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- 📊 Let The Earnings Begin
📊 Let The Earnings Begin
Ticker Tea
April 12, 2024
TGIF 🍻
Yesterday the S&P 500 rose by 0.74%, driven by a notable upswing in tech stocks, while the DJIA barely moved, dropping a mere 0.01%. The Nasdaq 100 led gains, jumping 1.65% to a one-week high. This surge was bolstered by Apple's announcement of an extensive redesign of its Mac line, focusing on self-developed AI-enhanced processors, alongside a rally in semiconductor stocks fueled by optimistic Q1 earnings expectations.
Market optimism was further supported by slower-than-expected growth in U.S. producer prices and a steady European Central Bank interest rate, suggesting a potential easing of inflation pressures and future rate cuts. Conversely, rising bond yields, spurred by hawkish comments from several Fed officials and a significant drop in jobless claims, hinted at a tighter monetary stance ahead.
Looking ahead, the Q1 earnings season kicks off TODAY with expectations of a 3.8% year-over-year profit growth among S&P 500 companies. This marks the third consecutive quarter of earnings expansion. Several major banks report today: JPMorgan Chase, Citigroup and Wells Fargo. See the full earnings calendar below 👇
A few equity headlines from yesterday 👇
*Paramount Global (PARA): Closed up +7% after reports of exploring the sale of its VidCon unit.
*Apple (AAPL): Gained over +4% following the announcement of a Mac line overhaul using AI-focused in-house processors.
*Alpine Immune Sciences (ALPN): Jumped +37% upon acquisition announcement by Vertex Pharmaceuticals for approximately $4.9 billion.
*Janux Therapeutics (JANX): Increased +12% after exploring strategic options, including a sale, following takeover interest.
*Constellation Brands (STZ): Up +1% after reporting Q4 EPS of $2.26, topping forecasts and projecting strong future earnings.
*Globe Life (GL): Plunged over -53% following allegations of widespread insurance fraud by Fuzzy Panda Research.
*CarMax (KMX): Dropped -9% after Q4 revenue of $5.63 billion fell short of the $5.82 billion expectation.
*Fastenal (FAST): Declined -6% after Q1 sales missed estimates by $10 million.
*Morgan Stanley (MS): Decreased -3% amid scrutiny from US regulators over potential money laundering prevention lapses.
*Regeneron Pharmaceuticals (REGN): Dipped -1% after a DOJ complaint alleging Medicare reimbursement rate manipulation.
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» Apple ($AAPL) is set to rejuvenate its Mac lineup with AI-focused M4 processors, replacing the current M3 chips and aiming for production on a diverse range of new models. This strategic move, enhancing AI capabilities and memory options up to half-terabyte, is designed to boost declining sales and compete with tech giants like Google ($GOOGL) and Microsoft ($MSFT) in AI advancements. (link)
» Morgan Stanley ($MS) saw its stock tumble 5.3% following reports from the Wall Street Journal about ongoing U.S. investigations into its anti-money laundering practices. The probes, led by the SEC, OCC, and other Treasury branches, are examining the adequacy of the bank's controls, particularly in its wealth management division. (link)
» CarMax ($KMX) experienced its largest stock drop in 18 months, plunging up to 14% after fourth-quarter earnings fell short of analyst expectations due to escalating monthly payments deterring buyers. The company cited vehicle affordability issues driven by inflation, higher interest rates, and stringent lending conditions as key factors behind the disappointing results. (link)
» Rent the Runway ($RENT) saw its shares soar by a record 162% to $19.38 following a fourth-quarter earnings report that exceeded Wall Street's forecasts, signaling potential recovery for the fashion-rental company. The company's recent 1-for-20 reverse stock split, enhanced subscriber services, and strategic inventory shift towards current fashion trends spurred a surge in performance. (link)
» Skyrocketing auto insurance costs are contributing significantly to inflation, with a 22.2% year-over-year increase reported as part of the consumer price index. These escalating costs are exacerbated by high vehicle prices and repair expenses, driven by supply chain issues and advanced vehicle technologies. (link)
» Ford ($F) is slashing prices on certain models of its all-electric F-150 Lightning pickup trucks by $2,000 to $5,500 as it gears up to restart shipments after a pause due to quality issues. The price reduction aims to boost adoption amid slow electric vehicle market growth, with the largest cut on the mid-level Flash trim now priced at $67,995. (link)
» As quarterly earnings approach, the banking sector anticipates benefits for major players like JPMorgan Chase ($JPM) in the extended high-interest rate environment. Meanwhile, smaller banks may feel the squeeze, grappling with funding costs and commercial real estate loan management amidst fewer anticipated Federal Reserve rate cuts. (link)
Major ($10bn+) earnings releases scheduled the next five business days 👇 Click here for a comprehensive list of upcoming earnings releases
Results from yesterday’s economic releases & today’s schedule below 👇 Click here for full schedule & live updates of Wall Street estimates.
“I'm a success today because I had a friend who believed in me and I didn't have the heart to let him down.”
Abraham Lincoln
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