Monday brought a flurry of deals across several sectors, sending the Dow Jones Industrial Average to an all-time intraday high shortly after the open.
Those transactions are featured on today's hot stocks to watch list, along with earnings from a big bank, a bullish upgrade for a tech favorite, and more.
Get our full list of hot stocks to watch, including C, AAPL, KOG, and more...
Wells Fargo (NYSE: WFC) Starts Big Banks Earnings Season with a Profit Rise and Revenue Drop
Wells Fargo & Co. (NYSE: WFC) kicked off second-quarter bank earnings season Friday morning. While the bank didn't deliver any surprises, its numbers failed to impress.
Shares of the largest U.S. bank by market cap, up 28.5% since October, fell nearly 2% to $50.82 on brisk volume following the uninspiring report.While analysts have trimmed estimates on a number of banks in the last several weeks, expectations for WFC held steady. Here’s the full story on Wells Fargo Q2 earnings, and what it means for WFC stock…
AAPL, GRPN, and ABBV Are Today's Pre-Market Movers
Dow Jones today, July 8, 2014: This morning, Apple Inc. (Nasdaq: AAPL), Groupon Inc. (Nasdaq: GRPN), and Alcoa Inc. (NYSE: AA) are among the day's more notable premarket movers.
Yesterday, the Dow Jones Industrial Average dropped more than 50 points as investors weren't willing to take risky positions ahead of earnings season. Cyclical and small-cap stocks lagged the hardest this afternoon. The CBOE Volatility index soared more than 11%, the largest hike in nearly three months. The bounce was significant, as the index hit its lowest level since February 2007 last Thursday.Here's what you should know to make your Tuesday profitable:
Apple (Nasdaq: AAPL) Earnings Beat Takes Everyone By Surprise
Apple Inc. (Nasdaq: AAPL) pleasantly surprised Wall Street by comfortably beating expectations when it reported earnings for its March quarter after the market close today (Wednesday).
The tech giant also threw existing holders of Apple stock several goodies, including an expansion of the stock buyback program and an 8% increase in the dividend.
But while the stellar earnings report will push Apple stock higher in the short term,it will take more than that to sustain a push back to $600 and beyond...
Get Ready for Earnings Season – Wall Street's Quarterly Shell Game
It's earnings season. And for company players, the game is about trying to beat analysts' estimates, to get your company's stock to pop so you look better than your reflection.
But the game is rigged. And like high-frequency trading and so many other "institutionalized" games on the Street that are sucking the life out of other people's dreams, it's not illegal.Here's how earnings are manipulated, and why it should be stopped...
JPMorgan (NYSE: JPM) Stock Slumps After Rare Earnings Miss
For the first time in over two years, and only the fifth time in a decade, JPMorgan Chase & Co. (NYSE: JPM) missed earnings forecasts when it posted first-quarter 2014 results Friday.
Investors were prepared for a slip in earnings compared with Q1 of 2013. In February, JPM cautioned trading revenue was weak. The warning was especially troubling because the first quarter is traditionally a strong one.But Q1 of 2014 wasn't just weak - it was JPM's worst quarter since 2008, during the depths of financial crisis...
Earnings Reports Calendar: 5 to Watch This Week
The earnings reports calendar is getting crowded as some big names deliver numbers this week - and investors will get to see if a harsh winter hurt Q1 results this season.
S&P 500 companies' Q1 earnings are forecast to have fallen 1.4% year over year, according to data from FactSet. That's down sharply from the start of the year, when profit growth was projected to rise 4.5%.To continue reading, please click here...
- What Q3 Earnings Season Shows Us About Today's Stock Market As we move through earnings season, a disturbing trend has developed. Companies are still beating their EPS estimates, but by drastically lower margins than usual. With stock prices near record highs, something here doesn't add up. Here's what's going on - and what you should do about it...
Stock Market Today: Will a Bad Earnings Season Spoil This Year's Gains?
Coming off the worst week of the year, market participants have a cautious stance in the stock market today as earnings season kicks off - and will likely disappoint.
The Dow fell 13.29 points, or 0.09%, to 14,565.25 last week. The S&P shed 15.91, or 1.01%, to end the week at 1,553.28.
Monday, guarded investors kept a wary eye on developments in Eurozone, nuclear tensions in the Korean Peninsula, and Alcoa Inc.'s (NYSE: AA) earnings after the bell-the unofficial kick-off to Q1 earnings reports.
Red flags are waving that companies will report a slowdown in corporate profits. A number of companies have delivered lower guidance, with pre-earnings announcements sloped to the negative side. Companies in the S&P are expected to increase Q1 earnings a measly 1.5% over last year, according to Thomson Reuters.
Weak earnings could push any nervous investors to take gains and bail on markets for a while.
"Right now, projections for earnings in 2013 and the market are based on optimistic assumption," Howard Silverblatt, senior index analyst with S&P Dow Jones Indices told Barron's. "We can meet estimates if things move in the right direction. But the economy does not go straight up or down. There are bumps up or down. There are bumps in the road. And investors rarely get everything they need or want."
Here are some upcoming earnings reports to watch, as well as two of the biggest deals moving stocks this week.Read More...
These U.S. Stocks on the Move After Better-than-Expected Earnings
U.S. stocks are trying to hold onto gains today (Wednesday) after another round of earnings reports and testimony by U.S. Federal Reserve Chairman Ben Bernanke.
Bernanke spoke before the House Financial Services Committee Wednesday and did not diverge from his non-committal message a day earlier on whether or not the Fed would provide more stimulus.
Economic reports today include housing starts for June, which rose 6.9% to a seasonally adjusted annual rate of 760,000 units, the highest level since October 2008. Thanks to record low interest rates, applications for mortgages rose last week as many homeowners try to refinance.
But, it was not all good news from the Commerce Department as new permits for building homes dropped 3.7% in June to a 755,000 unit pace.
To continue reading, please click here... Read More...
Alcoa Earnings Report Uneasy Start to Second Quarter (NYSE: AA)
Investors already have a cautious stance in the market amid growing fears about the world's biggest economies, and Monday's Alcoa (NYSE: AA) earnings report didn't help.
The aluminum producer, which always kicks off the earnings season, delivered more of a punt than a kickoff. The Dow bellwether reported an 81.3% drop in profits, as the global slowdown and production cuts weighed on profits.
Reporting after Monday's market close, Alcoa said income from continuing operations came in at $61 million, or 6 cents a share, on revenue just a hair under $6 billion. While significantly lower than the same period a year ago, the lackluster results still managed to beat Wall Street's tepid expectations (analysts were looking for 5 cents on revenue of $5.8 billion).
Chairman and CEO Klaus Kleinfeld said in a statement following the earnings release, "Alcoa maintained revenue strength amid solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses."
Contributing to the profit decline was a global glut resulting from stagnant and slowing growth in many areas around the world, especially China.
Earnings Season Begins in the Stock Market Today
Friday's negative jobs report is hanging over the stock market today as the markets opened lower Monday morning. Investors will look to corporate earnings of major companies this week as the second-quarter earnings season unofficially begins.
Even though some major companies such as Research in Motion Ltd. (Nasdaq: RIMM) and Nike Inc. (NYSE: NKE) have recently announced earnings, Alcoa (NYSE: AA) unofficially kicks off the market's second-quarter earnings.
Investors hope that earnings do not follow the disappointing trend set by RIMM and NKE, but many other companies have already issued lower guidance for the upcoming quarter. This does not bode well for the economy which is trying to shrug off manufacturing, jobs and consumer confidence reports that all point towards "Recession 2013."
Many analysts expect earnings to be weak across the board. Corporate profits are starting to feel the sting of economic concerns overseas and at home.
Later this week JPMorgan Chase (NYSE: JPM) and Well Fargo (NYSE: WFC) report their earnings as well as Google (Nasdaq: GOOG).
Troubles in Spain continue to impact the confidence of investors as the yield on the Spanish 10-year bond crossed the 7% mark again.
Along with Alcoa here are some other companies in the news today.
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Energy and Materials Will Ride High This Earnings Season… but 2012 is Another Story
The hottest sectors for the third-quarter earnings season, Energy and Materials, should stay on their winning streak through the next quarter, but will get hit by lagging demand from emerging markets in 2012.
The two sectors will report the best results in an earnings season expected to see overall profits by companies in the Standard and Poor's 500 Index rise by 12.6%, with Energy up 43% and Materials up 32%.
Demand for both should remain strong enough in the fourth quarter to give Energy a 25% pop and Materials a 22% jump. But after that, slowing activity in emerging economies, particularly China, will take its toll.
"If you look at the last few quarters, any time companies are talking about where they're seeing the largest growth in sales and earnings, it's typically been China, India, emerging markets," John Butters, senior earnings analyst at FactSet Research Systems Inc. (NYSE: FDS), told Yahoo! Finance. He said that a slowdown in demand would have an "impact on future expectations."
Just last week the price of such commodities as oil, copper and other metals fell when China reported that its trade surplus fell to $14.5 billion in September, down from $17.7 billion in August.
"The concern is that the European debt crisis is hampering the economy in China, and possibly in broader Asia," Bart Melek, head of commodity strategy with TD Securities, told The Wall Street Journal. Investors, he said, "think demand may drop."
Meanwhile, the International Energy Agency (IEA) cut its oil demand forecasts for 2012, though the organization still sees oil demand hitting a record this year.
3Q Earnings SeasonApart from Energy and Materials, the Consumer Discretionary Sector will also do well with 16% growth in the third quarter. The laggards this quarter will be the Utilities sector, which will see earnings fall 1%, Healthcare, which will eke out 2% growth and Consumer Staples, which will see 5% growth.
Yet the overall message is a positive one.
"Overall we are seeing fairly broad-based growth across the sectors," Butters told Yahoo! Finance. "Nine of the ten sectors are expecting growth on the earnings side and all 10 sectors are expecting growth on the revenue side."
To continue reading, please click here...
Dropping Expectations Point to Rocky Earnings Season
With more companies issuing warnings about their results in recent weeks, investors may see more than a few disappointments in the second-quarter earnings season.
Companies faced many sources of pressure on their bottom lines over the last quarter, including persistent unemployment, the disruption of the global supply chain from the Japanese earthquake and tsunami, and high commodity and energy costs.
"This is where we can get down to the fundamentals of this market and finally see how companies are actually doing in this economy," Jack Ablin, chief investment officer at Harris Private Bank, told CNN Money.
Once-lofty expectations for the second quarter have been slipping for weeks. The Standard & Poor's 500 share-weighted earnings estimate has dropped four weeks in a row, from $232.5 billion on June 9 to $222.9 billion last week.
Of greater concern is that 84 companies - 17% of the S&P 500 - have given negative preannouncements, while just 33 have given positive preannouncements, according to Thomson Reuters data.
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The Supply Chain Strain Is Changing the Way Manufacturers Do Business
As growing demand boosts production in the second half of 2010, some companies will fail to meet output due to struggles in the supply chain.
Earnings season has shown industrial companies' surging profits in the first half of the year and increased optimism for the months to come. Emerging market strength and stable raw material prices have helped the manufacturing boost.
Industry giants like Caterpillar Inc. (NYSE: CAT) and Siemens AG (NYSE ADR: SI) all raised their outlooks and posted higher-than-expected earnings.
Siemens' second-quarter orders increased by 22% from a year ago and income rose 40% to a record high of $3 billion (2.3 billion euros). The demand increase Siemens is predicting for the rest of 2010 allowed the company to end the reduced working-hour arrangements it had set up with about 19,000 employees.