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US stocks trending mostly higher hours before Tuesday"s opening bell

U.S. equity futures are pointing to a higher opening Tuesday after Monday's rebound in shares of technology and communications companies and as investors grew more comfortable with the inflation outlook and the pace of the economic recovery......»»

Category: topSource: foxnewsMay 25th, 2021

Dow Reaches New Record as Stocks Jump 1%

Dow Reaches New Record as Stocks Jump 1% Now that’s more like it! Stocks fought back from an opening selloff once again on Wednesday, but this time the major indices each rose by 1% or more. We even got a new all-time high as investors look toward recovery names. The Dow is back to making history after rising 1.35% (or about 424 points) to an all-time high of 31,961.86. Money continues to move toward recovery names with energy, financials and miners doing particularly well today. The last record close for the Dow was exactly one week ago on Wednesday, February 17. The S&P snapped a five-day losing streak yesterday by the slimmest of margins; it gained less than five points. But the index was back with a vengeance on Wednesday by climbing 1.14% to 3925.43. It’s now in the green for the week so far The NASDAQ managed its first positive close since last Friday by gaining 0.99% (or around 132 points) to 13,597.97. The advance recovers about a third of the losses accrued in the previous two sessions, which included a plunge of nearly 2.5% on Monday. This index is on the other side of the rotation as money is moving out of the tech space and into stocks that will benefit most from the reopening. The last time all three indices gained 1% or more in the same session was Thursday, February 4. Since that time though, investors have been growing more anxious about rising rates and inflation. However, Fed Chair Jerome Powell may have soothed some of those concerns in front of the House Financial Services Committee today and the Senate Banking Committee yesterday.   For the second day in a row, Mr. Powell stressed that inflation and employment are far below the Committee’s goals and will likely come up short for a while longer. Therefore, the super accommodation is here to stay for now with more stimulus likely on the way.   In other news on Wednesday, Johnson & Johnson’s (JNJ) single-dose covid vaccine was deemed safe and effective by the FDA, which means it will be another weapon in the fight to end this pandemic. Meanwhile, NVIDIA (NVDA), one of the most innovative chipmakers in the market, reported strong quarterly results after the bell. But as you might expect, shares are down over 3% after hours as of this writing. Today's Portfolio Highlights: Counterstrike: The market’s recent sluggishness took a toll on shares of Zillow (ZG), but the stock had previously been soaring on a strong quarterly report. This popular online real estate company beat the Zacks Consensus Estimate by 41%! Jeremy considers ZG to be “one of the best stories and strongest names out there”, so he jumped at the chance to add a starter position of 4% on Wednesday before the stock moves higher again. The editor would add more on any further weakness. Meanwhile, Overstock.com (OSTK) missed on the top and bottom lines in its report, which sent shares sharply lower. It’s time to get out, so Jeremy sold the e-commerce service provider today for a 13.8% return in a little over two months. Learn about all of today’s moves in the full write-up.   TAZR Trader: The correction in growth valuations will likely continue as interest rates rise and the economy re-opens, so Kevin thought this was a good time to take some profits from Baidu (BIDU). This AI-focused player on Chinese big data has been a major performer for the portfolio since being added last year, and today’s trim secures a profit of approximately 112%. Read the full write-up for more on this move, along with updates on Square (SQ) and BigCommerce (BIGC). Home Run Investor: With the chip shortage situation getting a lot more press these days, Brian thought it was a good time to cash in Ultra Clean Holdings (UCTT). The company was a true home run as it brought a return of about 142% to the portfolio in five-and-a-half months. The new addition is Hillenbrand (HI), a global diversified company with businesses in industrial equipment and funeral services. This Zacks Rank #2 (Buy) has beaten earnings expectations in each of the last four quarters with an average surprise of 46% over that time. The editor also thinks that HI has a “wonderful” valuation. Make sure to the read the full write-up for more on all of today’s moves. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Concerns Of Higher Taxes Lead to Lower Stocks

Concerns Of Higher Taxes Lead to Lower Stocks Few things can drain the market’s energy quicker than threats of higher taxes, which is exactly what we got in Thursday’s session. The major indices may have been able to finish in the green today after another encouraging jobless claims print, but any upward movement was ruined by reports that President Biden is considering a hike in capital gains taxes. Actually, the reports say that he proposes nearly doubling the rate to 39.6% from 20% for people making $1 million or more. Now, this is probably just the opening move in Congressional negotiations, where the Democrats hold a slim majority over the Republicans. Nevertheless, investors don’t like hearing that taxes may double, especially when they’re already skittish about a frothy market. As a result, the major indices all dropped by nearly 1% on Thursday. The Dow dipped 0.94% (or about 321 points) to 33815.90, while the S&P was off 0.92% to 4134.98. The NASDAQ was also down by 0.94% (or nearly 132 points) to 13818.41. Unfortunately, another fantastic jobless claims report was wasted. The number for last week was 547,000, which beat expectations that were north of 600K. It also marked a new pandemic low after bettering last week’s upwardly revised print of 586K. The big news of the week (at least until today) has been the better-than-expected start to earnings season. However, a good report doesn't always lead to a rise in share price. Take Intel (INTC) as the latest in a long string of examples. The chipmaker beat on both the top and bottom lines after the bell today, and even raised its guidance for the full year. But it wasn't enough for the market, which was concerned with a drop in the data center segment. Shares of INTC are down 2.8% afterhours as of this writing. Stocks have now slipped in three of the past four sessions, leaving the major indices with declines of more than 1% each heading into Friday. The Dow and S&P are on four-week winning streaks, while the NASDAQ has a three-week run. Today's Portfolio Highlights: Surprise Trader: Not only has Avnet (AVT) beaten the Zacks Consensus Estimate for the past four quarters, but it has also amassed an average surprise of 389% in that time. Now it has a positive Earnings ESP for the quarter coming after the bell on Wednesday. AVT is one of the world’s largest distributors of electronic components and computer products, which makes it part of a space in the top 6% of the Zacks Industry Rank. Dave added AVT on Thursday with a 12.5% allocation, while also selling Alcoa (AA) for a 6.6% return in two weeks. Read the full write-up for more. Insider Trader: In October of 2020, this portfolio cashed in two triple-digit profits from Bed Bath & Beyond (BBBY) as the specialty retailer was in the midst of a turnaround. So Tracey certainly paid attention when three insiders picked up shares in recent days. The CFO bought 20,000 shares on April 16, while two directors also got involved. Shares of BBBY are down 16.8% in the past month, but the company should be a big beneficiary of the upcoming economic boom. Therefore, shares look pretty cheap right now. The service had some cash on hand, so the editor added BBBY on Thursday with a 10% allocation. Get more specifics on this new addition in the complete commentary. Counterstrike: "Taxes are a fundamental driver of investment, so a drastic rise like that would really harm the market. While I think some hike was expected, a move this large was not. I don't think this could pass, but we have to realize this will be a big risk until the potential tax structure becomes clear. "That being said we have a new risk. In a market that is approaching bubble territory, just a little prick can cause violent sell offs like we saw today. The S&P stopped short of yesterday's lows so the 4120 will be the one to watch over the next week. "This week really got interesting quickly. More details on this should be out over the next 24 hours. Stay tuned!" -- Jeremy Mullin All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

US stocks trending lower hours before Wall Street opening bell

U.S. equity futures were trading lower ahead of the release of earnings reports from the country's largest retailers......»»

Category: topSource: foxnewsMay 17th, 2021

US stocks trending lower hours before the opening bell

U.S. equity futures are trending lower hours ahead of health care earnings reports Tuesday as services giant CVS Health and pharmaceutical firm Pfizer post results ahead of the opening bell. .....»»

Category: topSource: foxnewsMay 4th, 2021

US stocks trading higher hours before Tuesday"s opening bell on Wall Street

U.S. equity futures are trading higher hours before Tuesday's opening bell on Wall Street as more first-quarter earnings reports are released......»»

Category: topSource: foxnewsApr 27th, 2021

US stocks higher after fall back in prices caused by high bond yields Thursday

U.S. equity futures traded higher Friday hours before the opening bell after a fall back Thursday when the yield on the 10-year U.S. Treasury note widened to 1.72%, its highest since January 2020......»»

Category: topSource: foxnewsMar 19th, 2021

5 Stocks To Watch For September 23, 2021

Some of the stocks that may grab investor focus today are: Wall Street expects Accenture Plc (NYSE: ACN) to report quarterly earnings at $2.19 per share on revenue of $13.42 billion before the opening bell. Accenture shares rose 0.4% to $336.00 in after-hours trading. read more.....»»

Category: blogSource: benzinga8 hr. 14 min. ago

5 Stocks To Watch For September 23, 2021

Some of the stocks that may grab investor focus today are: Wall Street expects Accenture Plc (NYSE: ACN) to report quarterly earnings at $2.19 per share on revenue of $13.42 billion before the opening bell. Accenture shares rose 0.4% to $336.00 in after-hours trading. BlackBerry Ltd (NYSE: BB) reported a narrower-than-expected loss for its second quarter, while sales exceeded estimates. BlackBerry shares jumped 6.2% to $10.15 in after-hours ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga8 hr. 58 min. ago

Dow and S&P End Four-Day Skid after Fed Statement

Dow and S&P End Four-Day Skid after Fed Statement It took a Fed statement on Wednesday to snap the market out of its sour September mood and finally end a four-day losing streak. The major indices were each up approximately 1%. Basically, the economy is improving enough that scaling back the asset purchases “may soon be warranted”, perhaps as soon as the next meeting since the inflation and employment mandates are close to being met. For now, the Committee was unanimous in keeping rates near zero. “To summarize FOMC: Tapering is coming, but one month later than the market expected,” said Jeremy Mullin in Counterstrike. “The language hinted at a $20B taper in December, instead of November, which was enough for the market to rally after the statement came out. In reality, a month difference should not move markets, but the buy signal was triggered with the “no taper” language.” The S&P jumped 0.95% on Wednesday to 4395.64, while the Dow increased 1% (or about 338 points) to 34.258.32. These gains ended four consecutive days of losses for the indices. The NASDAQ rose 1.02% (or around 150 points) to 14,896.85. Stocks are still lower for the week with two sessions to go. But the Fed was only one concern this week. Now that the statement is behind us, investors are still nervous about China’s largest property developer Evergrande, which is in danger of defaulting. The company said it resolved a $36 million interest payment due tomorrow, which made enough room for the market to rise on Wednesday. However, an even bigger payment is due at the same time. Investors are concerned that such a problem in the world’s second-biggest economy could have an impact on the U.S., especially at a challenging time when the delta variant is limiting the economic recovery. Tomorrow will be interesting. Stocks often have big moves on the day after the FOMC meeting, and the Evergrande situation could exacerbate the volatility. We’ll also be getting the jobless claims number on Thursday. Today's Portfolio Highlights: Home Run Investor: It looks like Exp World Holdings (EXPI) could have a nice post-earnings drift higher, so Brian bought the stock on Wednesday to take part in the advance. This Zacks Rank #2 (Buy) provides cloud-based estate brokerage services. More specifically, it uses blockchain to record home sales and provide services to brokers. The editor was very impressed with EXPI’s topline growth of 182% in its most recent quarter, while earnings beat the Zacks Consensus Estimate by 380%. The valuation is rather high given its sales growth, but margins are slowly improving with plenty of room to continue rising. Make sure to read the complete commentary for a lot more on this new addition. By the way, Brian also sold Rada Electronics (RADA) today to make room for the new entrant. TAZR Trader: Even if the Fed sounds “lovey-dovey”, Kevin said yesterday that he would add more to the portfolio’s recent position in ProShares UltraPro Short QQQ ETF (SQQQ). Regardless of whatever kind of kneejerk reaction comes after the statement, the editor thinks the market is headed lower in the near term. Well, the Fed statement did send stocks higher by 1% on Wednesday, so Kevin stuck to his word and added more SQQQ today. Read the full write-up for more on his analysis moving forward. Technology Innovators: This portfolio easily had the top performer among all ZU services on Wednesday as Celestica (CLS) soared 17.5%. Brian added this electronics manufacturing services company back in late July after posting its eighth straight positive surprise. Today we found out that CLS raised its 2022 outlook and also entered into an agreement to acquire PCI Ltd. for $306 million in cash. CLS is currently up nearly 7% in the portfolio since being added less than two months ago. Options Trader: "(Stocks) were already up from the opening bell, but added to their gains after the Fed said they would likely begin tapering their bond-buying “soon,” which many have interpreted as their next meeting in November. "The market cheered the last time the Fed hinted that the tapering was likely to come sooner rather than later. And the market’s reaction was no different this time. "Why so happy about tightening monetary policy (albeit just a little)? "Because 1) it shows the Fed’s confidence in the recovery, and 2) it shows they won’t let inflation get too hot before acting. And that’s reassuring to the market. "As for rates, those expect to remain near zero for the foreseeable future." -- Kevin Matras Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacks11 hr. 58 min. ago

Rescued by the Fed Again?

S&P 500 recovered only to dive again – carving out a base? The bulls are attempting to, but neither value, nor tech, nor the credit markets are convincing. The dust is settling though, and the bears are equally in need of a fresh reason to sell – the intraday tug of war is entirely reasonable […] S&P 500 recovered only to dive again – carving out a base? The bulls are attempting to, but neither value, nor tech, nor the credit markets are convincing. The dust is settling though, and the bears are equally in need of a fresh reason to sell – the intraday tug of war is entirely reasonable as Evergrande failed to spook the markets more. Just wait for what happens when the markets come face to face with another unacknowledged event of this magnitude. In our era, it‘s about the contagion effect, manic-depressive market psychology, and uncertainty of the impact. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more It‘s not only about China real estate cooling down, spilling over to Hong Kong. Wtll the House approval on the bill to suspend fresh borrowing obstacles and avoid a partial shutdown do? What would the Senate say – and then everyone as the tax tsunami keeps approaching? Global liquidity isn‘t rising after all either. Fed taper is a side show, but still one that too many are glued to. The dollar would suffer if it doesn‘t materialize later today – and it won‘t be announced, which would make precious metals rejoice. Back to stocks, these are also likely to welcome no taper. The Fed has been already tightening (which means these days it was decreasing the pace of expansion) through the back door, bringing down inflation expectations in spite of the real world input costs, shipping rates and frail supply chains challenges on top of the job market issues. Transitory inflation is still the mainstream thesis – the shift to real assets will become more accentuated once the realization of a higher and entrenched inflation arrives. And it‘s not about real estate and owners‘ equivalent rent either. Commodities did welcome yesterday‘s reprieve, and Treasury yields are unlikely to clobber them the way perceived systemic risks could (did). In a decelerating real economy faced with numerous deflationary pressures, the slow and steady rising yields phase, is deferred for now. And when these do rise again, it may or may not be about returning economic growth, but forced by the systemic realities. Remember that rates are very low by historic comparisons, and the resilence to absorb a modest rise (think 10-year more than a bit above 2%) won‘t be there without consequences. Cashing in on the S&P 500 short profits yesterday, was reasonable from the total portfolio risk point of view (did I say a fresh high was reached?). Let‘s move right into the charts (all courtesy of www.stockcharts.com). S&P 500 and Nasdaq Outlook Daily hesitation followed by more downside, but volume is decreasing – stocks look readying an upswing attempt. Credit Markets High yield corporate bonds merely kept opening gains – there is still hesitation, and the window of opportunity for the bulls is narrow. Gold, Silver and Miners Positive price action of gold, joined by silver – the waiting miners reveal that a little consolidation is likely before the Fed speaks. Crude Oil Oil stocks show that the appetite for oil might be returning, and that‘s confirmed by the volume examination. Commodities such as oil and copper stand to benefit from calming the Evergrande and central bank jitters. Copper Copper gave up opening losses only to rebound before the closing bell. Volume could have been larger, but the beaten down red metal can keep rebounding at its own pace – the smaller volume is an indication it won‘t be a one-way path. Bitcoin and Ethereum Bitcoin and Ethereum haven‘t really recovered from the selloff, and the bears are holding the upper hand now. Summary My yesterday‘s question „Is the selling over, is it not?“ has the same answer „Still inconclusive, but time for the bears is running short.“ It looks like the markets are positioning for a return to risk-on based on today‘s FOMC, which is what quite a few would like to take as an opportunity to sell into strength. The point is the Fed won‘t surprise today, and the price gyrations are likely to continue, albeit at a lesser magnitude. Thank you for having read today‘s free analysis, which is available in full at my homesite. There, you can subscribe to the free Monica‘s Insider Club, which features real-time trade calls and intraday updates for all the five publications: Stock Trading Signals, Gold Trading Signals, Oil Trading Signals, Copper Trading Signals and Bitcoin Trading Signals. Thank you, Monica Kingsley Stock Trading Signals Gold Trading Signals Oil Trading Signals Copper Trading Signals Bitcoin Trading Signals www.monicakingsley.co mk@monicakingsley.co All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice. Updated on Sep 22, 2021, 9:27 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk15 hr. 46 min. ago

Stitch Fix (SFIX) Gains on Q4 Earnings Beat, Revenues Rise Y/Y

Stitch Fix (SFIX) delivers an earnings surprise as well as impressive revenues for fourth-quarter fiscal 2021 on solid performance across its business, mainly in Women's, Kids and the UK. Shares of Stitch Fix, Inc. SFIX climbed more than 16% in after-hours trading on Sep 21 post the announcement of better-than-expected earnings and revenue results for fourth-quarter fiscal 2021. Both metrics compared favorably with the year-earlier quarter’s tallies as well. Robust performance across its business in Women’s, Kids and the UK aided its overall results. Management highlighted that the company crossed revenues of $2 billion, annually, in fiscal 2021 for the first time. Net revenues also grew 22.8% from the last fiscal year’s figure to $2.1 billion.Stitch Fix has been enriching its client experience across Fix and direct buy (currently known as Freestyle). It came up with several feature upgrades including expanded branded shops and launched Fix Preview for the Men’s and Women’s clients. Management is also focused on expanding the company’s product offerings and driving awareness of Stitch Fix for personalized shopping.Shares of Stitch Fix have increased 54% in the past year compared with the industry’s 72.1% rally.Q4 DetailsAfter witnessing losses in the preceding two quarters, Stitch Fix posted a surprise profit in the fourth quarter of fiscal 2021. The company posted earnings of 19 cents a share. The Zacks Consensus Estimate was of a loss of 14 cents per share. The bottom line also compared favorably with the loss of 44 cents per share reported in the prior-year quarter.The company recorded net revenues of $571.2 million, reflecting an increase of 29% from the year-ago quarter’s figure. The metric also outpaced the Zacks Consensus Estimate of $548 million. Continued strength across Women’s Fix, outsized growth in Kids and the UK, and an advancement in the Freestyle channel fueled the top-line performance. The company witnessed progress in both the fixed and direct buy offering. Robust demand trends and a solid momentum in its fundamentals also contributed to the performance.Stitch Fix, Inc. Price, Consensus and EPS Surprise Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. QuoteStitch Fix witnessed strength in product categories. Footwear delivered a higher percentage of revenues for Freestyle than for Fix across women’s and men’s sections.Stitch Fix has active clients of 4,165,000 as of Jul 31, 2021, up 18% from the prior-year quarter’s level. Net revenue per active client jumped nearly 4% year over year to $505. The company experienced positive trends in client engagement and retention with keep rates touching all-time highs and client churn rates closing the year at all-time lows.In the fiscal fourth quarter, gross profit surged 33.4% to $265.5 million. Also, gross margin increased 160 basis points (bps) to 46.5% on elevated product margins and lower transportation costs through efficiency gains in spite of supply-chain issues and higher carrier freight rates.Selling, general and administrative (SG&A) expenses increased 14.7% to $244.7 million. Excluding advertising, other SG&A as a rate of sales decreased 110 bps to 37.2%. The company reported an adjusted EBITDA of $55.4 million in the quarter under review, significantly up from the adjusted EBITDA of $11.8 million reported in the year-ago quarter. The upside was driven by higher revenues along with robust gross margins on higher product margins and efficiency in transportation costs.Other Financial AspectsStitch Fix ended the quarter with no debt along with cash and cash equivalents of $129.8 million and shareholders’ equity of $460.8 million.This currently Zacks Rank #4 (Sell) company used $15.7 million cash from operating activities during fiscal 2021. Also, it reported a negative free cash flow of $50.9 million for the same period.Things to NoteThe company’s Plus offering delivered 51% revenue growth in fiscal 2021. Its Plus penetration presently represents nearly half the penetration of the overall women’s market. The UK business also registered triple-digit revenue growth this fiscal with a solid client base and higher unit economics. Kids’ unit is also growing rapidly with revenues exceeding 75% in fiscal 2021.Management is on track with a significant transformation of its business in several areas including the expansion of Shop to the existing client base, the launch and scale of Fix Preview, and investments in systems and people.Management is constantly leveraging its product innovation, evolving assortments and using personalized experience to gain more clients. The expansion of personalized direct purchases for the clients is also impressive. In fiscal 2022, management looks to enhance and broaden its Freestyle offering in several ways.In a separate press release, the company announced the launch of Stitch Fix Freestyle, which offers quite a distinct shopping experience. This platform allows any customer to discover and buy curated items according to their style preferences, fit and size. Anyone can buy items directly from Stitch Fix, irrespective of ordering a Fix first. This facility offers an effective way to shop articles from a wider range of accessible categories and departments, brands and seasonal trending shops. This caters to customer style needs across casual, workwear, occasion, active, athleisure, loungewear, sleepwear and more.Stitch Fix Freestyle boasts a variety of unique and new features including Trending for You, Complete Your Looks, Featured Brands, Shop by Department among others. This looks to offer brands like Free People, Universal Standard, Vince, Madewell, Mother, Rag & Bone, The North Face, Club Monaco, Girlfriend Collective. Management looks forward to introduce styles from new brands like Adidas, Good American, Vans, Levis, DKNY and Champion.OutlookFor the first quarter of fiscal 2022, Stitch Fix expects net revenues in the range of $560-$575 million, suggesting growth of 14-17% from the year-ago period’s reported figure. Adjusted EBITDA is envisioned in the bracket of 15-20 million with a margin of 2.7-3.5%. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $598.8 million.For fiscal 2022, management projects net revenue growth of 15% or higher from the year-ago reported figure and an adjusted EBITDA margin at 2% or more of net revenues.Hot Stocks in RetailCapri Holdings CPRI has a long-term earnings growth rate of 27.2% and a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.Abercrombie ANF presently has a long-term earnings growth rate of 18% and a Zacks Rank of 1.Children’s Place PLCE boasts a long-term earnings growth rate of 8% and is Zacks #1 Ranked at present. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report The Childrens Place, Inc. (PLCE): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis Report Capri Holdings Limited (CPRI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks22 hr. 14 min. ago

Labor Shortages Hit FedEx Q1 Earnings: ETFs in Focus

FedEx lagged earnings estimates but beat on revenues. It cut its financial outlook for the fiscal year 2022 due to labor shortages. After the closing bell on Sep 22, transport bellwether FedEx FDX delivered mixed first-quarter fiscal 2022 results. The courier company lagged earnings estimates but beat on revenues. It cut its financial outlook for the fiscal year 2022 due to labor shortages.Earnings per share came in at $4.37, missing the Zacks Consensus Estimate of $4.96 and were below the year-ago earnings of $4.87. Revenues grew 14% year over year to $22 billion and edged past the estimated $21.8 billion. Increased labor costs took a toll on the company’s profitability. Staffing problems resulted in a $450 million year-over-year increase in costs during the quarter due to higher wage rates and overtime, increased spending on third-party transportation services and shipping hiccups.For fiscal 2022, the company lowered its adjusted earnings per share forecast to the range of  $19.75-$21.00 from $20.50-$21.50. The low end of the guidance is below the Zacks Consensus Estimate of $21.27 (see: all the Industrials ETFs here).Driven by fears of labor shortages and the resultant rise in cost, FDX shares fell as much as 4.6% in after-market hours. FedEx currently has a Zacks Rank #3 (Hold) and an impressive VGM Score of A.ETFs to WatchThis has put ETFs with a higher allocation to FedEx in the spotlight. Below we have highlighted some of the funds:iShares U.S. Transportation ETF IYTThe ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 49 securities. Of these, FedEx occupies the seventh position with 4.4% of the assets. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 32.1% and 28.7% share, respectively, while trucking (21.3%) and airlines (16.1%) round off the next two. The fund has accumulated $1.5 billion in AUM while it sees a good trading volume of around 204,000 shares a day. It charges 41 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).First Trust Nasdaq Transportation ETF FTXRThis fund offers exposure to the 29 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx holds 3.9% share in the basket. Trucking, railroads, airlines, automobiles, and transport services occupy the top spots in the basket. FTXR has amassed $1.1 billion in its asset base and charges 60 bps in annual fees. The average trading volume is moderate at 81,000 shares. The fund has a Zacks ETF Rank #2.SPDR S&P Transportation ETF XTN  This fund follows the S&P Transportation Select Industry Index and uses almost an equal-weight methodology for each security. Holding 49 stocks with an AUM of $485.3 million, FedEx accounts for 2.1% share in the basket. The product is heavily exposed to trucking, which represents more than one-third of the portfolio while airlines, and air freight & logistics make up 25.7% and 20% share, respectively. The fund charges 35 bps in fees per year from investors and trades in a volume of about 61,000 shares a day, on average. It has a Zacks ETF Rank #2 with a Hugh risk outlook (read: Buy These 7 Amazing ETFs Trading at Low P/E Ratios).Emles Home ETF LIVThis fund provides investors access to high quality companies that potentially stand to benefit from the structural shift toward home-based lifestyle by tracking the Emles Home Lifestyle Index. It holds 31 stocks in its basket with FedEx occupying 2% share. The product has accumulated $3.5 million in its asset since its inception last October and trades in an average daily volume of under 1,000 shares. It charges 49 bps in annual fees. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FedEx Corporation (FDX): Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports Emles Home ETF (LIV): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Things To Note Ahead of Thor"s (THO) Q4 Earnings Release

While Thor's (THO) fiscal Q4 revenues are likely to have gotten a boost from the acquisitions of Erwin Hymer Group and TiffinHomes, soaring commodity and SG&A costs may have played spoilsports. Thor Industries THO is set to release fourth-quarter fiscal 2021 results on Sep 28, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.88 and $3.33 billion, respectively.The leading recreational vehicle (RV) maker posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues across all segments. Thor surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average being 46%. This is depicted in the graph below:Thor Industries, Inc. Price and EPS Surprise Thor Industries, Inc. price-eps-surprise | Thor Industries, Inc. QuoteTrend in Estimate RevisionsThe Zacks Consensus Estimate for fiscal fourth-quarter earnings per share has been revised upward by 3 cents in the past seven days. The bottom-line projection implies year-over-year growth of 34.6%. The Zacks Consensus Estimate for quarterly revenues also suggests a year-over-year increase of 40.8%.Factors at PlayEconomic growth — buoyed by widespread vaccination drive and massive fiscal stimulus — is set to have a positive impact on Thor’s fourth-quarter fiscal 2021 results. Even after the gradual easing of travel restrictions, the demand for RVs continued its momentum because of safe travel enthusiasts and millennials’ zeal for off-the-grid living. These factors will positively impact Thor’s results for the quarter to be reported.The Zacks Consensus Estimate for fourth-quarter fiscal 2021 revenues from the North American Motorized RVs segment is pegged at $735 million, indicating a significant rise from $367 million recorded in the comparable year-ago period. The consensus mark for revenues from the North American Towable RVs unit is $1,665 million, implying a year-over-year increase of 41.1%. Thor’s quarterly revenues from these two segments are expected to have been buoyed by the TiffinHomes buyout. The acquisition of Erwin Hymer Group — which bolstered Thor’s position in Europe — is set to have aided revenues of the European RVs unit.On a somewhat discouraging note, supply constraints and the shortage of various RV components in Europe and North America might have posed hiccups for the company in the July-end quarter. A tight labor market, and high commodity and SG&A costs are also likely to have dented its fiscal fourth-quarter 2021 margins.Earnings WhispersOur proven model does not conclusively predict an earnings beat for Thor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Earnings ESP: It has an Earnings ESP of -3.62%. This is because the Most Accurate Estimate of $2.78 per share is 10 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Thor — whose peers include Winnebago Industries WGO, REV Group, Inc. REVG and LCI Industries LCII — carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thor Industries, Inc. (THO): Free Stock Analysis Report Winnebago Industries, Inc. (WGO): Free Stock Analysis Report LCI Industries (LCII): Free Stock Analysis Report REV Group, Inc. (REVG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Futures Bounce On Evergrande Reprieve With Fed Looming

Futures Bounce On Evergrande Reprieve With Fed Looming Despite today's looming hawkish FOMC meeting in which Powell is widely expected to unveil that tapering is set to begin as soon as November and where the Fed's dot plot may signal one rate hike in 2022, futures climbed as investor concerns over China's Evergrande eased after the property developer negotiated a domestic bond payment deal. Commodities rallied while the dollar was steady. Contracts on the S&P 500 and Nasdaq 100 flipped from losses to gains as China’s central bank boosted liquidity when it injected a gross 120BN in yuan, the most since January... ... and investors mulled a vaguely-worded statement from the troubled developer about an interest payment.  S&P 500 E-minis were up 23.0 points, or 0.53%, at 7:30 a.m. ET. Dow E-minis were up 199 points, or 0.60%, and Nasdaq 100 E-minis were up 44.00 points, or 0.29%. Among individual stocks, Fedex fell 5.8% after the delivery company cut its profit outlook on higher costs and stalled growth in shipments. Morgan Stanley says it sees the company’s 1Q issues getting “tougher from here.” Commodity-linked oil and metal stocks led gains in premarket trade, while a slight rise in Treasury yields supported major banks. However, most sectors were nursing steep losses in recent sessions. Here are some of the biggest U.S. movers: Adobe (ADBE US) down 3.1% after 3Q update disappointed the high expectations of investors, though the broader picture still looks solid, Morgan Stanley said in a note Freeport McMoRan (FCX US), Cleveland- Cliffs (CLF US), Alcoa (AA US) and U.S. Steel (X US) up 2%-3% premarket, following the path of global peers as iron ore prices in China rallied Aethlon Medical (AEMD US) and Exela Technologies (XELAU US) advance along with other retail traders’ favorites in the U.S. premarket session. Aethlon jumps 21%; Exela up 8.3% Other so-called meme stocks also rise: ContextLogic +1%; Clover Health +0.9%; Naked Brand +0.9%; AMC +0.5% ReWalk Robotics slumps 18% in U.S. premarket trading, a day after nearly doubling in value Stitch Fix (SFIX US) rises 15.7% in light volume after the personal styling company’s 4Q profit and sales blew past analysts’ expectations Hyatt Hotels (H US) seen opening lower after the company launches a seven-million-share stock offering Summit Therapeutics (SMMT US) shares fell as much as 17% in Tuesday extended trading after it said the FDA doesn’t agree with the change to the primary endpoint that has been implemented in the ongoing Phase III Ri-CoDIFy studies when combining the studies Marin Software (MRIN US) surged more than 75% Tuesday postmarket after signing a new revenue-sharing agreement with Google to develop its enterprise technology platforms and software products The S&P 500 had fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations. The Nasdaq fell the least among its peers in recent sessions, as investors pivoted back into big technology names that had proven resilient through the pandemic. Focus now turns to the Fed's decision, due at 2 p.m. ET where officials are expected to signal a start to scaling down monthly bond purchases (see our preview here).  The Fed meeting comes after a period of market volatility stoked by Evergrande’s woes. China’s wider property-sector curbs are also feeding into concerns about a slowdown in the economic recovery from the pandemic. “Chair Jerome Powell could hint at the tapering approaching shortly,” said Sébastien Barbé, a strategist at Credit Agricole CIB. “However, given the current uncertainty factors (China property market, Covid, pace of global slowdown), the Fed should remain cautious when it comes to withdrawing liquidity support.” Meanwhile, confirming what Ray Dalio said that the taper will just bring more QE, Governing Council member Madis Muller said the  European Central Bank may boost its regular asset purchases once the pandemic-era emergency stimulus comes to an end. “Dovish signals could unwind some of the greenback’s gains while offering relief to stock markets,” Han Tan, chief market analyst at Exinity Group, wrote in emailed comments. A “hawkish shift would jolt markets, potentially pushing Treasury yields and the dollar past the upper bound of recent ranges, while gold and equities would sell off hunting down the next levels of support.” China avoided a major selloff as trading resumed following a holiday, after the country’s central bank boosted its injection of short-term cash into the financial system. MSCI’s Asia-Pacific index declined for a third day, dragged lower by Japan. Stocks were also higher in Europe. Basic resources - which bounced from a seven month low - and energy were among the leading gainers in the Stoxx Europe 600 index as commodity prices steadied after Beijing moved to contain fears of a spiraling debt crisis. Entain Plc rose more than 7%, extending Tuesday’s gain as it confirmed it received a takeover proposal from DraftKings Inc. Peer Flutter Entertainment Plc climbed after settling a legal dispute.  Here are some of the biggest European movers today: Entain shares jump as much as 11% after DraftKings Inc. offered to acquire the U.K. gambling company for about $22.4 billion. Vivendi rises as much as 3.1% in Paris, after Tuesday’s spinoff of Universal Music Group. Legrand climbs as much as 2.1% after Exane BNP Paribas upgrades to outperform and raises PT to a Street-high of EU135. Orpea shares falls as much as 2.9%, after delivering 1H results that Jefferies (buy) says were a “touch” below consensus. Bechtle slides as much as 5.1% after Metzler downgrades to hold from buy, saying persistent supply chain problems seem to be weighing on growth. Sopra Steria drops as much as 4.1% after Stifel initiates coverage with a sell, citing caution on company’s M&A strategy Despite the Evergrande announcement, Asian stocks headed for their longest losing streak in more than a month amid continued China-related concerns, with traders also eying policy decisions from major central banks. The MSCI Asia Pacific Index dropped as much as 0.7% in its third day of declines, with TSMC and Keyence the biggest drags. China’s CSI 300 tumbled as much as 1.9% as the local market reopened following a two-day holiday. However, the gauge came off lows after an Evergrande unit said it will make a bond interest payment and as China’s central bank boosted liquidity.  Taiwan’s equity benchmark led losses in Asia on Wednesday, dragged by TSMC after a two-day holiday, while markets in Hong Kong and South Korea were closed. Key stock gauges in Australia, Indonesia and Vietnam rose “A liquidity injection from the People’s Bank of China accompanied the Evergrande announcement, which only served to bolster sentiment further,” according to DailyFX’s Thomas Westwater and Daniel Dubrovsky. “For now, it appears that market-wide contagion risk linked to a potential Evergrande collapse is off the table.” Japanese equities fell for a second day amid global concern over China’s real-estate sector, as the Bank of Japan held its key stimulus tools in place while flagging pressures on the economy. Electronics makers were the biggest drag on the Topix, which declined 1%. Daikin and Fanuc were the largest contributors to a 0.7% loss in the Nikkei 225. The BOJ had been expected to maintain its policy levers ahead of next week’s key ruling party election. Traders are keenly awaiting the Federal Reserve’s decision due later for clues on the U.S. central banks plan for tapering stimulus. “Markets for some time have been convinced that the BOJ has reached the end of the line on normalization and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave,” UOB economist Alvin Liew wrote in a note. “Attention for the BOJ will now likely shift to dealing with the long-term climate change issues.” In the despotic lockdown regime that is Australia, the S&P/ASX 200 index rose 0.3% to close at 7,296.90, reversing an early decline in a rally led by mining and energy stocks. Banks closed lower for the fourth day in a row. Champion Iron was among the top performers after it was upgraded at Citi. IAG was among the worst performers after an earthquake caused damage to buildings in Melbourne. In New Zealand, the S&P/NZX 50 index rose 0.3% to 13,215.80 In FX, commodity currencies rallied as concerns about China Evergrande Group’s debt troubles eased as China’s central bank boosted liquidity and investors reviewed a statement from the troubled developer about an interest payment. Overnight implied volatility on the pound climbed to the highest since March ahead of Bank of England’s meeting on Thursday. The British pound weakened after Business Secretary Kwasi Kwarteng warnedthat people should prepare for longer-term high energy prices amid a natural-gas shortage that sent power costs soaring. Several U.K. power firms have stopped taking in new clients as small energy suppliers struggle to meet their previous commitments to sell supplies at lower prices. Overnight volatility in the euro rises above 10% for the first time since July ahead of the Federal Reserve’s monetary policy decision announcement. The Aussie jumped as much as 0.5% as iron-ore prices rebounded. Spot surged through option-related selling at 0.7240 before topping out near 0.7265 strikes expiring Wednesday, according to Asia- based FX traders.  Elsewhere, the yen weakened and commodity-linked currencies such as the Australian dollar pushed higher. In rates, the dollar weakened against most of its Group-of-10 peers. Treasury futures were under modest pressure in early U.S. trading, leaving yields cheaper by ~1.5bp from belly to long-end of the curve. The 10-year yield was at ~1.336% steepening the 2s10s curve by ~1bp as the front-end was little changed. Improved risk appetite weighed; with stock futures have recovering much of Tuesday’s losses as Evergrande concerns subside. Focal point for Wednesday’s session is FOMC rate decision at 2pm ET.   FOMC is expected to suggest it will start scaling back asset purchases later this year, while its quarterly summary of economic projections reveals policy makers’ expectations for the fed funds target in coming years in the dot-plot update; eurodollar positions have emerged recently that anticipate a hawkish shift Bitcoin dropped briefly below $40,000 for the first time since August amid rising criticism from regulators, before rallying as the mood in global markets improved. In commodities, Iron ore halted its collapse and metals steadied. Oil advanced for a second day. Bitcoin slid below $40,000 for the first time since early August before rebounding back above $42,000.   To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Market Snapshot S&P 500 futures up 0.4% to 4,362.25 STOXX Europe 600 up 0.5% to 461.19 MXAP down 0.7% to 199.29 MXAPJ down 0.4% to 638.39 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.4% to 3,628.49 Sensex little changed at 59,046.84 Australia S&P/ASX 200 up 0.3% to 7,296.94 Kospi up 0.3% to 3,140.51 Brent Futures up 1.5% to $75.47/bbl Gold spot up 0.0% to $1,775.15 U.S. Dollar Index little changed at 93.26 German 10Y yield rose 0.6 bps to -0.319% Euro little changed at $1.1725 Top Overnight News from Bloomberg What would it take to knock the U.S. recovery off course and send Federal Reserve policy makers back to the drawing board? Not much — and there are plenty of candidates to deliver the blow The European Central Bank will discuss boosting its regular asset purchases once the pandemic-era emergency stimulus comes to an end, but any such increase is uncertain, Governing Council member Madis Muller said Investors seeking hints about how Beijing plans to deal with China Evergrande Group’s debt crisis are training their cross hairs on the central bank’s liquidity management A quick look at global markets courtesy of Newsquawk Asian equity markets traded mixed as caution lingered ahead of upcoming risk events including the FOMC, with participants also digesting the latest Evergrande developments and China’s return to the market from the Mid-Autumn Festival. ASX 200 (+0.3%) was positive with the index led higher by the energy sector after a rebound in oil prices and as tech also outperformed, but with gains capped by weakness in the largest-weighted financials sector including Westpac which was forced to scrap the sale of its Pacific businesses after failing to secure regulatory approval. Nikkei 225 (-0.7%) was subdued amid the lack of fireworks from the BoJ announcement to keep policy settings unchanged and ahead of the upcoming holiday closure with the index only briefly supported by favourable currency outflows. Shanghai Comp. (+0.4%) was initially pressured on return from the long-weekend and with Hong Kong markets closed, but pared losses with risk appetite supported by news that Evergrande’s main unit Hengda Real Estate will make coupon payments due tomorrow, although other sources noted this is referring to the onshore bond payments valued around USD 36mln and that there was no mention of the offshore bond payments valued at USD 83.5mln which are also due tomorrow. Meanwhile, the PBoC facilitated liquidity through a CNY 120bln injection and provided no surprises in keeping its 1-year and 5-year Loan Prime Rates unchanged for the 17th consecutive month at 3.85% and 4.65%, respectively. Finally, 10yr JGBs were flat amid the absence of any major surprises from the BoJ policy announcement and following the choppy trade in T-notes which were briefly pressured in a knee-jerk reaction to the news that Evergrande’s unit will satisfy its coupon obligations tomorrow, but then faded most of the losses as cautiousness prevailed. Top Asian News Gold Steady as Traders Await Outcome of Fed Policy Meeting Evergrande Filing on Yuan Bond Interest Leaves Analysts Guessing Singapore Category E COE Price Rises to Highest Since April 2014 Asian Stocks Fall for Third Day as Focus Turns to Central Banks European equities (Stoxx 600 +0.5%) trade on a firmer footing in the wake of an encouraging APAC handover. Focus overnight was on the return of Chinese participants from the Mid-Autumn Festival and news that Evergrande’s main unit, Hengda Real Estate will make coupon payments due tomorrow; however, we await indication as to whether they will meet Thursday’s offshore payment deadline as well. Furthermore, the PBoC facilitated liquidity through a CNY 120bln injection whilst keeping its 1-year and 5-year Loan Prime Rates unchanged (as expected). Note, despite gaining yesterday and today, thus far, the Stoxx 600 is still lower to the tune of 0.7% on the week. Stateside, futures are also trading on a firmer footing ahead of today’s FOMC policy announcement, at which, market participants will be eyeing any clues for when the taper will begin and digesting the latest dot plot forecasts. Furthermore, the US House voted to pass the bill to fund the government through to December 3rd and suspend the debt limit to end-2022, although this will likely be blocked by Senate Republicans. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources and Oil & Gas amid upside in the metals and energy complex. Elsewhere, Travel & Leisure is faring well amid further upside in Entain (+6.1%) with the Co. noting it rejected an earlier approach from DraftKings at GBP 25/shr with the new offer standing at GBP 28/shr. Additionally for the sector, Flutter Entertainment (+4.1%) are trading higher after settling the legal dispute between the Co. and Commonwealth of Kentucky. Elsewhere, in terms of deal flow, Iliad announced that it is to acquire UPC Poland for around USD 1.8bln. Top European News Energy Cost Spike Gets on EU Ministers’ Green Deal Agenda Travel Startup HomeToGo Gains in Frankfurt Debut After SPAC Deal London Stock Exchange to Shut Down CurveGlobal Exchange EU Banks Expected to Add Capital for Climate Risk, EBA Says In FX, trade remains volatile as this week’s deluge of global Central Bank policy meetings continues to unfold amidst fluctuations in broad risk sentiment from relatively pronounced aversion at various stages to a measured and cautious pick-up in appetite more recently. Hence, the tide is currently turning in favour of activity, cyclical and commodity currencies, albeit tentatively in the run up to the Fed, with the Kiwi and Aussie trying to regroup on the 0.7000 handle and 0.7350 axis against their US counterpart, and the latter also striving to shrug off negative domestic impulses like a further decline below zero in Westpac’s leading index and an earthquake near Melbourne. Next up for Nzd/Usd and Aud/Usd, beyond the FOMC, trade data and preliminary PMIs respectively. DXY/CHF/EUR/CAD - Notwithstanding the overall improvement in market tone noted above, or another major change in mood and direction, the Dollar index appears to have found a base just ahead of 93.000 and ceiling a similar distance away from 93.500, as it meanders inside those extremes awaiting US existing home sales that are scheduled for release before the main Fed events (policy statement, SEP and post-meeting press conference from chair Powell). Indeed, the Franc, Euro and Loonie have all recoiled into tighter bands vs the Greenback, between 0.9250-26, 1.1739-17 and 1.2831-1.2770, but with the former still retaining an underlying bid more evident in the Eur/Chf cross that is consolidating under 1.0850 and will undoubtedly be acknowledged by the SNB tomorrow. Meanwhile, Eur/Usd has hardly reacted to latest ECB commentary from Muller underpinning that the APP is likely to be boosted once the PEPP envelope is closed, though Usd/Cad is eyeing a firm rebound in oil prices in conjunction with hefty option expiry interest at the 1.2750 strike (1.8 bn) that may prevent the headline pair from revisiting w-t-d lows not far beneath the half round number. GBP/JPY - The major laggards, as Sterling slips slightly further beneath 1.3650 against the Buck to a fresh weekly low and Eur/Gbp rebounds from circa 0.8574 to top 0.8600 on FOMC day and T-1 to super BoE Thursday. Elsewhere, the Yen has lost momentum after peaking around 109.12 and still not garnering sufficient impetus to test 109.00 via an unchanged BoJ in terms of all policy settings and guidance, as Governor Kuroda trotted out the no hesitation to loosen the reins if required line for the umpteenth time. However, Usd/Jpy is holding around 109.61 and some distance from 1.1 bn option expiries rolling off between 109.85-110.00 at the NY cut. SCANDI/EM - Brent’s revival to Usd 75.50+/brl from sub-Usd 73.50 only yesterday has given the Nok another fillip pending confirmation of a Norges Bank hike tomorrow, while the Zar has regained some poise with the aid of firmer than forecast SA headline and core CPI alongside a degree of retracement following Wednesday’s breakdown of talks on a pay deal for engineering workers that prompted the union to call a strike from early October. Similarly, the Cnh and Cny by default have regrouped amidst reports that the CCP is finalising details to restructure Evergrande into 3 separate entities under a plan that will see the Chinese Government take control. In commodities, WTI and Brent are firmer this morning though once again fresh newsflow for the complex has been relatively slim and largely consisting of gas-related commentary; as such, the benchmarks are taking their cue from the broader risk tone (see equity section). The improvement in sentiment today has brought WTI and Brent back in proximity to being unchanged on the week so far as a whole; however, the complex will be dictated directly by the EIA weekly inventory first and then indirectly, but perhaps more pertinently, by today’s FOMC. On the weekly inventories, last nights private release was a larger than expected draw for the headline and distillate components, though the Cushing draw was beneath expectations; for today, consensus is a headline draw pf 2.44mln. Moving to metals where the return of China has seen a resurgence for base metals with LME copper posting upside of nearly 3.0%, for instance. Albeit there is no fresh newsflow for the complex as such, so it remains to be seen how lasting this resurgence will be. Finally, spot gold and silver are firmer but with the magnitude once again favouring silver over the yellow metal. US Event Calendar 10am: Aug. Existing Home Sales MoM, est. -1.7%, prior 2.0% 2pm: Sept. FOMC Rate Decision (Lower Boun, est. 0%, prior 0% DB's Jim Reid concludes the overnight wrap All eyes firmly on China this morning as it reopens following a 2-day holiday. As expected the indices there have opened lower but the scale of the declines are being softened by the PBoC increasing its short term cash injections into the economy. They’ve added a net CNY 90bn into the system. On Evergrande, we’ve also seen some positive headlines as the property developers’ main unit Hengda Real Estate Group has said that it will make coupon payment for an onshore bond tomorrow. However, the exchange filing said that the interest payment “has been resolved via negotiations with bondholders off the clearing house”. This is all a bit vague and doesn’t mention the dollar bond at this stage. Meanwhile, Bloomberg has reported that Chinese authorities have begun to lay the groundwork for a potential restructuring that could be one of the country’s biggest, assembling accounting and legal experts to examine the finances of the group. All this follows news from Bloomberg yesterday that Evergrande missed interest payments that had been due on Monday to at least two banks. In terms of markets the CSI (-1.11%), Shanghai Comp (-0.29%) and Shenzhen Comp (-0.53%) are all lower but have pared back deeper losses from the open. We did a flash poll in the CoTD yesterday (link here) and after over 700 responses in a couple of hours we found only 8% who we thought Evergrande would still be impacting financial markets significantly in a month’s time. 24% thought it would be slightly impacting. The other 68% thought limited or no impact. So the world is relatively relaxed about contagion risk for now. The bigger risk might be the knock on impact of weaker Chinese growth. So that’s one to watch even if you’re sanguine on the systemic threat. Craig Nicol in my credit team did a good note yesterday (link here) looking at the contagion risk to the broader HY market. I thought he summed it up nicely as to why we all need to care one way or another in saying that “Evergrande is the largest corporate, in the largest sector, of the second largest economy in the world”. For context AT&T is the largest corporate borrower in the US market and VW the largest in Europe. Turning back to other Asian markets now and the Nikkei (-0.65%) is down but the Hang Seng (+0.51%) and Asx (+0.58%) are up. South Korean markets continue to remain closed for a holiday. Elsewhere, yields on 10y USTs are trading flattish while futures on the S&P 500 are up +0.10% and those on the Stoxx 50 are up +0.21%. Crude oil prices are also up c.+1% this morning. In other news, the Bank of Japan policy announcement overnight was a non-event as the central bank maintained its yield curve target while keeping the policy rate and asset purchases plan unchanged. The central bank also unveiled more details of its green lending program and said that it would immediately start accepting applications and would begin making the loans in December. The relatively calm Asian session follows a stabilisation in markets yesterday following their rout on Monday as investors looked forward to the outcome of the Fed’s meeting later today. That said, it was hardly a resounding performance, with the S&P 500 unable to hold on to its intraday gains and ending just worse than unchanged after the -1.70% decline the previous day as investors remained vigilant as to the array of risks that continue to pile up on the horizon. One of these is in US politics and legislators seem no closer to resolving the various issues surrounding a potential government shutdown at the end of the month, along with a potential debt ceiling crisis in October, which is another flashing alert on the dashboard for investors that’s further contributing to weaker sentiment right now. Looking ahead now, today’s main highlight will be the latest Federal Reserve decision along with Chair Powell’s subsequent press conference, with the policy decision out at 19:00 London time. Markets have been on edge for any clues about when the Fed might begin to taper asset purchases, but concern about tapering actually being announced at this meeting has dissipated over recent weeks, particularly after the most recent nonfarm payrolls in August came in at just +235k, and the monthly CPI print also came in beneath consensus expectations for the first time since November. In terms of what to expect, our US economists write in their preview (link here) that they see the statement adopting Chair Powell’s language that a reduction in the pace of asset purchases is appropriate “this year”, so long as the economy remains on track. They see Powell maintaining optionality about the exact timing of that announcement, but they think that the message will effectively be that the bar to pushing the announcement beyond November is relatively high in the absence of any material downside surprises. This meeting also sees the release of the FOMC’s latest economic projections and the dot plot, where they expect there’ll be an upward drift in the dots that raises the number of rate hikes in 2023 to 3, followed by another 3 increases in 2024. Back to yesterday, and as mentioned US equity markets fell for a second straight day after being unable to hold on to earlier gains, with the S&P 500 slightly lower (-0.08%). High-growth industries outperformed with biotech (+0.38%) and semiconductors (+0.18%) leading the NASDAQ (+0.22%) slightly higher, however the Dow Jones (-0.15%) also struggled. Europe saw a much stronger performance though as much of the US decline came after Europe had closed. The STOXX 600 gained +1.00% to erase most of Monday’s losses, with almost every sector in the index ending the day in positive territory. With risk sentiment improving for much of the day yesterday, US Treasuries sold off slightly and by the close of trade yields on 10yr Treasuries were up +1.2bps to 1.3226%, thanks to a +1.8bps increase in real yields. However, sovereign bonds in Europe told a different story as yields on 10yr bunds (-0.3bps), OATs (-0.3bps) and BTPs (-1.9bps) moved lower. Other safe havens including gold (+0.59%) and silver (+1.02%) also benefited, but this wasn’t reflected across commodities more broadly, with Bloomberg’s Commodity Spot Index (-0.30%) losing ground for a 4th consecutive session. Democratic Party leaders plan to vote on the Senate-approved $500bn bipartisan infrastructure bill next Monday, even with no resolution to the $3.5tr budget reconciliation measure that encompasses the remainder of the Biden Administration’s economic agenda. Democrats continue to work on the reconciliation measure but have turned their attention to the debt ceiling and government funding bills.Congress has fewer than two weeks before the current budget expires – on Oct 1 – to fund the government and raise the debt ceiling. Republicans yesterday noted that the Democrats could raise the ceiling on their own through the reconciliation process, with many saying that they would not be offering their support to any funding bill. Democrats continue to push for a bipartisan bill to raise the debt ceiling, pointing to their votes during the Trump administration. If Democrats are forced to tie the debt ceiling and funding bills to budget reconciliation, it could limit how much of the $3.5 trillion bill survives the last minute negotiations between progressives and moderates. More to come over the next 10 days. Staying on the US, there was an important announcement in President Biden’s speech at the UN General Assembly, as he said that he would work with Congress to double US funding to poorer nations to deal with climate change. That comes as UK Prime Minister Johnson (with the UK hosting the COP26 summit in less than 6 weeks’ time) has been lobbying other world leaders to find the $100bn per year that developed economies pledged by 2020 to support developing countries as they reduce their emissions and deal with climate change. In Germany, there are just 4 days to go now until the federal election, and a Forsa poll out yesterday showed a slight narrowing in the race, with the centre-left SPD remaining on 25%, but the CDU/CSU gained a point on last week to 22%, which puts them within the +/- 2.5 point margin of error. That narrowing has been seen in Politico’s Poll of Polls as well, with the race having tightened from a 5-point SPD lead over the CDU/CSU last week to a 3-point one now. Turning to the pandemic, Johnson & Johnson reported that their booster shot given 8 weeks after the first offered 100% protection against severe disease, 94% protection against symptomatic Covid in the US, and 75% against symptomatic Covid globally. Speaking of boosters, Bloomberg reported that the FDA was expected to decide as soon as today on a recommendation for Pfizer’s booster vaccine. That follows an FDA advisory panel rejecting a booster for all adults last Friday, restricting the recommendation to those over-65 and other high-risk categories. Staying with the US and vaccines, President Biden announced that the US was ordering 500mn doses of the Pfizer vaccine to be exported to the rest of the world. On the data front, there were some strong US housing releases for August, with housing starts up by an annualised 1.615m (vs. 1.55m expected), and building permits up by 1.728m (vs. 1.6m expected). Separately, the OECD released their Interim Economic Outlook, which saw them upgrade their inflation expectations for the G20 this year to +3.7% (up +0.2ppts from May) and for 2022 to +3.9% (up +0.5ppts from May). Their global growth forecast saw little change at +5.7% in 2021 (down a tenth) and +4.5% for 2022 (up a tenth). To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Tyler Durden Wed, 09/22/2021 - 08:05.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

5 Stocks To Watch For September 22, 2021

Some of the stocks that may grab investor focus today are: Wall Street expects General Mills, Inc. (NYSE: GIS) to report quarterly earnings at $0.89 per share on revenue of $4.29 billion before the opening bell. General Mills shares fell 0.6% to $57.65 in after-hours trading. read more.....»»

Category: blogSource: benzingaSep 22nd, 2021

5 Stocks To Watch For September 22, 2021

Some of the stocks that may grab investor focus today are: Wall Street expects General Mills, Inc. (NYSE: GIS) to report quarterly earnings at $0.89 per share on revenue of $4.29 billion before the opening bell. General Mills shares fell 0.6% to $57.65 in after-hours trading. FedEx Corporation (NYSE: FDX) reported weaker-than-expected earnings for its first quarter, while sales exceeded estimates. The company also lowered its guidance for FY21. FedEx shares dropped 4.9% ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 22nd, 2021

5 Stocks To Watch For September 21, 2021

Some of the stocks that may grab investor focus today are: Wall Street expects AutoZone, Inc. (NYSE: AZO) to report quarterly earnings at $29.87 per share on revenue of $4.56 billion before the opening bell. AutoZone shares fell 0.6% to $1,585.16 in after-hours trading. General Electric Company (NYSE: GE) and Vietnam’s leisure airline Bamboo Airways are set to sign a $2 billion deal on Tuesday, Reuters reported citing the airline. As part of the deal, the Vietnamese airline ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 21st, 2021

Dow"s Winning Streak Ends as Stocks Take a Step Back

Dow's Winning Streak Ends as Stocks Take a Step Back The Dow’s winning streak came to an end on Thursday, as all of the major indices pulled back in a busy day of earnings reports and economic data. The index jumped more than 1100 points in the previous four days with help from positive vaccine news and the start of earnings season. But today the Dow slipped back by 0.50% (or about 135 points) to 26,734.71. The S&P had the best performance by only declining 0.34% to 3215.57, while the NASDAQ again had the worst with a slump of 0.73% (or about 76 points) to 10,473.83. We received conflicting pieces of data on Thursday. On the one hand, jobless claims of 1.3 million fell just short of expectations, suggesting that the jobs picture is only slowly improving with the number remaining well over 1 million. But on the other hand, retail sales blew past expectations by rising 7.5% in June, which comes after the previous month’s double-digit surge. So consumers can’t wait to spend money… as long as they have jobs of course. The big earnings reports today included Bank of America (BAC, -2.72%) and Morgan Stanley (MS, +2.51%). Both of these banks beat expectations, but BAC will be putting away another $4 billion for loan losses stemming from the coronavirus. Perhaps the biggest problem on Thursday was the lack of positive vaccine news, which the market loves more than solid earnings and data at the moment. Strong Phase 1 results from Moderna (MRNA) was a major reason why stocks moved higher yesterday. Another big story right now is the sudden sluggishness of tech. The FAANGs didn’t do much on Thursday, except for Apple (AAPL) dropping by more than 1%. Unfortunately, the situation might not get much better for tech tomorrow. After the bell, streaming pioneer and “stay-at-home” giant Netflix (NFLX) fell short of earnings expectations and offered a disappointing outlook for third-quarter subscriber growth. Shares of NFLX are down approximately 10% after hours, as of this writing. The Dow and S&P head into Friday’s session higher for the week, but the NASDAQ is lower over the past four days (thanks to that more than 2% slide on Monday). Today's Portfolio Highlights: Surprise Trader: Even though there’s still no movement from Congress on an infrastructure stimulus bill, Dave wants some exposure to this industry. Therefore, he bought Summit Materials (SUM) on Thursday. This construction material company supplies aggregates, cement, ready-mix concrete and asphalt. It has a positive Earnings ESP of 18.68% for the quarter coming after the bell on Tuesday, July 21. The editor added SUM with a 12.5% allocation, while also selling half of SYNNEX (SNX) for an 18% return in just under a month. Read the complete commentary for more on today’s moves. Counterstrike: "The tech weakness seemed to start when after Twitter (TWTR) was hacked. A bunch of big accounts were compromised and tweeted out bitcoin scam tweets. This action shines a spotlight on how tech can be vulnerable sometimes. While that event caused little selling, it didn’t last long. Twitter actually went unchanged on the day and stocks like Tesla (TSLA) and Amazon (AMZN) rallied off their lows, with the later bouncing over $100 points. "Netflix came in after the bell with a big miss on the bottom line. It was trading down over 10% after hours and will undoubtedly add to the tech weakness we have seen this week. "The Netflix miss tonight should set the tone for tomorrow. I would expect some selling in big tech as investors get nervous this quarter might not be cracked up to what it was made out to be. It would be healthy to get a sell off and give us some nice chances to buy at lower prices." -- Jeremy Mullin All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Drop as Stimulus Negotiations Called Off

Stocks Drop as Stimulus Negotiations Called Off New Zacks Feature: ASK ALEXA Now call out a stock name or ticker. Alexa will give you its latest Zacks Rank and price. Also hear daily additions to and deletions from the services you follow. For easy directions on starting Zacks on Alexa, click here >> Stocks took a header late in Tuesday’s session as it appeared a stimulus package wasn’t going to happen before the election.  Basically, President Trump called it off. A day after returning home from the hospital for treatment of covid, he directed Republicans to stop negotiations on a stimulus deal until after the election. The market wasn’t really confident that Speaker Pelosi and Treasury Secretary Mnuchin would suddenly have a breakthrough and reach a deal. But it was hopeful! As long as they were talking, it seemed possible. The good news is that the election is less than a month away, and a stimulus measure will be a major issue for whoever wins. The American people have been hanging on for weeks now since the original aid expired, so let’s hope they can keep treading water a little while longer. Just a few hours before the President’s tweet, Fed Chair Jerome Powell was mentioning the need for more help out of Capitol Hill during virtual comments at the National Association for Business Economics. He said the risk of overdoing a stimulus is smaller than doing too little.  The major indices looked like they might finish in the green again on Tuesday, but the late pullback sent them all lower by well over 1%. The NASDAQ dropped 1.57% (or about 177 points) to 11,154.60. Meanwhile, the S&P dipped 1.4% to 3360.97, while the Dow was off 1.34% (or around 375 points) to 27,772.76. The major indices had a strong beginning to the week on Monday as the President returned to the White House after a precautionary weekend stay at Walter Reed for his covid infection. The NASDAQ jumped more than 2.3% yesterday, while the Dow and S&P each rose over 1.5%.  Today's Portfolio Highlights: Stocks Under $10: This may not seem like a good time to be in the business of selling surplus items for businesses and the government, but Brian thinks that Liquidity Services (LQDT) is turning the corner. This auction site trounced the Zacks Consensus Estimate in the past two quarters, including a surprise of 133% most recently! As a result, earnings estimates moved higher. The editor thinks the market has been too sour on LQDT, leaving the stock poised for an uptrend as pandemic shortages make its services more important moving forward. Read the full write-up for a lot more on this new addition. Surprise Trader: Over the past two years, the October report from Commercial Metals (CMC) led to sharp share increases for this steel company. And it’s about that time again! The next report is scheduled before the bell on Thursday October 15. CMC has beaten for six straight quarters now, including a surprise of approximately 110% last time. The company seems set to continue that streak with an Earnings ESP of 1.54% for the upcoming report. Dave added CMC on Tuesday with a 12.5% allocation, while also selling Ambarella (AMBA) for an 11.9% return in less than six weeks. See the complete commentary for more on today’s moves. TAZR Trader: This portfolio easily had the top mover of the day among all ZU names as Alteryx (AYX) surged 28.2%, which was more than three times better than the next best performer. This data analytics software platform raised its third quarter guidance to between $126 million and $128 million, which was more than analyst expectations. It also appointed a new CEO. Kevin added AYX back on August 7. Counterstrike: With a presidential election and a new earnings season on the horizon, Jeremy decided to raise some cash on Tuesday. He sold all or part of four positions, which included cashing in three double-digit returns! The moves included: ▪ Crocs (CROX) – sold half for a 29% return since addition on Aug 3 ▪ Lam Research (LRCX) – sold all for a 12.3% return since Sep 8 ▪ Zendesk (ZEN) – sold half for a 10.8% return since Aug 31 ▪ Dropbox (DBX) – sold all for slight loss See the full write-up for more on today’s moves. Zacks Short List: This week's adjustment replaced half of the portfolio. The positions that were short-covered on Tuesday were: ▪ China Lodging Group (HTHT) ▪ Sysco (SYY) ▪ Burlington Stores (BURL) ▪ Performance Food Group (PFGC) ▪ The Trade Desk (TTD) The new buys that filled these open spots included: ▪ Alcon (ALC) ▪ Canada Goose (GOOS) ▪ Ecolab (ECL) ▪ AZEK Company (AZEK) ▪ XPO Logistics (XPO) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. Insider Trader: "It was a crazy session as stocks were in the green for most of the day until President Trump tweeted out that he was instructing Mnuchin to end the negotiations with the Democrats over the next aid package until after the election. "All the major indexes immediately dropped on the Tweet and finished in the red for the day. "It could have been much worse, to be honest. But will we continue to see weakness for the rest of this week as the news sinks in?" -- Tracey Ryniec Have a Great Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Advance on "Optimistic" Turn in Stimulus Talks

Stocks Advance on "Optimistic" Turn in Stimulus Talks The news for a pre-election stimulus deal was encouraging on Tuesday… and, therefore, stocks finished higher. That’s all the reason you need for a positive session during a headline-driven market like this one.  The whole thing could be reversed tomorrow, so let’s enjoy it while we can.   Speaker Pelosi and Treasury Secretary Mnuchin are still talking up a storm. The former actually used the word “optimistic” in reference to the negotiations and downplayed the 48-hour deadline she set up that expired today. The market probably knows that we shouldn’t be too hopeful, but it just can’t help itself. On Tuesday, stocks recovered some of Monday’s losses. The S&P rose 0.47% to 3443.12, while the Dow was up 0.40% (or around 113 points) to 28,308.79. The NASDAQ finally broke its five-day losing streak by advancing 0.33% (or about 37 points) to 11,516.49. Stocks are coming back from a rough Monday session that saw each of the major indices plunge by more than 1% due to the absence of a stimulus deal. The big earnings news on Tuesday actually came after the market closed when the first FAANG went to the plate. Unfortunately, it wasn’t that good. Streaming pioneer Netflix (NFLX) beat revenue in the third quarter, but earnings fell short. Perhaps more importantly, though, the paid subscriber additions were “only” 2.2 million. Expectations were for well over 3 million. As of this writing, shares of NFLX are down more than 6% after hours. In other earnings news, shares of Snap (SNAP) are up over 22% after hours, as of this writing. Yeah, that’s not a mistake… 22%! The mobile camera application posted a surprise profit for its third quarter and also beat on revenue. Daily active users climbed 18% to 249 million, which also was ahead of expectations. Some of tomorrow’s reports include Tesla (TSLA), Abbott Labs (ABT), CSX Corp. (CSX), Lam Research (LRCX) and Biogen (BIIB) just to name a few. Today's Portfolio Highlights: Stocks Under $10: After managing some risk yesterday by selling three names, Brian was back at it on Tuesday with a couple new buys. He added Costamare (CMRE) and IVERIC bio (ISEE), which are both Zacks Rank #2s (Buys). CMRE is a containership owner that charters its vessels to liner companies. It has beaten the Zacks Consensus Estimate in each of the last four quarters and has an average surprise of 15.8% over that time. ISEE is a biotech with a drug, Zimura, that focuses on retinal issues. It recently published Phase 3 results. Earnings estimates are “not pretty”, but that’s to be expected with a biotech. As their Zacks Ranks attest, earnings estimates are moving higher for both companies. The editor sees good things for both of these names moving forward. Read the full write-up for more specifics on these buys.   Surprise Trader: The RV has become a preferred way for folks to vacation during this pandemic, since it allows them to travel yet still practice social distancing, That’s why Dave added Winnebago Industries (WGO) on Tuesday with a 12.5% allocation. This Zacks Rank #2 (Buy) has a positive Earnings ESP of 14.44% for the report coming before the bell TOMORROW, which makes this one of the editor’s “quick turnaround” ideas. Last time, WGO beat by more than 36%. Meanwhile, Dave decided to take most of his Sleep Number (SNBR) position off the table. The stock has soared since its report less than a week ago, and he wants to bank a lion’s share of that now. Therefore, most of SNBR was sold today for a 17.8% return in a little over two weeks, but a 3.3% allocation will remain for now to let the profits run a little longer. Read the full write-up for more. Home Run Investor: The best-performing stock among all ZU names on Tuesday was Canadian Solar (CSIQ), which jumped 11.8%. Yesterday, the solar power company announced a deal to provide an energy storage system to the Mustang solar plant in California. By the way, this portfolio also had the second-best performer today as Apogee Enterprises (APOG) rose 5.5%. Zacks Short Sell List: The portfolio made three changes in this week's adjustment. The stocks that were short-covered include: • TAL Education (TAL) • Alcon (ALC) • Canada Goose (GOOS) The new buys that replaced these names were: • ConocoPhillips (COP) • StoneCo (STNE) • Twitter (TWTR) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021