Streetbeat News

Earnings

ADBE

JPM

NVDA

UNH

WFC

The S&P 500 closed slightly lower on Friday, but all three major indices recorded strong weekly gains. UnitedHealth Group Incorporated (UNH) shares gained more than 7% after reporting better-than-expected Q2 earnings. JPMorgan Chase & Co. (JPM) shares rose 0.6% following upbeat quarterly earnings, while Wells Fargo & Company (WFC) shares slipped 0.3% despite higher quarterly profit. The Nasdaq 100 slipped 0.04% amid gains in shares of NVIDIA Corp (NVDA) and Adobe Inc (ADBE). The CBOE Volatility Index (VIX) fell 2%.

Portfolio Pulse from Lisa Levin

July 17, 2023 | 9:03 am

AMD

MRVL

NVDA

SOXQ

TXN

KeyBanc Capital Markets analyst John Vinh is optimistic about the semiconductor sector despite soft chip demand, highlighting AI as a key strength. Vinh named Nvidia Corp., Marvel Technology, Inc., and ON Semiconductor Corp. as best positioned ahead of Q2 earnings. However, he expressed caution about Advanced Micro Devices, Inc. and Texas Instruments, Inc. due to various challenges. The Invesco PHLX Semiconductor ETF ended Friday's session down 1.10%.

Portfolio Pulse from Shanthi Rexaline

July 17, 2023 | 8:52 am

BCAN

FBK

GNTY

HBCP

UUU

Five stocks to watch on Monday include Guaranty Bancshares, BYND Cannasoft Enterprises, FB Financial Corporation, Universal Security Instruments, and Home Bancorp. Guaranty Bancshares is expected to post quarterly earnings of 56 cents per share. BYND Cannasoft Enterprises reported a proposed underwritten public offering. FB Financial Corporation is expected to have earned 65 cents per share for the latest quarter. Universal Security Instruments reported earnings of 12 cents per share for the fourth quarter. Home Bancorp is expected to report quarterly earnings of $1.16 per share.

Portfolio Pulse from Lisa Levin

July 17, 2023 | 8:07 am

BABA

BYDDY

MCHI

NIO

TCEHY

China's Q2 GDP growth of 6.3% year-over-year was lower than the expected 7.3%, causing unease among investors. The slower growth rate could impact Chinese stocks listed in the U.S., including Alibaba, Tencent, JD.com, BYD, and Nio. The iShares MSCI China ETF, which tracks U.S.-listed Chinese equities, ended down 1.71%.

Portfolio Pulse from Shanthi Rexaline

July 17, 2023 | 7:02 am

TSLA

Tesla, Inc. (NASDAQ:TSLA) is expected to host its Q2 earnings call soon. Analysts predict that the company may not discuss the launch timing of the Model 3 refresh due to the potential 'Osborne effect', which could lead to customers deferring orders for the current version of the product. The upgraded Model 3, codenamed 'Highland', is rumored to be close to starting trial production at Tesla's Giga Shanghai. Analyst Gary Black expects Tesla to report Q2 adjusted earnings of $0.82 per share and an auto gross margin of 18.2%, excluding regulatory credits.

Portfolio Pulse from Shanthi Rexaline

July 17, 2023 | 6:31 am

FBK

GNTY

HBCP

JPM

WFC

The Dow Jones recorded gains for the fifth straight session on Friday following strong earnings from major banks, including JPMorgan Chase & Co. and Wells Fargo & Company. The Dow gained 2.3% on a weekly basis, its best performance since March. The CNN Money Fear and Greed index remained in the 'Extreme Greed' zone. Investors are awaiting earnings results from FB Financial Corporation, Home Bancorp, Inc., and Guaranty Bancshares, Inc.

Portfolio Pulse from Lisa Levin

July 17, 2023 | 5:52 am

BLK

BTCUSD

BlackRock CEO Larry Fink has expressed optimism about the growing demand for cryptocurrencies like Bitcoin among gold investors. He noted the potential for ETFs to democratize access to both gold and crypto. This comes as BlackRock filed for a spot bitcoin ETF with the SEC. BlackRock released its Q2 results with adjusted earnings per share of $9.28 and generating $4.46 billion in revenue. The company’s assets under management have surged to over $9 trillion.

Portfolio Pulse from Mehab Qureshi

July 17, 2023 | 4:25 am

AAL

AXP

BAC

DFS

DHI

IBM

JNJ

JPM

NFLX

NOK

PNC

SLB

SPY

TRV

TSLA

TSM

UAL

USB

The Q2 reporting season has begun with earnings reports from big banks and blue-chip stocks. The blended earnings of S&P 500 companies are expected to drop 7.1% YoY in Q2, marking the third consecutive quarter of negative earnings growth. Financial and tech earnings will headline the coming week's news. Companies reporting include Bank of America, Bank Of New York Mellon, Morgan Stanley, PNC Financial Services Group, Goldman Sachs, U.S. Bancorp, American Express, IBM, Netflix, Tesla, Nokia, Taiwan Semiconductor Manufacturing Company, United Airlines, Alcoa, Discover Financial Services, Travelers Companies, Johnson & Johnson, American Airlines, D.R. Horton, and Schlumberger. The SPDR S&P 500 ETF Trust ended Friday’s session at $449.19, down 0.02%.

Portfolio Pulse from Shanthi Rexaline

July 16, 2023 | 9:42 pm

TSLA

Ahead of Tesla's Q2 results, New Street Research analyst Pierre Ferragu warns of short-term margin disappointment due to the discounts offered by the company during the quarter. However, he also predicts a good recovery beyond Q2. Tesla's aggressive pricing has kept the company on track to grow annual deliveries by 50%, but this has driven margins down from 30% to 18.34% in Q1. Ferragu expects gross margins to slide a further 270 basis points to 15.6% in Q2. Despite this, he sees margins bottoming in Q2 and recovering afterwards, with auto gross margins expected to be at 25% in the long run.

Portfolio Pulse from Shanthi Rexaline

July 16, 2023 | 1:52 pm

GOEV

LCID

NKLA

RIVN

TSLA

The week ending July 14 saw mixed performances in electric vehicle (EV) stocks. Tesla (TSLA) advanced amid expectations for its Q2 earnings. The company shared a photo of the first Cybertruck off the Giga Texas production line, suggesting deliveries may begin in late Q3. Tesla is also reportedly discussing the second phase of its Giga Berlin project and potential EV factory in India. Lucid Group (LCID) fell short on quarterly deliveries, raising doubts about its ability to scale. Rivian Automotive (RIVN) saw its stock rally stall after a record winning streak. Nikola Corp. (NKLA) saw a surge after announcing a deal to sell 50 hydrogen fuel cell energy trucks to BayoTech. Canoo (GOEV) delivered three Artemis crew transportation vehicles to NASA.

Portfolio Pulse from Shanthi Rexaline

July 15, 2023 | 1:35 pm