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A Big Week of Earnings
Plus, investors have pulled this much out of Cathie Wood's ARK Invest
Happy Tuesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US Stocks Rose on Tuesday for a second session in a row with the help of strong corporate earnings that overcame investors’ fears of higher rates.
📈 | One Notable Gainer: Shares of Spotify popped 12% and hit a new 52-week high after reporting an earnings beat and showing investors that it’s a consistently profitable company.
📉 | One Notable Decliner: JetBlue’s stock took a 19% dive after the airline lowered its 2024 revenue outlook amid attempts to return to profitability via cost-cutting measures.
📜 | Tomorrow's Trade: A Big Week of Earnings. Scroll down for more.
Plus, here’s why experts are calling hear.com’s new IX hearing aids “the ultimate conversation starter.”
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Allstate (ALL)
🟨🟨🟨⬜️⬜️⬜️ Hamilton Insurance Group (HG)
🟩🟩🟩🟩🟩🟩 Progressive (PGR)
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
GM (+4%) General Motors reported strong first-quarter profits with increased sales of higher-profit vehicles that helped offset a small US sales dip (AP)
GE (+8%) General Electric raised the full-year profit guidance for its aerospace business due to increased revenue from commercial aircraft engines and services (Bloomberg)
DHR (+7%) Shares of life sciences company Danaher popped after it delivered earning beats across its three main businesses (CNBC)
SHW (-2%) Sherwin-Williams’ stock fell after the paint maker turned in lower first-quarter earnings and a 7% decline in sales at its brand locations (Barron’s)
NUE (-9%) Shares of steelmaker Nucor tumbled after reporting first-quarter earnings of $3.46 per share, below the $3.67 consensus estimate (IBD)
TOGETHER WITH HEAR
There’s a reason experts are calling hear.com’s new IX hearing aids “the ultimate conversation starter.” Because they’re the world’s first designed with clarity in conversation in mind.
That means state-of-the-art noise suppression. Lightning-fast dual processing technology.
The most natural listening experience ever. In your day-to-day life, that means effortless conversation, wherever you go.
Test drive hear.com’s IX hearing aids today.
OVERHEARD ON THE STREET
Reuters: EV startup Fisker may have to file for bankruptcy protection within 30 days if it does not get adequate relief to meet its current debt obligations.
The Guardian: Electric and plug-in hybrid car sales will jump to a new global record in 2024 despite slowing growth in some markets.
Fortune: Despite Truth Social’s volatility, Donald Trump is poised to pocket another $1 billion this week.
WSJ: Cathie Wood’s ARK Funds investors are jumping ship, having pulled a net $2.2 billion from ARK’s active funds this year.
BI: Citi claims the price of gold is slated to rocket 25% as the bullion’s appeal rises amid growing tensions in the Middle East and looser monetary policy.
TOMORROW’S TRADE IDEA, TODAY
Planes and PCs
This is a big week on Wall Street, with around 30% of companies in the S&P 500 set to report earnings.
More than 73% of companies that have already reported beat earnings projections. Yet, according to FactSet, first-quarter growth has been flat. Growth was expected to reach 3%.
Among those set to report earnings are tech giant Microsoft (MSFT) and embattled airplane manufacturer Boeing (BA).
Boeing
Recently Boeing has been in the news quite frequently, and not for good reasons. According to LSEG, Boeing is expected to report revenue down 8% year over year.
Shares are down 32% this year. Recently a whistleblower cautioned of safety issues with the company’s 787 Dreamliner, calling for a halt to production. CEO Dave Calhoun is set to step down at the end of this year.
That said, Boeing shares rose on four of the last five earnings days. According to Bespoke, it also historically exceeds earnings nearly 70% of the time.
Boeing is slated to report earnings pre-market on Wednesday. Analysts are watching to see if Boeing could be on the cusp of a comeback.
Microsoft
Microsoft has been making waves in the AI space. It has played a role in keeping the S&P 500 in the black this year. Q1’s earnings report will reveal the financial impact of the launch of its Copilot AI assistant over a full quarter. The company will report earnings after the close on Thursday.
Analysts expect the company’s revenue growth to come in around 10% year over year. According to CNBC’s Jordan Novet, the PC market is gaining ground, which could be a tailwind for Windows license sales. He says analysts will also watch for a higher share of Azure cloud growth from AI workloads.
Microsoft has beaten earnings expectations in six straight quarters, according to Bespoke. However, the stock has fallen after each.
This week’s earnings reports will let us in on the state of some of the biggest companies in the world. Investors and analysts are taking note.
Which stock do you think will outperform following its earnings release? |
TOGETHER WITH HEAR
There’s a reason experts are calling hear.com’s new IX hearing aids “the ultimate conversation starter.” Because they’re the world’s first designed with clarity in conversation in mind.
That means state-of-the-art noise suppression. Lightning-fast dual processing technology.
The most natural listening experience ever. In your day-to-day life, that means effortless conversation, wherever you go.
Test drive hear.com’s IX hearing aids today.
ON OUR RADAR
CNBC: The US Senate approved a $95 billion aid package for Ukraine, Israel, and Taiwan and passed the TikTok Divest or Ban Bill.
Bloomberg: The FTC voted to adopt a near-total ban on non-compete provisions that prohibit workers from switching jobs within an industry.
Forbes: Australian PM Albanese is demanding Elon Musk to take down videos of a mass stabbing at a church. Musk accused Albanese of enabling censorship.
WSJ: The US is drafting sanctions to cut off some Chinese banks from the global financial system to stop Beijing’s commercial support of Russia’s military.
The Hill: According to a new report from the federal government, the plastics industry heats the world four times as much as air travel.
Join the conversation