8 Mins Ago
Investing legend Peter Lynch regrets not buying into Apple
Legendary investor Peter Lynch said Tuesday that he wished he hadn’t missed out on the explosive growth inApple.
“Apple was not that hard to understand. I mean, how dumb was I?” Lynch, vice chairman of Fidelity Management & Research, said on CNBC’s “Squawk Box.” Apple has a “nice balance sheet. I should have done some work on Apple … it’s not a complicated company.”
Lynch made his name for managing Fidelity’s Magellan Fund from 1977 to 1990. Under his 13-year management, the fund earned an annualized return of 29.2%, consistently more than doubling the S&P 500s performance.
35 Mins Ago
Home sales show surprise gain; consumer confidence dips
New home sales unexpectedly increased in March despite persistently high mortgage rates.
With rates above 7% for a 30-year mortgage, sales still totaled 683,000, an increase of 9.6%, according to seasonally adjusted data Tuesday from the Commerce Department . Economists surveyed by Dow Jones had been looking for sales of 634,000, which would have equated to a decline of nearly 1% from the February total.
The number of homes for sale totaled 432,000, equating to about 7.6 months worth of supply.
Despite the rise in home sales, the Conference Board’s Consumer Confidence Index fell to 101.3 for April, down from 104 in March, which also was the expected level for April.
52 Mins Ago
Cyber ETF on pace for worst day since January
The Global X Cybersecurity ETF (BUG) lost 3.4%, putting the fund on pace for its worse day since January.
It last performed worse on Jan. 5, when the ETF dropped 4.8%.
Tenable led the index down with a drop of more than 21% followings its earnings report. The stock is on pace for its worse day ever all the way back to its initial public offering on July 26, 2018.
Qualys trailed with a nearly 7% slide, followed by CyberArk Software, Zscaler and Telos with drops of more than 5%.
Alex Harring, Gina Francolla
An Hour Ago
Stocks open lower
Stocks opened lower Tuesday.
The Dow was down 0.1% shortly after open. The S&P 500 slid 0.4%, while the Nasdaq Composite shed 0.6%.
An Hour Ago
Majority of companies reporting Tuesday morning beat expectations for EPS, sales, data shows
A majority of companies beat expectations for per-share earnings and sales when looking separately at the two financial markers, according to Bespoke Investment Group.
Of the approximately 60 companies that reported Tuesday morning, 77% beat Wall Street expectations for earnings per share, data from Bespoke shows. Meanwhile, 73% of the reporting companies beat expectations for sales, the firm reported.
To be sure, some market participants anticipated a strong showing relative to consensus estimates given the fact that Wall Street largely pulled back expectations heading into the quarter.
An Hour Ago
Investors will watch to see if Alphabet can break earnings miss streak
Alphabet is slated to report its quarterly earnings after the bell. Investors will be watching to see if the Google parent can end its streak of missed earnings per share expectations.
The company has been on an earnings cold streak, missing Wall Street estimates for earnings per share the last four quarters, according to Bespoke Investment Group.
In three of those last for quarters, the stock has ended the following trading day significantly lower. Here’s how the stock closed the following trading day after the four most-recent earnings reports:
- Fourth quarter of 2022: down 3.3%
- Third quarter of 2022: down 9.6%
- Second quarter of 2022: up 7.7%
- First quarter of 2022: down 3.8%
Alphabet shares were trading down about 0.5% in the premarket.
An Hour Ago
Philadelphia Fed services gauge tumbles deeper into negative territory
Services activity in the Philadelphia region slumped sharply in April as new orders declined further even as prices remained stubbornly high.
The Philadelphia Federal Reserve’s nonmanufacturing index tumbled to -16.2 for the month, after posting a -0.1 in March, the most negative change since December 2020. The index measures the percentage of companies reporting expansion against contraction, so any negative reading represents a pullback.
While new orders slumped 8.5 points to -23.9 and sales went from being positive at 10.3 to -2.9, there was some good news on the hiring front. The full-time employees index jumped to 11.5 from 3.2. However, inflation-related measures remained elevated, with prices paid just edging lower to 35.7, prices received moved up slightly to 20.7 and wages and benefit costs jumped nearly 15 percentage points to 39.7.
The Philadelphia Fed’s manufacturing index also was deeply negative at -31.3, according to a release Monday.
2 Hours Ago
Stocks making the biggest premarket moves
Check out the companies making headlines before the bell on Tuesday:
- 3M The industrial stock added 1.3% before the opening bell. 3M reported $1.97 in earnings per share, higher than analysts expectations of $1.58 from FactSet. The Minnesota-based company announced it would cut about 6,000 positions globally in efforts to focus on high-growth markets such as automotive electrification and home improvement, while prioritizing emerging growth areas such as climate technology and semiconductors.
- JetBlue The stock popped more than 2.3% in the premarket after theairline forecasted a “solidly profitable” second quarterdue to strong travel demand. For the first quarter, JetBlue posted a 34 cents loss, less than the 39 cents expected, per Refinitiv.
- Packaging Corp of America Shares fell 6.8% after the company reported an adjusted profit per share of $2.20, which came in below a StreetAccount forecast of $2.27 per share. The company’s second-quarter guidance also missed expectations.
Read here to see which other companies are making moves before the open.
2 Hours Ago
First Republic Bank needs a strategic pivot to survive, analyst says
First Republic Bank desperately needs to pivot strategically in order for the institution to survive, according to Janney analyst Timothy Coffey.
“We believe FRC needs to drop the growth-at-all-cost business model that defined the company and focus on profitability, which could be an epic undertaking considering it has not reported an [return on assets] greater than 1% since 4Q16,” Coffey said. The firm downgraded shares of First Republic in a Tuesday note.
On Monday, the regional bank said deposits declined 40% in the first quarter, but have since stabilized. The stock has fallen more than 20% in after-hour trading.
CNBC Pro subscribers can read more about the downgrade here.
2 Hours Ago
PepsiCo shares rise after strong earnings, upbeat outlook
PepsiCo climbed nearly 2% in premarket trading after the beverage and snacks giant posted earnings and revenue that topped Wall Street’s expectations.
The company posted $1.50 in adjusted earnings per share, above the $1.39 expected by analysts polled by Refinitiv. Revenue came in at $17.85 billion, higher than the $17.22 billion anticipated.
PepsiCo also raised its outlook on the full year.
Yun Li, Stefan Sykes
2 Hours Ago
JetBlue rises on profit forecast, earnings beat
Shares of JetBlue added about 1.5% in the premarket after the airline reported a smaller earnings loss than expected and forecasted a “solidly profitable” second quarter.
JetBlue estimated earnings per share of 35 cents to 45 cents for the current quarter thanks to strong travel demand. For the first quarter, the airline had a loss per share of 34 cents, versus the 38 cents expected, per Refinitiv. Revenue came in at $2.33 billion compared to the $2.32 billion expected.
JetBlue year-to-date performance
Michelle Fox, Leslie Josephs
3 Hours Ago
General Motors rises on strong earnings, guidance
General Motors shares advanced nearly 3% in premarket trading on the back of earnings that beat estimates and strong guidance for full-year performance.
The auto maker reported $2.21 in adjusted earnings per share and $39.99 billion in revenue. Analysts polled by Refinitiv expected the company to perform worse, with consensus estimates of $1.73 in earnings per share on $38.96 billion in revenue.
On top of those beats, the company also raised its guidance for full-year earnings per share and revenue. GM now expects earnings for the full year to come in between $11 billion and $13 billion, which translates to between $6.35 and $7.35 per share. The company previously guided for between $10.5 billion and $12.5 billion, or $6 and $7 per share.
Alex Harring, Michael Wayland
3 Hours Ago
McDonald’s pops as restaurant chain beats Wall Street expectations
Fast food chain McDonald’s rose nearly 1% in extended trading after the company reported first-quarter earnings that came in ahead of analysts’ expectations.
The company reported $2.63 in adjusted earnings per share, higher than the $2.33 consensus estimate of analysts polled by Refinitiv. Revenue came in at $5.9 billion, which is higher than the $5.59 billion anticipated.
McDonald’s also said U.S. traffic rose for the third quarter in a row, continuing to bring in customers despite rising menu prices.
Alex Harring, Amelia Lucas
4 Hours Ago
UPS falls on disappointing earnings
UPS shares fell more than 5% after the shipping giant reported quarterly results that missed analyst expectations.
The company earned an adjusted $2.20 per share on revenue of $22.93 billion. Analysts expected earnings of $2.21 per share on revenue of $23.01 billion, according to Refinitiv.
“Deceleration in U.S. retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia,” CEO Carol Tome said in a statement. “Given current macro conditions, we expect volume to remain under pressure.”
4 Hours Ago
Results from this little-known packaging company are concerning, Vital Knowledge says
While investors may be fretting over First Republic’s first-quarter numbers, Adam Crisafulli of Vital Knowledge thinks there’s one report that’s more worrisome.
“More concerning from a macro perspective was the PKG (Packaging Corp of America), a firm with itsfinger on the pulse of underlying consumer demand,” he said.
PKG reported an adjusted profit per share of $2.20 that missed a StreetAccount forecast of $2.27 per share. The company’s second-quarter guidance was also below expectations.
Shares of the packaging company fell more than 5% in the premarket.
Fred Imbert, Michael Bloom
7 Hours Ago
Europe stocks open lower
European stock markets were lower shortly after opening on Tuesday, with the benchmark Stoxx 600 index down 0.4%.
France’s CAC 40 fell 0.7%, the U.K.’s FTSE 100 was down 0.4% while Germany’s DAX was narrowly lower.
Banks dropped by 1.66%, as investors digested earnings reports on both sides of the Atlantic, while mining stocks fell 1.4%.
Stoxx 600 index.
16 Hours Ago
Recession may be ‘all but certain’ as small businesses feel pressure, says LPL Financial
LPL Financial says data from small business indicates a “short and shallow recession” in the later half of 2023.
“Small businesses are often considered the backbone of the economy because of the amount of economic activity generated by the sector, and it looks like a backache has emerged,” the firm’s chief economist Jeffrey Roach and chief equity strategist Jeffrey Buchbinder wrote in a Monday note.
Roach and Buchbinder said that new survey data from the National Federation of Independent Businesses shows that hiring intentions among small businesses dropped in March, implying a weak upcoming jobs report.
They added that tighter lending conditions have also put pressure on small businesses.
“The percent of small businesses reporting tighter credit is the highest since 2012, as lending institutions tighten up under the uncertainty of the macro landscape and following mid-March banking turmoil,” said Roach and Buchbinder.
“If small businesses are an accurate barometer, recession risks are rising and the labor market will likely cool in the coming months.”
16 Hours Ago
Stocks making the biggest moves in extended trading
First Republic Bank Shares of the San Francisco-based regional bank tumbled 7.8% postmarket after rising more than 12% during Monday’s main trading session. Although the bank’s earnings per share in the first quarter topped analysts’ estimates,its deposit flight was worse than what analysts had estimated, plunging 41% to $104.5 billion. Analysts had expected the quarter-end deposits to total approximately $145 billion, according to the consensus estimate from FactSet’s StreetAccount.
Whirlpool The home appliance maker rose 3% after its first quarter earnings and revenue beat analysts’ estimates. Whirlpool posted per-share earnings of $2.66 and revenue of $4.65 billion. Analysts had estimated $2.28 in earnings per share and revenue of $4.5 billion, according to Refinitiv data.
The full list can be found here.
16 Hours Ago
Stock futures open flat Monday night
U.S. stock futures were flat Monday evening.
Dow Jones Industrial Average futures dipped by 5 points, or 0.01%. S&P 500 and Nasdaq 100 futures inched down 0.08% and 0.1%, respectively.