Wake Up Call
- Hello ! Stock futures remained lower after data pointed to a still solid labor-market that reinforced the case for the Federal Reserve to hold off on interest-rate cuts. ADP says US firms added 192k jobs in April (est 183k)
- As the Federal Reserve signals it plans to delay interest rate cuts, investors are counting on a revival in corporate buybacks to help sustain this year’s stock market rally. Strategists at Goldman expect total share repurchases by American firms to surge 13% to $934bn in 2024 before crossing $1 trillion next year, backed by robust economic growth. That would mark a rebound from the 13% decline in 2023, when concerns about a potential recession led finance chiefs to preserve cash.
- LOOKING AHEAD - FOMC (No change expected + focus on Powell's tone & any balance sheet updates) ; The ISM Manufacturing PMI is expected to fall a little to 50.0 from 50.3, while prices paid are seen easing to 55.0 from 55.8. JOLTs data (for March) are expected to show job openings falling to 8.686mn from 8.756mn. Analysts will look to the quits rate, which was at 2.2% in February, after revisions. The Treasury's QRA announcement is also due today.
Wall Street Movers
- (-) AMD -6.60% Q2 Rev $5.5bn ($5.45bn exp) / EPS $0.62 ($0.61 exp) / Sees Q2 rev $5.4-6bn ($5.72bn exp) / Sees Q2 adj gross margin about 53% (53% est), weighed down by lackluster demand for chips used in video game hardware. Also raised its forecast for its MI300 AI accelerator product, which is now expected to drive upwards of $4bn in revenue this year (up from an earlier projection of more than $3.5bn)
- (+) AMAZON +1.70% Q1 Rev $143.31bn ($142.59bn exp) & EPS $0.98 ($0.83 exp), a sign that the retailer’s most profitable unit is recovering from a slump as businesses resume spending on technology projects, including AI services / oper margin 10.7% (7.63% est) / Sees Q2 net sales $144-149bn (Est $150.21bn) / Sees Q2 oper income $10-14bn (Est $12.56bn)
- (-) CDW CORP -6.90% Q1 dj EPS $1.92 (est 2.15) / net sales $4.87bn (est 5bn)
- (-) CVS HEALTH -11.60% cut FY adj EPS view at least $7 (est $8.29) on higher medical cost / Q1 adj EPS $1.31 (est 1.69) / net rev $88.44bn (est 89.33bn) >> WBA -1.30%
- (+) DUPONT DE NEMOURS +4.50% Q1 adj EPS 79c (est 65c) / net sales $2.93bn (est 2.83bn) / Sees Q2 op Ebitda about $710mn (est 684mn) amid volume recovery.
- (-) ESTEE LAUDER -5.60% Q3 adj EPS 97 (est 48c) / adj net sales $3.94bn (est 3.91bn) / Cut Q4 adj EPS view 19c-29c (est 77c) as well as FY adj EPS guidance $2.14-2.24 (est 2.25)
- (+) J&J +2.30% will ask thousands of people suing over its allegedly tainted baby powder to vote in favor of a settlement that would allow the company to resolve all litigation for $11bn — $2.1bn more than it offered last year.
- (-) KRAFT HEINZ -4.3% Q1 net sales $6.41bn (est 6.43) as volume trends disappoint / adj EPS 69c (est 69c) / adj Ebitda $1.50bn (est 1.52) / Still sees FY adj EPS $3.01-3.07 (est $3.04).
- (-) MASTERCARD -4.50% Q1 net rev $6.3bn (est 6.34bn) / adj EPS $3.31 (est 3.23) / Cross-border volumes +18% (est +17.1%) / Now sees FY net rev low end of low-double digits >> V -0.60%
- (-) NORWEGIAN CRUISE LINE -4% Q1 adj EPS 16c (est 11c) / rev $2.19bn (est 2.22) / Passenger Cruise Days 6.11mn, +11% y/y (est 6.13mn) / Boosts FY adj EPS view about $1.32 (est 1.28)
- (+) NYCB +15% Q1 provision for credit losses $315mn (249mn est) / total deposits $74.86bn (est 79.29) / Sees elevated loan loss provision level over rest of 2024/ Talks about asset sales, says found $5bn opportunity
- (+) PFIZER +1.20% Q1 rev $14.9bn (est 13.91) / No share repurchases planned in 2024 / Boosts FY24 adj EPS range view $2.15-2.35 vs $2.05-2.25 (est 2.76) after completing its deal with the US government to take doses of its Covid pill back.
- (+) PINTEREST +16% Q1 Rev $740mn ($700.3mn exp) / EPS $0.20 ($0.14 exp) / Monthly active users 518mn (503.75mn exp) / Raises FY rev forecast $835-850mn ($828mn exp), bolstered by a push into shopping and a focus on Gen-Z users
- (-) SKYWORKS SOLUTIONS -14% Q2 rev $1.05bn (est 1.05bn) / adj EPS $1.55 (est 1.53) / Maintains qtrly div 68c/sh / Sees Q3 EPS $1.21 (est 1.47), spurring analysts to cut their ratings and price targets on the stock. Analysts noted weak demand weighing on Skyworks’ mobile business as well as worries over its exposure to Apple, after the company flagged on the call that it is expecting to lose share at its biggest customer.
- (-) STARBUCKS -12% Q2 Rev $8.56bn ($9.13bn exp) / EPS $0.68 ($0.80 exp) / Comparable sales -4% (Est +1.46%) / China comparable sales -11% (Est -1.62%) / Disastrous quarter that saw a slowdown in store visits across the world
- (-) SUPER MICRO -11% Q3 Rev $3.85bn ($3.95 exp), disappointing investors who had sky-high expectations that the server maker’s business would benefit from AI-related demand / EPS $6.65 ($5.78 exp) / Sees Q4 adj EPS $7.62 - $8.42 (Est $6.97) / Sees Q4 net sales $5.1 - $5.5bn (Est $4.73bn)
- (-) YUM BRANDS -4.80% Q1 adj EPS $1.15 (est 1.21) / rev $1.60bn (est 1.71bn) / Pizza Hut comp sales -7% (est -3.61%)
At A Glance
- ADP Q3 rev $5.3bn (est 5.22bn) / adj EPS $2.88 (est 2.79) / Sees FY adj EPS +10% to +12%
- AMCOR Q3 adj EPS 17.8c (est 16c) / sales $3.41bn (est $3.50) / Sees FY24 adj EPS 68.5c-71c (est 69c)
- BOSTON PROPERTIES Q1 FFO $1.73 (est 1.73) / Cut FY FFO/sh $6.98 to $7.10 (est 7.13) / Cut Q2 FFO/sh $1.70-1.72 (est 1.78)
- CAESARS Q1 loss/sh 73c (est loss 8c) / SS net rev $1.37bn (est 1.35bn)
- CHESAPEAKE ENERGY Q1 adj EPS $0.56 (est 0.60) as natgas prices remain low
- CLOROX Q3 adj EPS $1.71 (1.36 est) / net sales $1.81bn (est 1.87bn) / Sees 2024 net sales to be down low single digits, at low end of range, reflecting divestiture of Argentina business
- DIAMONDBACK Q1 adj EPS $4.50 (est 4.40) / adj Ebitda $1.55bn (est $1.53bn) / Receives second FTC request in $26bn Endeavor deal
- FORD recalls 242,669 US vehicles, NHTSA says
- GARMIN Q1 rev $1.38bn (est 1.25) / pro forma EPS $1.43 (est 1.01) / Backs FY24 pro forma EPS view $5.40 (est 5.39)
- GLOBAL PAYMENTS Q1 adj EPS $2.59 (est 2.57) / adj net rev $2.18bn (est 2.18) / Sees FY adj EPS $1.54-11.70 (est $11.61) & rev $9.17-9.30bn (est 9.24)
- JOHNSON CONTROLS Q2 adj EPS cont ops 78c (est 75c) / Keeps FY24 guidance / Sees Q3 adj EPS $1.05-$1.10 (est 1.12)
- MARRIOTT Q1 rev $5.98bn (est 5.94) / adj EPS $2.13 (est $2.16) as softening US demand growth weighed on results.
- MONDELEZ Q1 adj EPS 95c (est 89c) / net rev $9.29bn (est $9.16bn) / Sees FY Organic Net Rev +3% to +5% (est +5.19%)
- PARAMOUNT, owner of CBS and MTV, agreed to extend contract renewal talks with pay-TV provider Charter Comm preventing its channels from going dark on the cable service, people with knowledge of the matter said.
- PPL Q1 adj EPS $0.54 (est 0.50) / Sales $2.30bn (est 2.06) / Maintains FY ongoing EPS forecast
- PRUDENTIAL FINANCIAL Q1 adj op EPS $3.12 (est 3.13)
- STRYKER Q1 adj EPS $2.50 (est $2.35) / net sales $5.24bn (est 5.09bn) / Boosts FY adj EPS 4cst $11.85-12.05 (est 11.87).
Key Events (UK Time)
Wednesday
14:45 S&P Global US Manufacturing PMI
15:00 JOLTS Job Openings, ISM Manufacturing
19:00 FOMC Rate Decision (Upper & Lower Bound); FOMC Ends Two-Day Meeting; Interest on Reserve Balances Rate
19:30 Fed Chair Powell Holds Post-Meeting Press Conference
Thursday
13:30 US Initial Jobless Claims
15:00 US Factory Orders; Durable Goods Orders; Cap Goods Orders & Ship Nondef Ex Air
Friday
13:30 US Change in Nonfarm Payrolls; Change in Manufact. Payrolls; Unemployment Rate
14:45 S&P Global US Services & Composite PMI
15:00 ISM Services Index
Game Of Corporate Actions
DIV EX DATE
- Today : Entergy ($1.13); DR Horton ($0.3)
- Tomorrow : Norfolk Southern ($1.35); Constellation Brandz ($1.01); Lamb Weston ($0.36); Carrier Global ($0.19)
TODAY EARNINGS
- Results aft mkt : Albemarle ; Allstate ; American International I; American Water Works ; ANSYS ; APA ; CF Industries ; CH Robinson ; Cognizant Technology Solutions; Corteva ; Devon Energy ; DoorDash ; eBay ; Etsy ; Eversource Energy; First Solar ; Host Hotels & Resorts ; Marathon Oil ; MetLife ; MGM Resorts; Mid-America Apartment Communit; Monolithic Power Systems ; Mosaic ; Paycom Software ; PTC ; Qorvo ; QUALCOMM ; Ventas ; VICI Properties
TOMORROW
- Results bef mkt : AMETEK ; Aptiv; Baxter International ; Becton Dickinson ; BorgWarner ; Cardinal Health ; Church & Dwight ; Cigna Group; ConocoPhillips; Cummins ; Dominion Energy ; Exelon ; Fortinet ; Howmet Aerospace ; Huntington Ingalls Industries; Intercontinental Exchange ; IQVIA ; Iron Mountain ; Kellanova; Kimco Realty ; Linde; Moderna ; Moody's ; Parker-Hannifin ; Pinnacle West Capital ; Quanta Services ; Regeneron Pharmaceuticals ; Southern ; Stanley Black & Decker ; Targa Resources ; Teleflex ; Vulcan Materials ; Westrock ; Xylem ; Zimmer Biomet ; Zoetis
- Results aft mkt : AES ; Alliant Energy ; Ameren ; Amgen ; Apple ; Booking ; Camden Property Trust; Consolidated Edison ; Coterra Energy ; DaVita ; Digital Realty Trust ; EOG Resources ; Expedia ; Federal Realty Investment Trus; Hologic ; Illumina ; Ingersoll Rand ; Live Nation Entertainment ; MercadoLibre ; Monster Beverage ; Motorola Solutions ; Pioneer Natural Resources ; Regency Centers ;