, Amazon (AMZN) reported better than expected earnings for the third quarter after the close, but that was not enough to keep investors from sending the shares lower. Earnings per share came in at $12.37, which blew away analysts’ expectations of $8.87. The internet retailer posted sales of $96.1 billion, which was well above the company’s earlier guidance of $87 billion to $93 billion. Investors appear to be looking to the future and not happy with what they are seeing. AMZN’s fourth quarter guidance for operating income came in with a range of $1 billion to $4.5 billion, while Wall Street was looking for $5.8 billion. AMZN is currently trading 1.6% lower, in the pre-market.
Plowing Through the Storm
Google parent company, Alphabet (GOOG/GOOGL) reported a large earnings beat after the close yesterday, with Google’s first ad revenue gain for the year. The company posted earnings per share of $16.40 versus analysts’ expectations of $11.30. After two straight quarters of year over year declines, GOOG saw advertising revenues rise to $37.1 billion from $33.8 billion. YouTube ad revenue came in at $5.08 billion versus $3.8 billion a year ago. Shares of GOOG are currently trading over 6% higher in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -0.77%, near 3276
U.S. Crude Oil futures (/CL) -0.9%, near $35.85 a barrel
CBOE Volatility Index (VIX) +2.4%, near 33.95
U.S. Gold Futures (/GC) +1.1%, near $1888 an ounce
Major Economic Reports:
7:30 am CT – Personal Income and Outlays
7:30 am CT – Employment Cost Index
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
12:00 pm CT – Baker-Hughes Rig Count
Notable Earnings
Friday:
A.M. – ABBV, CBOE, CHTR, CL, CVX, GT, HON, KKR, LEA, LYB, MO, PSX, UA, UAA, WY, XOM
P.M.– N/A
Monday:
A.M. – CLX, LITE, LL, MPC
P.M. – AMC, ANET, CRUS, MDLZ, MOS, NTR, PAA, PYPL, RIG, SWKS, WMB
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10/29/2020
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Pinning it on the spot
Pinterest (PINS) posted strong revenue and user growth in the third quarter, as the social-media company saw significantly greater pandemic-filled engagement than it did in the spring and said it benefited from an advertiser boycott against Facebook (FB). The image-sharing company that makes money exclusively through advertising sales posted earnings of $0.13 per share soundly beating estimates of only $0.02 per share. The company reported revenue of $443 million, which was a 58% increase over sales of $279.70 million the same period last year. Shares of Pinterest are up over 30% in the pre-market.
Built tough
Ford Motor (F) more than tripled the consensus estimate of $0.19 cents a share, with a strong quarterly profit of $0.65. This result was a 91% increase over earnings from the same period last year on revenue of $37.5 billion, which also easily beat the estimate of $32.9 billion. The Dearborn MI automaker had vehicle shipments hit 651,000, rising from 639,000 in the third quarter of 2019. The automobile giant also reported that by end of the year, customers will be able to choose from 12 Hybrid and fully electric vehicles around the globe, including the much-anticipated all-electric Mustang Mach-E. Shares of Ford are up 4.0% in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.25%, near 3271.50
U.S. Crude Oil futures (/CL) -4.90%, near $35.55 a barrel
CBOE Volatility Index (VIX) -1.4%, near 39.85
U.S. Gold Futures (/GC) -0.80%, near $1864.00 an ounce
Major Economic Reports:
7:30 am CT – Jobless Claims
7:30 am CT – GDP
7:30 am CT – Export Sales
9:00 am CT – Pending Homes Sales Index
9:30 am CT – EIA Natural Gas Report
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Notable Earnings
Thursday:
A.M. – ADS, ALXN, AMT, APO, BAX, BUD, CMCSA, COP, CS, DD, DNKN, ICE, KDP, IP, KHC, MRNA, NEM, OSTK, PCG, PENN, RCL, RDS/A, RL, SHOP, SO, SPOT, TAP, TPR, TXT, YUM
P.M. – AAPL, ADM, AMZN, ATVI, AUY, COG, CVNA, DVA, DVN, EXAS, FB, FLEX, GOOG, GOOGL, HIG, ILMN, MGM, MSI, OLED, SBUX, SHAK, SKX, STNE, TEAM, TWTR, VRTX, WW, X
Friday:
A.M. – ABBV, CBOE, CHTR, CL, CVX, GT, HON, KKR, LEA, LYB, MO, PSX, UA, UAA, WY, XOM
P.M.– N/A
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10/28/2020
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What’s in your wallet?
Shares of Mastercard Incorporated (MA) are down double-digits ahead of the open after the credit card company saw 3Q revenue compress by 17% compared to this same time last year. Net income reached $1.5 Billion or $1.51 a share over the past three months which was short of target as well. The travel segment has continued to be annihilated with concerns over a 2nd wave of the pandemic now weighing on the minds of investors just as trends began to improve. The company purchased $2.1 billion worth of stock last quarter which was partially responsible for seeing new highs reached in late August at $367.25 along with fresh stimulus hopes. Shares of MA have since stumbled over the last three consecutive weeks and are now in a battle to stay above $300.
Burning Fuel
Boeing (BA) announced aggressive plans to reduce their workforce by 7,000 more by the end of the year in this morning’s quarterly earnings report to stem their current burn-rate. The company burned through a staggering $4.8 Billion in cash over the previous three months as 737 Max troubles continue. Over 3,000 test hours have now been completed to hopefully get the grounded aircraft back in the air after the 2-year grounding. The plane maker only delivered 28 planes during the last quarter as long hauler 787 Dreamliner traffic has been cut in half amid the pandemic. Shares have fallen in the 3 previous sessions with a +/- $6 market maker move projected into earnings.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -1.95%, near 3317
U.S. Crude Oil futures (/CL) -5.32%, near $37.42 a barrel
CBOE Volatility Index (VIX) +13.46%, near 37.84
U.S. Gold Futures (/GC) -1.64%, near $1878.90 an ounce
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications
7:30 am CT – International Trade in Goods (Advanced)
7:30 am CT – Retail Inventories (Advanced)
7:30 am CT – Wholesale Inventories (Advanced)
9:30 am CT – EIA Petroleum Status Report
Notable Earnings
Wednesday:
A.M. – ADP, ANTM, BA, BSX, BX, CME, EPD, GD, GE, HES, MA, NSC, SNE, UPS, YNDX
P.M. – AMGN, CREE, CTSH, CXO, EBAY, ETSY, F, FSLY, GILD, GRUB, KLAC, LVGO, NLY, NOW, PBR, PINS, SPWR, SU, TDOC, URI, V, WDC
Thursday:
A.M. – ADS, ALXN, AMT, APO, BAX, BUD, CMCSA, COP, CS, DD, DNKN, ICE, KDP, IP, KHC, MRNA, NEM, OSTK, PCG, PENN, RCL, RDS/A, RL, SHOP, SO, SPOT, TAP, TPR, TXT, YUM
P.M. – ASB, BJRI, BMTC, BOOM, BY, COF, CYBE, EHTH, FE, FFBC, GBCI, HTH, INDB, INTC, LLNW, MANH, MAT, MSBI, NSGN, OZK, PBCT, SAM, SIVB, TFII, USX, VICR, VRSN, WAL, WSFS
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10/27/2020
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AMD puts XLNX in the Chips
In the latest wave of semiconductor chip consolidation, Advanced Micro Devices (AMD) has agreed to purchase rival chip maker Xilinx Inc. (XLNX) for $35 billion. The two companies agreed to an all-stock deal, after it was previously reported they were in talks, just over two weeks ago for $30 billion. XLNX is currently trading almost 15% higher in the pre-market, while shares of AMD are just nominally higher.
The CAT is trying to land on its feet
The heavy machinery maker, Caterpillar (CAT) is feeling the impact of the pandemic as construction has slowed in numerous industries. Customers held off making heavy machinery purchases in the third quarter, which caused a 32% drop in sales. Revenue declined 24% in energy and transportation, 21% in mining, and 23% in construction. On the bright side, CAT saw strong demand in residential construction which they expect to continue. Earnings came in at $1.34 per share which was better than the $1.17 that analysts were looking for. Shares of CAT are trading just over 2% lower in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.2%, near 3400
U.S. Crude Oil futures (/CL) +0.57%, near $38.75 a barrel
CBOE Volatility Index (VIX) -0.18%, near 32.40
U.S. Gold Futures (/GC) +0.04%, near $1906 an ounce
Major Economic Reports:
7:30 am CT – Durable Goods Orders
7:55 am CT – Redbook
8:00 am CT – Case-Shiller House Price Index
8:00 am CT – FHFA House Price Index
9:00 am CT – Consumer Confidence
9:00 am CT – Richmond Fed Manufacturing Index
Notable Earnings
Tuesday:
A.M. – BP, CAT, CMI, CNC, CSTM, GLW, HOG, JBLU, LLY, MMM, MRK, PFE, QSR, RTX, SPGI, SWK, TECK, TTM
P.M. – AFL, AKAM, AMD, CYH, FEYE, FISV, FSLR, JNPR, MSFT, OKE
Wednesday:
A.M. – ADP, ANTM, BA, BSX, BX, CME, EPD, GD, GE, HES, MA, NSC, SNE, UPS, YNDX
P.M. – AMGN, CREE, CTSH, CXO, EBAY, ETSY, F, FSLY, GILD, GRUB, KLAC, LVGO, NLY, NOW, PBR, PINS, SPWR, SU, TDOC, URI, V, WDC
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10/26/2020
The Week Ahead
It’s FAANGamina Week
This week’s marquee earnings and economic data reports will take place later in the week, with the majority of the FAANG (Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Alphabet (GOOG, GOOGL)) stocks reporting earnings after market close on Thursday. On Thursday morning, the first print of the third-quarter U.S. gross domestic product (GDP) will be released. Every FAANG stock excluding Netflix (NFLX) will release earnings Thursday afternoon. Big Tech’s run-up has cooled since they last reported results over the summer. From July 30th on, Amazon (AMZN) has underperformed the broader market, rising 5% versus the S&P 500 gaining 6.8%. Alphabet (GOOG, GOOGL) traded about in line with S&P 500, while Facebook (FB) and Apple (AAPL) each gained about 19% over that period.
A Buyout with your Coffee and Donut
Shares of Dunkin’ Brands Group (DNKN) are up more than 18% in the pre-market after the parent of the Dunkin’ and Baskin-Robbins chain said it is in talks to be taken private in a deal worth roughly $8.8 billion. The donut and ice cream chain has held talks to be acquired by the owner of the Buffalo Wild Wings, Sonic, Jimmy John’s and Arby’s restaurant chains. Inspired Brands, a private equity-backed company, backed by Roark Capital could announce the deal as early as today.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -1.04%, near 3416
U.S. Crude Oil futures (/CL) -2.63%, near $38.80 a barrel
CBOE Volatility Index (VIX) +8.50%, near 29.90
U.S. Gold Futures (/GC) +0.01%, near $1905.30 an ounce
Economic Releases (10/26-10/30):
Monday:
7:30 am CT – Chicago Fed National Activity Index
9:00 am CT – New Home Sales
9:30 am CT – Dallas Fed Manufacturing Survey
10:00 am CT – Export Inspections
3:00 pm CT – Crop Progress
Tuesday:
7:30 am CT – Durable Goods Orders
7:55 am CT – Redbook
8:00 am CT – Case-Shiller House Price Index
8:00 am CT – FHFA House Price Index
9:00 am CT – Consumer Confidence
9:00 am CT – Richmond Fed Manufacturing Index
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:30 am CT – International Trade in Goods (Advanced)
7:30 am CT – Retail Inventories (Advanced)
7:30 am CT – Wholesale Inventories (Advanced)
9:30 am CT – EIA Petroleum Status Report
Thursday:
7:30 am CT – Jobless Claims
7:30 am CT – GDP
7:30 am CT – Export Sales
9:00 am CT – Pending Homes Sales Index
9:30 am CT – EIA Natural Gas Report
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Friday:
8:45 am CT – Personal Income and Outlays
7:30 am CT – Employment Cost Index
8:45 am CT – Chicago PMI
9:00 am CT – Consumer Sentiment
12:00 pm CT – Baker-Hughes Rig Count
Major Earnings for the Upcoming Week (10/26-10/30):
Monday:
A.M. – HAS, HCA, OTIS
P.M. – AGNC, CHGG, FFIV, NOV, NXPI, TWLO
Tuesday:
A.M. – BP, CAT, CMI, CNC, CSTM, GLW, HOG, JBLU, LLY, MMM, MRK, PFE, QSR, RTX, SPGI, SWK, TECK, TTM
P.M. – AFL, AKAM, AMD, CYH, FEYE, FISV, FSLR, JNPR, MSFT, OKE
Wednesday:
A.M. – ADP, ANTM, BA, BSX, BX, CME, EPD, GD, GE, HES, MA, NSC, SNE, UPS, YNDX
P.M. – AMGN, CREE, CTSH, CXO, EBAY, ETSY, F, FSLY, GILD, GRUB, KLAC, LVGO, NLY, NOW, PBR, PINS, SPWR, SU, TDOC, URI, V, WDC
Thursday:
A.M. – ADS, ALXN, AMT, APO, BAX, BUD, CMCSA, COP, CS, DD, DNKN, ICE, KDP, IP, KHC, MRNA, NEM, OSTK, PCG, PENN, RCL, RDS/A, RL, SHOP, SO, SPOT, TAP, TPR, TXT, YUM
P.M. – AAPL, ADM, AMZN, ATVI, AUY, COG, CVNA, DVA, DVN, EXAS, FB, FLEX, GOOG, GOOGL, HIG, ILMN, MGM, MSI, OLED, SBUX, SHAK, SKX, STNE, TEAM, TWTR, VRTX, WW, X
Friday:
A.M. – ABBV, CBOE, CHTR, CL, CVX, GT, HON, KKR, LEA, LYB, MO, PSX, UA, UAA, WY, XOM
P.M.– N/A
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*BOLD above indicates important and potential market-moving news and information
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