Daily comment Jan 22

Analytics, 22 January 2020

Companies:

Johnson & Johnson (-1.6%): The Co missed on 4Q revenue estimate after disappointing sales of blockbuster drags Stelara. 4Q rev. +1.8% y/y to $20.75bn vs est. $21.5bn. Pharmaceutical rev.: +3.5% r.r to $10.55bn; Medical Devices -0.5% y/y to $6.6bn. Adj. EPS -4.6% y/y to $1.88 vs est. $1.87. https://bit.ly/2GcZc6n
Netflix (-3.5%): The Co. reported soft subscriber growth in the US amid increasing competition from Apple, Disney. The co. disclosed 550k North America streaming additions vs est. 611k and guidance for 589k. The US net adds were 420k. https://bit.ly/2tJHPYa
IBM (+3.7%): The Co. reported 4Q revenue and profit beat. 4Q Rev. +0.1% y/y to $21.77bn vs est. $21.64bn. Total cloud revenue +21% y/y to $6.8bn. Adj. EPS -3% y/y to $4.71 vs est. $4.69. Sees 1Q EPS of at least $13.35 vs est. $13.29. https://ibm.co/2Gan8Y6
Apple (+0.5%) reportedly plans to launch a new low-cost iPhone as soon as February. https://bloom.bg/30H2SqD
Tesla (+3.4%): The company’ market-cap crossed the threshold of $100bn after-hours yesterday, making Tesla the second most valuable carmaker around the globe. https://reut.rs/37iAGN5

Macro:

Donald Trump said at Davos he is expecting to reach a trade deal with EU before presidential election this year. https://on.ft.com/30IcfWW
President Trump is planning to meet with WTO chief next week in Washington. https://reut.rs/38vs2Lm

Commodities:

WTI (-1.6%): US cruse stockpiles probably increased by 1mn bls last week: Bloomberg survey. https://bloom.bg/2Rit2wP
Goldman Sachs expects oil prices to drop ~$3 per barrel as the potential spread of deadly virus could reduce oil demand by 260k bpd in 2020. https://bloom.bg/30Kjb5P

Coming up:

This week (1/21-1/24): The World Economic Forum in Davos
On Thu (1/23): ECB monetary policy decision
Companies to report earnings this week: Procter & Gamble, Intel, American Express and Hyundai.

Company / Analytics