Original source (on modern site) | Article images: [1]
Tue, Apr 23 20243:33 PM EDT Goldman Sachs' David Kostin expects earnings will be higher this year even amid concerns of margin pressures in the face of higher inflation. About one-fifth of companies have reported thus far this earnings season. Of those companies, Kostin noted, roughly two-thirds have topped expectations on the bottom line, while about one-third beat estimates on the top line. "What that suggests to us is that companies are able and demonstrating the ability to kind of squeak over a little bit margin," Kostin told CNBC's "Squawk on the Street" on Tuesday. The chief U.S. equity strategist said he anticipates inflation will eventually move lower this year, and interest rates will come down from their highs, helping to drive earnings growth. "Our forecast is that [the] market rises slowly in line with expectations for earnings," Kostin said. "Margins will be roughly flat, and then ultimately it's a little bit about economic growth will drive sales, and that's largely the reason for earnings to be higher for this year." — Sarah Min Tue, Apr 23 20242:52 PM EDT IBM is close to a deal to buy cloud software provider HashiCorp, according to The Wall Street Journal, citing people familiar with the matter. Shares of HashiCorp jumped 7%, while IBM's stock traded slightly lower. The Journal said a deal could be done in the coming days, but it is also possible that the discussions may not yield anything. — Yun Li Tue, Apr 23 20242:40 PM EDT Tesla Supercharger stations near a Circle K gas station in Austin, Texas, on April 23, 2024. Brandon Bell | Getty Images Tesla is due to report earnings after the bell Tuesday, with Wall Street looking for any sign of a reprieve from this year's struggles. Shares are down more than 40% in 2024 and reached their lowest level since January 2023 on Monday amid concerns over demand, price cuts, a Cybertruck recall and heightening demand from Chinese competitors. Against this backdrop, analysts are looking to see if Tesla can convince Wall Street of its growth potential ahead. Several Wall Street firms lowered their price targets in advance of Tuesday's announcement, with many forecasting that the company will lower its deliveries outlook for the rest of the year. CNBC Pro subscribers can read the full story here. — Hakyung Kim Tue, Apr 23 20242:29 PM EDT Globe Life shares surged more than 11% in afternoon trading after the life insurance company raised its full-year earnings guidance. The life insurer anticipates earnings per share between $11.50 and $12.00 for 2024, up from a prior range between $11.30 and $11.80. Otherwise, the firm posted first-quarter operating earnings and revenue that matched FactSet consensus estimates. Separately, the company in its earnings call addressed a recent short seller report alleging multiple instances of insurance fraud, saying that it has retained WilmerHale to conduct an independent review. The stock had tumbled more than 36% this month following Fuzzy Panda Research disclosing a short position after uncovering "extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times." Globe Life — Sarah Min Tue, Apr 23 20242:10 PM EDT GE Aerospace shares jumped nearly 7% on Tuesday after it beat first-quarter earnings expectations and raised its operating profit outlook. The report was the first since the aviation business spun off from General Electric in April. The company reported adjusted earnings of 82 cents a share, while analysts polled by FactSet expected 65 cents a share. On a stand-alone basis, GE Aerospace posted adjusted revenue of $8.1 billion for the period, surpassing analysts' forecast of $7 billion, per FactSet. This year, GE Aerospace expects adjusted earnings to come out between $3.80 and $4.05 a share, and an operating profit between $6.2 billion and $6.6 billion, which is higher than its previous forecast. The stock is up more than 58% year to date. — Pia Singh Tue, Apr 23 20241:50 PM EDT Tesla advanced 2% ahead of its earnings announcement Wednesday after the bell. The electric vehicle stock has declined 17.6% in April alone, putting it down 41.7% year to date. Tesla shares Wednesday — Hakyung Kim Tue, Apr 23 20241:48 PM EDT Investors are continuing to rotate into defensive strategies, as can be observed through the performance of consumer discretionary stocks versus staples, according to Wolfe Research. "Consumer Staples has been hit hard for the majority [of] this year, but we have seen the sector begin to come to life over the past week, now up 4.3% on the year (Discretionary is down 4%)," wrote analyst Rob Ginsberg. He added, "We think this speaks to a few changing themes, including investor sentiment and a shift into Value names. Perhaps the idea of rates staying higher is really starting to sink in." As staples continue to outperform, Ginsberg highlighted Tyson Foods and Mondelez International as two stocks in the sector he is bullish on. — Lisa Kailai Han Tue, Apr 23 20241:01 PM EDT JPMorgan Chase CEO and Chairman Jamie Dimon gestures as he speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee oversight hearing on Wall Street firms, on Capitol Hill in Washington, D.C., on Dec. 6, 2023. Evelyn Hockstein | Reuters JPMorgan Chase CEO Jamie Dimon said Tuesday that the American economy remains strong, but could tip into a period of "stagflation." At the Economic Club of New York, Dimon said to watch out for "stagflation," which is an economic situation defined by high inflation and unemployment as well as slowed growth. Despite that concern, he said the American economy has continued to boom. The bank chief also said the current geopolitical situation is likely the "most complicated and dangerous" since World War II. — Alex Harring, Ritika Shah Tue, Apr 23 202412:26 PM EDT Jonathan Raa | Nurphoto | Getty Images Here are the stocks moving the most in midday trading: Read the full list of stocks moving here. — Lisa Kailai Han Tue, Apr 23 202412:20 PM EDT Tue, Apr 23 202411:51 AM EDT The Penn Entertainment logo is displayed on a smartphone screen. Rafael Henrique | SOPA Images | Lightrocket | Getty Images Penn Entertainment shares rose 1.7% on Tuesday after Truist Securities upgraded shares to buy and assigned a price target that implies roughly 35.8% upside for the stock. That is a bullish call, as Penn Entertainment's shares have fallen nearly 35% this year, since the company announced a licensing deal with ESPN in August to create sportsbook ESPN BET. Shares are up more than 4% week to date. "We're upgrading PENN … largely on risk/reward, given we effectively see zero to negative value ascribed for ESPN Bet at current trading levels," analyst Barry Jonas wrote in a Tuesday note. "At this point, we think expectations are too low, and the market is not only too bearish on ESPN Bet but also assuming no value for PENN's other profitable Interactive businesses." For more on the upgrade, read here. — Pia Singh Tue, Apr 23 202411:39 AM EDT General Motors stock climbed 4.2% Tuesday after the legacy automaker surpassed Wall Street estimates in the first quarter and raised its full-year earnings forecast. General Motors stock. GM said it now expects adjusted earnings in the range of $12.5 billion to $14.5 billion this year, compared to a previous forecast of $12 billion to $14 billion. — Brian Evans Tue, Apr 23 202410:27 AM EDT A home with a "Sold" sign from a real estate company in North Patchogue, New York. Steve Pfost | Newsday | Getty Images New residential home sales accelerated in March at a faster-than-expected pace as mortgage rates declined over the month, the Commerce Department reported Tuesday. Sales of single-family homes totaled 693,000 for the month, considerably higher than the downwardly revised 637,000 in February and better than the 669,000 estimate from Dow Jones. With the lower February total, the 8.8% gain in March was much higher than the 1.1% forecast. After dipping in January, the median sales price jumped back up to $430,700, the highest level since August 2023. Interest rates for 30-year mortgages edged lower in March to below 7% but have since rebounded, according to Bankrate. — Jeff Cox Tue, Apr 23 20249:58 AM EDT Manufacturing and services activity hit multimonth lows in April, indicating a potential slowdown in U.S. economic growth. The S&P Global Flash U.S. Composite PMI showed a 49.9 reading for manufacturing, down from 51.9 in February and the lowest reading in four months. On the services side, the index came in at 50.9, compared to 51 the prior month. Economists surveyed by Dow Jones had been looking for 52 readings on both measures. The diffusion indexes measure the percentage of companies reporting expansion, so anything below 50 points to contraction. New orders measures dropped for the first time in six months. "Companies responded by scaling back employment for the first time in almost four years, with business confidence also waning to the lowest since last November," the report stated. — Jeff Cox Tue, Apr 23 20249:48 AM EDT Shares of Spotify jumped 13% Tuesday after the streaming music company beat expectations on the top and bottom lines for the first quarter. Spotify shares rose sharply after the company released first-quarter results. Spotify reported 0.97 euros in earnings per share on 3.64 billion euros in revenue. Analysts surveyed by LSEG had penciled in 0.65 euros per share and $3.61 billion euros in revenue. Spotify's gross margin of 27.6% was up from 25.2% in the same quarter a year ago. — Jesse Pound Tue, Apr 23 20249:36 AM EDT An aerial view shows a pumpjack operating at an oil well in Gray Horse, Oklahoma, on Sept. 29, 2023. Chandan Khanna | AFP | Getty Images U.S. crude oil hit a session low of $80.89 a barrel on Tuesday, the lowest level since late March. The West Texas Intermediate futures contract for June also dipped below the 50-day moving average of $81.22 a barrel for the first time since early February. WTI was last trading at $81.51 a barrel, down 39 cents, while the June Brent futures contract was last down 36 cents at $86.64 a barrel. Traders have bid down prices after a runup early this month on fears that Iran and Israel were on the brink of war. Those fears have largely dissipated as the bitter enemies have signaled they are not interested in a wider war after trading tit-for-tat strikes this month. The market was also unconcerned about looming oil sanctions on Iran. The House of Representatives passed legislation over the weekend that would target ports, vessels and refineries that accept Iranian oil. The Senate could take up the legislation this week. — Spencer Kimball Tue, Apr 23 20249:32 AM EDT Traders work on the floor of the New York Stock Exchange. NYSE Stocks opened higher on Tuesday, with Wall Street focused on a fresh slate of forthcoming tech earnings. The S&P 500 added 0.4% shortly after the opening bell, while the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average climbed 124 points, or 0.3%. — Brian Evans Tue, Apr 23 20248:34 AM EDT Here are some of the names making moves before the bell: To see more stocks moving in the premarket, read the full story here. — Michelle Fox Tue, Apr 23 20247:19 AM EDT United Parcel Service trucks are parked at a UPS customer center in Los Angeles on April 1, 2024. Mario Tama | Getty Images United Parcel Service ticked 0.4% higher during premarket trading Tuesday after earnings per share topped Wall Street expectations. UPS earned $1.43 per share in the first quarter excluding items, easily exceeding the consensus forecast of $1.29 from analysts polled by LSEG. On the other hand, revenue came in at $21.7 billion, under the $21.86 billion anticipated by analysts. The Atlanta-based company also reiterated its full-year guidance on revenue, operating margins and capital expenditures. — Alex Harring Tue, Apr 23 20243:41 AM EDT European stocks opened higher Tuesday, with the benchmark Stoxx 600 index up 0.5% by 8:40 a.m. London time. The U.K.'s FTSE 100 climbed 0.5% to hit an all-time intraday high, while France's CAC 40 was 0.2% higher, and Germany's DAX was up 0.7%. Stoxx 600. — Karen Gilchrist Mon, Apr 22 202410:40 PM EDT The sign of Chabaidao is seen at its shop in Shanghai on Aug. 10, 2023. Aly Song | Reuters Shares of Chinese bubble tea chain Chabaidao, officially listed as Sichuan Baicha Baidao Industrial, opened 10% lower in early trade on its trading debut in Hong Kong, before plunging more than 30%. It is currently trading at HK$12.32, far below its IPO offer price of HK$17.50. The IPO is Hong Kong's largest listing so far this year. The company announced it had garnered net proceeds of 2.59 billion Hong Kong dollars, or $330.5 million, from its IPO, before listing expenses. Chabaidao offered 90% of its 147.7 million shares in a global offering, while the remainder 10% was offered in a public offer in Hong Kong. However, the public offer was only 0.5 times subscribed, leading the firm to reallocate the remainder of the shares to the global offer, which was 1.11 times subscribed. — Lim Hui Jie Mon, Apr 22 20248:38 PM EDT The Japanese yen weakened to a fresh 34-year low against the U.S. dollar early Tuesday, hitting 154.85 against the greenback. This is the weakest the currency has been since the mid-1990s, although it has strengthened marginally to 154.74 as of 9:18 a.m. Tokyo time. The currency will be watched by the Bank of Japan as it meets Friday, although the central bank has not announced a level where it will intervene. — Lim Hui Jie Mon, Apr 22 20248:04 PM EDT Australia's business activity in April expanded at its fastest clip in 24 months, according to flash figures from S&P Global. The country's composite purchasing managers index came in at 53.6, compared to 53.3 in March. Manufacturing PMI climbed to 49.9 from 47.3, just shy of the 50 mark that separates expansion from contraction, while services PMI slipped slightly to 54.2 from 54.4. — Lim Hui Jie Mon, Apr 22 20246:20 PM EDT The Cleveland-Cliffs steel plant in Riverdale on Feb. 17, 2023. E. Jason Wambsgans | Chicago Tribune | Tribune News Service | Getty Images Check out the companies making headlines in after-hours trading. Read the full list here. — Sarah Min Mon, Apr 22 20246:17 PM EDT New home sales are anticipated to have risen 1.2% in March, according to economists polled by Dow Jones. That would be a jump from a 0.3% decline in the prior month. The data is set to release at 10 a.m. ET on Tuesday. — Sarah Min Mon, Apr 22 20246:02 PM EDT Traders work on the floor of the New York Stock Exchange. NYSEGoldman Sachs' Kostin expects earnings will be higher this year even amid margin pressures
IBM reportedly nearing deal to buy HashiCorp
Wall Street awaits Tesla results
Globe Life shares surge after earnings guidance
GE Aerospace shares soar after earnings beat, guidance lift
Tesla shares rise before earnings
Investors are continuing to shift into defensive strategies, says Wolfe Research
Dimon says economy is booming, but 'stagflation' risk remains
Stocks making the biggest moves midday: Spotify, JetBlue and more
Cathie Wood's innovation fund suffers $1.4 billion in outflows this year
Penn Entertainment shares jump on Truist Securities upgrade
General Motors pops after earnings beat, strong guidance
Home sales rose more than expected in March
PMI indexes for April come in lower than expected
Spotify jumps 13% after earnings beat
U.S. crude oil falls to lowest level since March, dips below 50-day moving average
Stocks open higher
Stocks making the biggest premarket moves
UPS rises on per-share earnings beat
Europe stocks open higher as FTSE hits record high
Chinese bubble tea company Chabaidao tumbles 30% in Hong Kong trading debut
Yen hits fresh 34-year low of 154.85 early Tuesday
Australia's business activity expands at fastest pace in 24 months: S&P Global
Stocks making the biggest moves after hours
March new home sales data set to release Tuesday
Stock futures open little changed
![[1]](image.php?loc=AT&i=https://image.cnbcfm.com/api/v1/image/107369706-1707240585351-gettyimages-1988475057-ms2_5755_xzzgmlaz.jpeg?v=1713820846&w=1920&h=1080){kind=link}