Traders Market Weekly: War Drums, Bond Routes, Magnificent Seven Earnings

Viewing 15 posts - 61 through 75 (of 91 total)
  • Author
  • #66723

    Costco (COST 573.00, -1.64, -0.3%): announces that CEO Craig Jelinek to step down effective January 1, 2024; Board of Directors elects President and COO Ron Vachris as new CEO


    Best Buy (BBY 72.06, +1.86, +2.7%): upgraded to Buy from Neutral at Goldman Sachs


    The Philadelphia Fed Index rose to -9.0 in October (consensus -6.5) from -13.5.

    Treasury yields turned lower in response.

    The 10-yr note yield, at 4.98% just before the release, sits at 4.95% now.
    The 2-yr note yield was at 5.25% before the data, but sits at 5.23% now.


    Initial jobless claims for the week ending October 14 decreased by 13,000 to 198,000 (consensus 211,000). That is the first reading below 200,000 since January.
    Continuing jobless claims for the week ending October 7 increased by 29,000 to 1.734 million.

    The key takeaway from the report is the remarkably low level of initial jobless claims — a leading indicator — which conveys a tight labor market that is a good portent for continued strength in consumer spending.

    Treasury yields remain near their post-data lows.

    The 10-yr note yield is at 4.94%, which is still up four basis points from yesterday.
    The 2-yr note yield is down two basis points from yesterday at 5.21%.


    Dow 33588.48 -76.56 (-0.23%)
    Nasdaq 13336.91 +22.61 (0.17%)
    SP 500 4312.89 -1.71 (-0.04%)
    10-yr Note -24/32 4.938
    NYSE Adv Dec Vol
    Nasdaq Adv Dec Vol

    Industry Watch
    Strong: Communication Services, Information Technology, Industrials, Utilities
    Weak: Consumer Discretionary, Energy, Health Care, Real Estate, Consumer Staples

    Moving the Market
    — Treasury yields pulled back in response to this morning’s economic releases

    — Big loss in Tesla (TSLA) following its disappointing quarterly results

    — Digesting a batch of mixed earnings news

    — Lingering geopolitical uncertainty surrounding the Middle East


    Tesla (TSLA 223.76, -18.86, -7.8%) standout loser after missing earnings and revenue estimates, but other mega caps are exhibiting relative strength.

    The Vanguard Mega Cap Growth ETF (MGK) is up 0.2% and the market-cap weighted S&P 500 is up 0.1%.

    The S&P 500 communication services sector (+1.6%) the largest gain among the 11 sectors. The consumer discretionary sector (-0.8%) has fallen to the bottom of the pack.


    Tesla shares were initially up slightly, but moved into the red during the earnings call when CEO Elon Musk tried to rein in expectations on the Cybertruck.

    “I mean, we dug our own grave with Cybertruck,” Musk said. “Cybertruck’s one of those special products that comes along only once in a long while. And special products that come along once in a long while are just incredibly difficult to bring to market, to reach volume, to be prosperous.”

    “I do want to emphasize that there will be enormous challenges in reaching volume production with the Cybertruck, and then in making a Cybertruck cash flow positive,” he said.

    “So, I just want to emphasize that while I think this is potentially our best product ever and I think it is our best product ever, it is going to … require immense work to reach volume production and be cash flow positive at a price that people can afford.”

    Musk said it will take “a year to 18 months before it is a significant positive cash flow contributor.”

    “I think we’ll end up with roughly a 0.25 million Cybertrucks a year, I don’t think we’re going to reach that output rate next year. I think we’ll probably reach it sometime in 2025. That’s my best guess.”


    Dow 33,414.17 -250.91 -0.75%
    S&P 500 4,278.00 -36.60 -0.85%
    Nasdaq 13,186.18 -128.13 -0.96%
    VIX 21.40 2.18 11.34%
    Gold 1,986.30 5.80 0.29%
    Oil 90.34 0.97 1.09%


    Bowlero (BOWL) completes $432.9 mln sale-leaseback transaction with VICI Properties; transferring land and real estate assets of 38 Bowling Entertainment Centers… BOWL up 10.1%


    Bank OZK (OZK) beats by $0.07, net interest income increased 24.7% yr/yr… OZK up 3.7%

    CSX (CSX) misses by $0.01, reports revs in-line; provided Q4 commentary in slides: expects improving sequential trends in select key end markets… CSX down 0.5%

    Intuitive Surgical (ISRG) beats by $0.04, misses on revs… ISRG down 7.1%

    Knight-Swift (KNX) beats by $0.05, beats on revs; guides FY23 EPS above consensus… KNX up 14.6%

    WD-40 (WDFC) reports EPS in-line (two estimates), beats on revs; guides FY24 EPS below two analyst estimate, revs above two analyst estimate… WDFC down 4.8%


    Hewlett Packard Enterprise (HPE) guided FY23 EPS inline and FY24 guidance below consensus earlier today at its Securities Analyst Meeting; also provided its long-term financial model, including revenue growth of 2-4% for FY24-FY26… HPE down 4.9%


    SolarEdge Technologies (SEDG) slashes its Q3 revenue outlook due to substantial unexpected cancellations and pushouts of existing backlog from European distributors… SEDG down 20.2%


    Solar stocks slump:
    $SEDG down 20.2%
    $ENPH -12.4% $RUN -6.9% $SPWR -6.4% $MAXN -6.4% $NOVA -5.5% $FSLR -4.8% $JKS -4.6% $ARRY -4.1% $CSIQ -3.5%


    Fair Value for Friday, October 20:

    S&P 500: 4,304
    Nasdaq 100: 14,889
    DJIA: 33,548


    Equity indices in the Asia-Pacific region ended the week on a lower note.

    Troubled developer Evergrande revised the terms of its proposed restructuring.

    —Equity Markets—

    Japan’s Nikkei: -0.5% (-3.3% for the week)
    Hong Kong’s Hang Seng: -0.7% (-3.6% for the week)
    China’s Shanghai Composite: -0.7% (-3.4% for the week)
    India’s Sensex: -0.4% (-1.3% for the week)
    South Korea’s Kospi: -1.7% (-3.3% for the week)
    Australia’s ASX All Ordinaries: -1.2% (-2.1% for the week)

Viewing 15 posts - 61 through 75 (of 91 total)
  • You must be logged in to reply to this topic.