Wake Up Call
- Hello ! US equity futures were cautiously lower Wednesday as traders search for fresh clues on the direction of future monetary policy. A Bloomberg dollar gauge advanced for a third day, posting its longest winning streak since mid-April. All G-10 currencies retreated against the greenback, with the Australian dollar and Japanese yen falling the most. The benchmark Treasury yield rose two basis points to 4.48%.
- Investors winding down from earnings season are now unsure of what comes next after 3% of gains for the S&P 500 in May. US policymakers are signaling that bets on a pivot to easier policy may be premature, with Federal Reserve Bank of Minneapolis President Neel Kashkari saying it’s likely the central bank will keep rates where they are “for an extended period of time.”
- ON TAP - Wholesale inventories, due at 3pm UK, are seen dropping 0.4% in the second estimate for March. Investors will be monitoring comments from FedVice Chair Philip Jefferson, Boston Fed President Susan Collins and Governor Lisa Cook.
Wall Street Movers
- (+) ARISTA NETWORKS +7.30% on strong AI demand trends / Q1 Rev $1.57bn ($1.55bn exp) / EPS $1.99 ($1.73 exp) / Sees Q2 rev 4cst $1.62bn - $1.65bn ($1.62bn exp) / Sees Q2 adj gross margin about 44% (43% exp) / Said that it has finished its previous $2bn share buyback program and its board of directors has approved an additional program to repurchase up to $1.2bn worth of shares.
- (+) ELANCO ANIMAL HEALTH +7.50% boost Q2 adj EPS view 23-26c (est 24c) & rev $1.15-1.17bn (est 1.15bn) / Q1 adj EPS 34c (est 26c) / rev $1.21bn (est 1.18bn)
- (-) ELECTRONIC ARTS -3% Outlook Disappoints Amid Fewer Game Releases / Q4 net bookings $1.67bn ($1.77bn exp) / Adj EPS $1.37 ($1.52 exp) / Authorized a $5bn buyback program over three years / Sees Q1 net bookings 4cst $1.15bn - $1.25bn ($1.45bn exp) / Sees 2025 net bookings $7.3bn - $7.7bn ($7.77bn exp) / Sees Q1 adj EPS $0.30 - $0.50 ($0.80 exp)
- (+) GOPRO +3.20% Q1 rev $156mn (est 147mn) / adj loss/sh 21c (est 25c) / sees growing subscribers in 2024 to 2.5-2.6m / CEO is asking for patience as the company looks to restore growth and profitability over the long term.
- (-) INTEL -2.20% Q2 rev expected to remain in original range of $12.5-13.5bn (exp 13.03bn) / expects FY24 rev & EPS to grow Y/Y vs 2023 / Says US informed co. it was revoking certain licenses for exports of consumer related items to a customer in China. It was reported on Tuesday that the Biden administration has revoked export licences that allow INTEL and QUALCOMM to supply Huawei with semiconductors, as Washington increases the pressure on the Chinese telecoms equipment company, according to FT sources. The commerce department’s move affects the supply of chips for Huawei’s laptop computers and mobile phones >> QCOM -2.20%
- (+) LYFT +6% Q1 rev $1.28bn ($1.17bn exp) / gross bookings $3.69bn ($3.59bn exp) / adj Ebitda $59.4mn ($54.6mn exp) / active riders 21.9mn (21.76mn exp) / Sees Q2 gross bookings about $4bn - $4.1bn ($4.02bn exp) / Sees Q2 adj EBITDA $95mn - $100mn ($85.2mn exp). Analysts said there were indications of a healthier marketplace and sturdy consumer demand. They are now looking ahead to the company’s June investor day for more details on market trends.
- (=) OCCIDENTAL PETROLEUM -0.5% Q1 rev $5.98bn ($6.62bn exp) / EPS $0.63 ($0.58 exp) / Q1 capex $1.8bn ($1.65bn exp) / Still sees FY capex $6.4bn - $6.6bn ($6.69bn exp) / Maintains FY production forecast.
- (-) RIVIAN -6% Q1 rev $1.20bn ($1.18bn exp) / loss/sh $1.24 (est loss $1.15) / vehicles delivered 13,588 (12,475 exp) / Still sees FY production 57,000 vehicles (57,449 exp) / Suill sees FY adj Ebitda loss -$2.70B (loss -$2.91bn exp)
- (-) SHOPIFY -18% surprise Q1 net loss, Hit From Logistics Unit Sale. Gave an outlook for Q2 that included its gross margin decreasing by roughly 50bps from Q1
- (+) TEVA +3.20% Q1 rev $3.82bn (est 3.75bn) / FY24 EPS view $2.20-2.50 (est 2.41) / Teva, Medincell succeed in late-stage trial for injectable schizophrenia therapy
(-) TRIPADVISOR -15% after the online travel firm said a special committee has determined that there is no transaction with a third party that is in the best interests of the company and its stockholders. Q1 rev $395mn (est $394mn) / adj EPS 12c (4.8c)
- (-) TWILIO -8% Q1 rev $1.05bn ($1.03bn exp) / EPS $0.80 ($0.60 exp) / Sees Q2 revenue $1.05bn-1.06bn ($1.08bn exp) on weak entreprise spending
- (-) UBER -6% Q1 gross bookings $37.65bn (est 37.97bn) / rev $10.13bn (est 10.11bn) / adj Ebitda $1.38bn (est 1.32bn) / monthly active platform consumers 149mn (est 149.77mn) / sees Q2 gross bookings $38.75-40.25bn (est 40.04bn)
At A Glance
(+) APPLE China iPhone shipments at 3.75mn in March (vs 2.4mn in February), +12%.
(+) CIRRUS LOGIC Q4 EPS $1.24 (est 64c) / net sales $372mn (317mn) / sees Q1 rev $290-350mn (est 303mn)
(+) FOX CORP Q3 adj EPS $1.09 (est 98c) / rev $3.45bn (est $3.46bn) / adj Ebitda $891mn (est $796mn)
(-) MATCH Q1 rev $860mn (856mn exp) / sees Q2 rev $850-860mn (est 882mn), with the company pointing to weakness in its Tinder business.
(-) MCKESSON Q4 rev $76.36bn ($79.17bn exp) / EPS $6.38 ($6.31 exp) / Sees 2025 adj EPS $31.25 - $32.05 ($30.74 exp)
(-) NYCB long-term IDR was downgraded by Fitch to BB from BB+.
(-) TESLA US prosecutors are reportedly examining whether Tesla committed securities and wire fraud in criminal probe of self-driving claims, according to sources cited by Reuters
(+) WYNN RESORTS Q1 adj EPS $1.59 (est $1.33) / adj property Ebitdar $647mn (est 603mn) / Board of Directors has declared a cash div $0.25/sh, payable on May 31, 2024.
(-)ZOOMINFO Q1 adj EPS 6c (est 23c) / rev $310mn (est 309mn) / sees FY adj EPS $1-1.02 (est $1)
Key Events (UK Time)
Wednesday
15:00 US Wholesale Trade Sales & Inventories
16:00 Fed's Jefferson Speaks About Careers in Economics
16:45 Fed's Collins Speaks to MIT Students
17:30 Fed's Cook Speaks on Financial Stability
Thursday
13:30 US Initial Jobless Claims
19:00 Fed's Daly Participates in Fireside Chat
Friday
14:00 Fed's Bowman Speaks on Financial Stability Risks
15:00 Fed's Logan Participates in Moderated Q&A, U. of Michigan Sentiment & 1Yr and 5-10Yr Inflation
17:45 Fed's Goolsbee Speaks in Moderated Q&A
18:30 Fed's Barr Gives Commencement Speech
Game Of Corporate Actions
DIV EX DATE
- Today : Resmed ($0.48)
- Tomorrow : AEP ($0.88); Cencora ($0.51); Charles Schwab ($0.25); Howmet Aerospace ($0.05); IBM ($1.67); JB Hunt ($0.43); Parker-Hannifin ($1.63); Paychex ($0.98); Pfizer ($0.42); PPG Industries ($0.65); Rollins ($0.15); Truist Financial ($0.52); Walmart ($0.2075); Wells Fargo ($0.35)
TODAY EARNINGS
- Results aft mkt : Airbnb ; Celanese ; News Corp
TOMORROW
- Results bef mkt : Charles River ; Constellation Energy ; Tapestry ; Warner Bros
- Results aft mkt : Akamai