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📊 Retailers in the Spotlight

📊 Retailers in the Spotlight

Ticker Tea
February 20, 2024

Good morning ☀️ Retailers (Walmart, Home Depot, Keurig, Dillards, La-Z-boy, Wayfair) kick off earnings releases this week as well as the long awaited Nvidia on Wednesday.

Earlier this morning, Walmart released earnings which beat street estimates. They also announced their intention to buy Vizio for a 21% premium at $2.3bn and increased their dividend 9% (link).

Home Depot also released earnings (link) this morning which beat street estimates, despite lower-than-expected sales.

» Earnings Today: Walmart, Home Depot, Palo Alto Networks, CoStar, (Calendar & Estimates 👇)

» Economic Data Today: Philly Fed Non-Manufacturing Activity & Leading Index (Calendar & Estimates 👇)

» Fed Speakers Today: Bowman and Bostic

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» Capital One ($COF) has announced its agreement to purchase Discover Financial Services ($DFS) in a groundbreaking $35 billion all-stock transaction, setting the stage to become the largest credit card issuer in the U.S. by loan volume. The deal, characterized by a 26.6% premium for Discover shareholders, aims for closure between late 2024 and early 2025, promising significant market reshaping and pre-tax synergies of $2.7 billion. (blog)

» Nintendo experienced a significant stock price drop of up to 8.8% following the announcement that the anticipated successor to the Switch console will be postponed to early 2025, marking the company's most substantial intraday decline since October 2021. This delay impacts investor sentiment, particularly after the stock reached an all-time high last week with high expectations for a 2024 release of the new gaming console. (blog)

» The "Magnificent 7," comprising tech giants like Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, now boast financial power surpassing nearly all G20 nations, igniting debates on market concentration risks. With their combined market cap positioning them as a global economic powerhouse, analysts caution against the potential for market volatility and missed investment opportunities outside this elite group. (blog)

» Wall Street banks, including giants like Goldman Sachs ($GS) and Barclays ($BARC), are aggressively pursuing leveraged buyout financing deals, venturing into riskier subordinated debt offerings and innovative financing strategies to reclaim dominance from direct lenders. This shift comes as banks aim to capitalize on improved loan and junk-bond markets, outmaneuvering private credit firms with competitive pricing and flexible financing options. (blog)

» Despite anticipations of a shift away from cash holdings, a staggering $6 trillion wall of cash remains steadfast, bolstered by substantial inflows into money-market funds and corporate cash reserves. This enduring preference for cash, amidst delayed Federal Reserve rate cuts, underscores its continued attractiveness for investors and corporations alike, challenging previous market expectations. (blog)

» US regulators are introducing sweeping reforms to enhance the transparency and resilience of the over $26 trillion US Treasuries market, amid concerns over its opacity and susceptibility to disruptions. These changes, including mandatory dealer registration for major players and increased disclosure requirements, aim to fortify the market against the backdrop of rising US debt and market liquidity challenges. (blog)