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Earnings Optimism Lifts Nasdaq and S&P 500

Barry Adams
21 Apr, 2022
New York City

U.S. stock indexes open higher as investors digest the latest earnings from American Airlines, United Airlines, and Tesla. Airlines are estimating profit in the current quarter and in the full-year as passenger traffic rebounds.

Tesla reported a surge in revenues and earnings after vehicle deliveries rose despite the supply chain disruptions. Investors are awaiting to hear comments from Fed Chairman Jerome Powell this afternoon hoping to get more clues on the next course of Fed actions in tackling elevated inflation.

U.S. Treasury 10-year bond yield climbed to 2.85% as real interest rates continue to hover deep in the negative territory with the reported consumer price index indicating inflation at 6.5%.

In Europe, DAX and CAC 40 indexes are up more than 1.5% and FTSE 100 index is trading 0.3% higher.

In Asian markets, the Sensex index in India soared 1.5% after a 3-day market sell-off, Nikkei index in Tokyo closed up 1.2% but the Hang Seng index in Hong Kong closed down 1.2%.

United Passenger Traffic Doubles to 29.3 Million, Estimates Return to Profitability

Scott Peters
20 Apr, 2022
New York City

United Airlines said first quarter 2022 revenues increased 134% to $7.57 billion, net loss was nearly flat at $1.57 billion, and diluted loss per decreased to $4.24 from $4.29 a year ago.

First quarter revenues are still 21% lower than the two-year ago period prior to pandemic. Airline at the end of the quarter had $20 billion and net debt declined by $700 million. Passenger load factor jumped to 72.6% from 56.8% a year ago but still below 80.9% in the first quarter in 2019.

After Hours: Tesla Deliveries Jump, United Passenger Traffic Doubles

Barry Adams
20 Apr, 2022
New York City

Tesla jumped 5% after the automaker reported a sharp rise in revenues, vehicle deliveries, earnings and fall in net debt. The automaker also said available electric vehicles declined to three days of supply from four a year ago. United Airlines jumped 4% after the company reported first quarter revenues of $7.57 billion, 21% decline from two-year ago but estimated profitability in the second quarter.

Tesla Net Revenues Up 81%, Vehicle Production Jumps 69%

Scott Peters
20 Apr, 2022
New York City

Tesla, Inc said first quarter 2022 revenues shot up 81% to $18.8 billion, net income jumped 658% to $3.3 billion, and diluted earnings per share jumped to $2.86 from 39 cents a year ago. Cash and equivalents at the end of the quarter increased to $18 billion and net declined to $0.1 billion. Total vehicle production increased to 305,407 units from 180,338 a year ago.

Netflix Drags Nasdaq and Streamers Lower, IBM Offers Positive Outlook

Barry Adams
20 Apr, 2022
New York City

U.S. stock indexes gained after investors digested a flood of earnings from banks and tech companies.

Netflix plunged 35% on the rising loss of subscribers and dragged internet stocks including Match.com, Wayfair, Etsy, Shopify. Disney, Paramount, CBS, and Discovery stocks also closed lower. P&G and IBM offered a positive view for the rest of the year.

Banks including Truist and M&T gained on a positive earnings outlook but Fifth Third Bancorp earnings fell short of expectations.

Crude oil futures closed unchanged and 10-year U.S. Treasury bond yield inched lower to 2.85%.

New Record Home Price in March, Sales and Inventories Fall

Brian Turner
20 Apr, 2022
New York City

Existing home sales declined in March to a seasonally adjusted annual rate of 5.77 million, a decline of 2.7% from the previous month and 4.5% from a year ago.

Home sales declined for the second month in a row and median existing home sale price increased 15% from a year ago to $375,300 and 87% of homes sold in March were on the market less than a month, according to the data released by the National Association of Realtors.

Single-family existing home sales declined 3.8% from a year ago and the median home price increased 15.2% to $382,000.

Mueller Industries Net Jumps, Reaffirms Annual Growth Outlook

Scott Peters
20 Apr, 2022
New York City

Mueller Industries said first quarter 2022 revenues increased 25% to $1.01 billion, net income surged 150% to $158 million, and diluted earnings per share increased to $2.78 from $1.11 a year ago. The copper alloy and aluminum products maker said the revenues increase was driven by higher commodities prices and volume growth from recently acquired businesses.

M&T Bank Net Falls 19%, Credit Loss Allowance Ratio Held at 1.6%

Scott Peters
20 Apr, 2022
New York City

M&T Bank said first quarter 2022 net interest income declined 8% to $904 million, net income fell 19% to $362 million, and earnings per share fell to $2.62 from $3.33 a year ago. The bank also completed the acquisition of People's United for $8.4 billion on April 1. Loan loss provision in the quarter was $10 million compared to $25 million a year ago and non-performing loans increased to $2.13 billion from $1.96 billion a year ago.

Afternoon Movers: Avis Budget Group, Baker Hughes, IBM, M&T Bank, Mueller Industries

Scott Peters
20 Apr, 2022
New York City

IBM gained 8% after the company reported quarterly revenues gained 7.7% from a year ago and estimated higher annual revenues in mid-single digit.

Avis Budget Group soared 13% after Barclays revised its rating higher ahead of earnings in two weeks.

Baker Hughes dropped 5% after the company reported lower than expected earnings and revenues.

M&T Bank soared 9% after the mid-size bank reported better than expected earnings.

Mueller Industries surged 9% after quarterly earnings more than doubled.

Movers: Halliburton, NetGear, Netflix, Plug Power, Shopify, Wayfair

Barry Adams
20 Apr, 2022
New York City

Netflix plunged as much as 37% after the streaming service guided a loss of additional 2 million in the current quarter. Netflix's cautious outlook sparked widespread losses in other streaming services providers including Disney, Paramount and Discovery and in Internet-based growth stocks Shopify and Wayfair. NetGear regained some of the losses after reporting weaker than expected quarterly revenues. Halliburton reported 35 cents a share. Plug Power agreed to provide liquid green Hydrogen to power lift trucks at Walmart fulfillment centers.

Manpower Net Jumps 48% On Improved Business Mix

Scott Peters
20 Apr, 2022
New York City

Manpower Group said first quarter 2022 revenues increased 4% to $5.14 billion, net income soared 48% to $91.6 million and diluted earnings per share jumped 51% to $1.68 from $1.11 a year ago. The recruitment services provider guided second quarter earnings per share range between $2.31 and $2.39 including estimated unfavorable currency impact of 19 cents and excluding integration costs between $4 million and $6 million.

Trusit Financial Net Interest Margin Falls

Scott Peters
20 Apr, 2022
New York City

Truist Financial Corporation said first quarter 2022 revenues declined 2.9% to $5.4 billion, net income declined 7% to $1.32 billion, diluted earnings per share increased to 99 cents from 98 cents a year ago. Total non-performing assets edged slightly lower to $1.14 billion and total loans 30-89 past due days increased 19% to $2.1 billion. Return on average assets declined to 1.07% from 1.17% and net interest margin fell to 2.76% from 3.01%.

P&G Lifts Earnings Outlook Despite Higher Commodities and Freight Cost

Scott Peters
20 Apr, 2022
New York City

The Procter & Gamble Company said fiscal year third quarter 2022 revenues increased 7% to $19.4 billion, net income rose 4% to $3.4 billion, and diluted earnings per share increased 5% to $1.37 from $1.30 a year ago. The consumer products company reported quarterly sales increased in all divisions led by 13% in Health Care, 7% each in Fabric and Home Care, and Family and Baby, Feminine, and Family Care, 3% in Grooming, and 2% in Beauty segment. In the quarter, the company returned $3.4 billion to shareholders including $2.2 billion of dividend payments and $1.2 of share repurchase.

IBM Guides Higher Annual Revenues and $10 Billion Cash Flow

Scott Peters
20 Apr, 2022
New York City

IBM said first quarter 2022 revenues increased 7.6% to $14.2 billion, net income declined 12.5% to $733 million, and diluted earnings per share fell to 81 cents from $1.06 a year ago. The tech company reported broad improvement in sales led by 12% rise in software division, 13% increase in consulting services, and hybrid cloud revenues rose 14%. Infrastructure segment revenues fell 2%. The company guided 2022 revenues at the high end of the mid-single digit and free cash flow between $10 billion and $10.5 billion.

S&P 500 and Nasdaq Scale Higher on Positive Earnings

Barry Adams
20 Apr, 2022
New York City

U.S. stock index futures pointed to a higher opening as investors digested a flood of earnings from major companies. Crude oil traded flat and bond yields were on the defensive in the early trading. Netflix plunged 28% after the company reported quarterly net subscribers declined for the first time in a decade and guided higher losses in the current quarter. IBM earnings were ahead of expectations and P&G guided higher sales and passed on higher costs to consumers. Tesla and United Airlines are scheduled to release earnings after the market closes.

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