- 27 Jul '22 at 2:29 pm #40928
Meta Platforms Q2 22 Earnings:
– EPS: $2.46 (est $2.54)
– Revenue: $28.82Bln (est $28.935Bln)
– Q2 Ad Rev. $28.15b, Est. $28.53b
– Q2 Facebook Monthly Active Users 2.93b, Est. 2.95b
– Sees Q3 Rev. $26b To $28.5b, Est. $30.32b
– Guidance Assumes FX Will Be About 6% Headwind
$META 166.76▼ 2.82 (1.66%) After Hours27 Jul '22 at 2:30 pm #40929
Qualcomm Q3 22 Earnings:
– Adj EPS: $2.96 (est $2.862)
– Revenue: $10.93Bln (est $10.865Bln)
– Sees Q4 Rev. $11b To $11.8b, Est. $11.92b
– Sees Q4 Adj Eps $3 To $3.30, Est. $3.26
$QCOM 146.95▼ 6.47 (4.22%)After Hours ·27 Jul '22 at 2:31 pm #40930
156.10▼ 0.69 (0.44%) After Hours on QCOM28 Jul '22 at 6:33 am #40973
U.S. Treasuries mixed start with the 2-yr note expected to show relative strength in the early going. Treasury futures fell after yesterday’s cash close, facing more pressure during the Asian session.
The early weakness is lifting the 30-yr yield back to this week’s high while yields on other tenors remain below their highest levels of the week.
Overseas, the People’s Bank of China is planning a $148 bln bailout of property developers, according to FT, while the spread between Italy’s 10-yr yield and Germany’s 10-yr yield is rising back to its high from mid-June.
U.S. Treasury will sell $38 bln in 7-yr notes this afternoon. The U.S. Dollar Index is up 0.5% at 106.96.
2-yr: -5 bps to 2.95%
3-yr: -1 bp to 2.91%
5-yr: UNCH at 2.80%
10-yr: +4 bps to 2.77%
30-yr: +6 bps to 3.06%28 Jul '22 at 6:34 am #40974
Data out Today:
8:30 ET: Advance Q2 GDP (Briefing.com consensus 0.5%; prior -1.6%), advance Q2 GDP Deflator (Briefing.com consensus 7.1%; prior 8.2%), weekly Initial Claims (Briefing.com consensus 253,000; prior 251,000), and Continuing Claims (prior 1.384 mln)
10:30 ET: Weekly natural gas inventories (prior +32 bcf)
13:00 ET: $38 bln 7-yr Treasury note auction results28 Jul '22 at 6:35 am #40975
Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note.
Japan’s Nikkei: +0.4%,
Hong Kong’s Hang Seng: -0.2%,
China’s Shanghai Composite: +0.2%,
India’s Sensex: +1.9%,
South Korea’s Kospi: +0.8%,
Australia’s ASX All Ordinaries: +1.1%.28 Jul '22 at 6:36 am #40976
South Korea’s August Manufacturing BSI Index 80 (last 82)
Australia’s June Retail Sales 0.2% m/m (expected 0.5%; last 0.9%). Q2 Import Price Index 4.3% qtr/qtr (last 5.1%) and Export Price Index 10.1% qtr/qtr (last 14.6%)
New Zealand’s July ANZ Business Confidence -56.7 (last -62.6)
Mitsubishi Motors raised its outlook for FY22 and noted that the chip shortage has eased more than expected.
Hong Kong will lower its growth forecast.
FT reported that the People’s Bank of China is planning a $148 bln bailout of property developers.
Australia’s treasurer said that inflation is expected to peak at 7.75% in Q4.28 Jul '22 at 6:36 am #40977
Major European indices trade on a mixed note with Spain’s IBEX (-1.0%) showing relative weakness.
STOXX Europe 600: +0.5%,
Germany’s DAX: UNCH,
U.K.’s FTSE 100: -0.1%,
France’s CAC 40: +0.1%,
Italy’s FTSE MIB: +1.1%,
Spain’s IBEX 35: -1.0%.28 Jul '22 at 6:37 am #40978
Eurozone’s July Business and Consumer Survey 99.0 (expected 102.0; last 103.5)
France’s June PPI 1.3% m/m (last -0.3%)
Italy’s May Industrial Sales 1.4% m/m (last 2.8%); 23.6% yr/yr (last 22.0%). June non-EU trade deficit EUR2.82 bln (last deficit of EUR260 mln)
Spain’s June Retail Sales 1.0% yr/yr (expected 1.3%; last 1.3%). Q2 Unemployment Rate 12.48% (expected 13.00%; last 13.65%). July Business Confidence -5.2 (last 2.3)
European Central Bank policymaker Visco said that the next ECB rate hike will depend on the trend in the real economy and that it is too early to say where rates will peak.
The spread between Italy’s 10-yr yield and Germany’s 10-yr yield is rising back to its high from mid-June.
Germany is likely to report hotter than expected July PPI at 8:00 ET after a sharp increase in a key regional inflation report.28 Jul '22 at 6:37 am #40979
Meta Platforms (META 162.72, -6.86, -4.1%): misses by $0.09, reports revs in-line, DAUs increased 3%; guides Q3 revs below consensus, lowers 2022 expense guidance; announces CFO transition
Ford (F 14.07, +0.88, +6.7%): beats by $0.24, beats on revs; co raises quarterly dividend by 50% to $0.15/sh, new yield is 4.6%
Qualcomm (QCOM 148.25, -5.17, -3.4%): beats by $0.09, reports revs in-line; guides Q4 EPS in-line, revs below consensus
Merck (MRK 91.75, +0.52, +0.6%): beats by $0.16, beats on revs; guides FY22 EPS below consensus, raises revs in-line
Pfizer (PFE 52.40, +0.85, +1.7%): beats by $0.26, beats on revs; reaffirms FY22 EPS guidance, revs guidance
Etsy (ETSY 102.87, +7.37, +7.7%): beats by $0.19, beats on revs; GMS in line with guidance; guides Q3 revs in-line
Teladoc (TDOC 32.40, -10.84, -25.1%): beats by $0.15, reports revs in-line; guides Q3 EPS below consensus, revs in-line; reaffirms FY22 revs guidance
Lam Research (LRCX 462.00, -4.66, -1.0%): beats by $1.50, beats on revs; guides Q1 EPS above consensus, revs in-line
ServiceNow (NOW 419.89, -28.71, -6.4%): beats by $0.07, reports revs in-line
Columbia Sportswear (COLM 73.50, -1.19, -1.6%): beats by $0.08, misses on revs; guides FY22 EPS below consensus, revs below consensus due to macroeconomic conditions
O’Reilly Auto (ORLY 671.90, -17.50, -2.5%): misses by $0.21, reports revs in-line; cuts FY22 EPS, revs, comps guidance
Best Buy (BBY 71.75, -2.74, -3.7%): expects Q2 FY23 comparable sales1 to decline approximately 13%, with revenue approximately 7.5% higher than pre-pandemic Q2 FY20; downgraded to Hold from Buy at Jefferies
Honeywell (HON 185.70, +2.04, +1.1%): beats by $0.07, beats on revs; guides FY22 EPS in-line, revs in-line; names Vimal Kapur as COO effective immediately
Southwest Air (LUV 38.40, -2.37, -5.8%): beats by $0.12, reports revs in-line
Spirit Airlines (SAVE 25.27, +0.91, +4.0%): has terminated the merger agreement with Frontier Group (ULCC); JetBlue Airways and Spirit Airlines announce that their boards of directors have approved a definitive merger agreement under which JetBlue will acquire Spirit for $33.50/share in cash
Stanley Black & Decker (SWK 101.26, -16.19, -13.8%): misses by $0.36, misses on revs; slashed FY22 EPS below consensus28 Jul '22 at 7:10 am #40980CautiousInvestorKeymaster
2QTR GDP – NEGATIVE 0.9%
ARE WE IN A RECESSION?
NO = White House & DEMS
NO = Industrial MEDIA complex
NO = FED
NO = WALL STREET
YES = Republicans
YES = Main Street
YES = Text book classic definition28 Jul '22 at 2:02 pm #40988CautiousInvestorKeymaster28 Jul '22 at 11:13 pm #41019
Market participants will receive the following economic data Friday:
8:30 ET: June Personal Income (Briefing.com consensus 0.5%; prior 0.5%), Personal Spending (Briefing.com consensus 0.8%; prior 0.2%), PCE Prices (Briefing.com consensus 1.0%; prior 0.6%), Core PCE Prices (Briefing.com consensus 0.6%; prior 0.6%), and Q2 Employment Cost Index (Briefing.com consensus 1.1%; prior 1.4%)
9:45 ET: July Chicago PMI (Briefing.com consensus 56.2; prior 56.0)
10:00 ET: Preliminary University of Michigan Consumer Sentiment survey (Briefing.com consensus 51.1; prior 51.1)28 Jul '22 at 11:14 pm #41020
Before Friday’s open, market participants will receive quarterly results from AbbVie (ABBV), Church & Dwight (CHD), Colgate-Palmolive (CL), Grainger (GWW), and Newell Brands (NWL). Also, Dow components Chevron (CVX), Exxon Mobil (XOM), and Procter & Gamble (PG).28 Jul '22 at 11:15 pm #41021
Amazon (AMZN) reports Q2 (Jun) results, beats on revs and operating income; guides Q3 revs in-line… AMZN up 12.3%
Apple (AAPL) reports top line beat on better than expected iPhone revenue; wearables and Macs miss estimates; CEO Tim Cook says supply constraints came in slightly below the range of $4-8 billion guidance range… AAPL up 4.0%
First Solar (FSLR) beats by $0.65, beats on revs; lowers FY22 EPS guidance, raises revenue guidance… FSLR up 15.3%
Five9 (FIVN) beats by $0.16, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY22 EPS above consensus, revs above consensus… FIVN up 7.8%
Intel (INTC) misses by $0.41, misses on revs; guides Q3 EPS below consensus, revs below consensus; lowers FY22 guidance… INTC down 7.5%
KLA Corporation (KLAC) beats by $0.32, beats on revs; guides Q1 EPS midpoint above consensus, revs midpoint above consensus… KLAC up 2.5%
Roku (ROKU) misses by $0.14, misses on revs; guides Q3 revs below consensus, withdraws its full year revenue growth estimate… ROKU down 25.7%
U.S. Steel (X) reports EPS in-line, beats on revs; announces $500 mln repurchase authorization… X up 3.8%
Yum China (YUMC) beats by $0.19, misses on revs, same store sales declined by 16%; maintains 2022 outlook to open approximately 1,000 to 1,200 net new stores… YUMC up 2.3%
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