Analytics, 24 January 2020
Daily comment Jan 24
- Wall St opens higher amid upbeat earnings
- INTC +8% on data centers growth
- AXP +0.6% on 4Q profit beat
- AVGO signed a $15bn deal with AAPL
- Euro-area growth remains “muted”, economic data shows
- WTI -1.7%
Companies:
- Intel (+8%): The Co. reported 4Q beats after-hours yesterday. 4Q rev. +8% y/y to $20.21bn vs est. $19.23bn driven by client computing and data center rev. growth. Gross margin was 60.1% vs est. 58.4%. Adj. EPS +19% y/y to $1.52 vs est. $1.25. Sees 1Q revenue of $19bn, $1.30 EPS. https://bit.ly/2GgC3Ab
- American Express (+0.6%): The Co. reported 4Q profit above estimate, upbeat guidance. 4Q rev. +9% y/y to $11.37bn (in-line with estimate), driven by growth in fees, spend and lend revenues. Adj. EPS +17% y/y to $2.03 vs est. $2.01. Sees FY20 EPS of $8.85-$9.25 vs est. $8.99. https://bwnews.pr/2utH45P
- Broadcom (+2.4%) signed a $15bn multiyear agreement with Apple (+0.7%) to supply wireless components. https://reut.rs/2RPx7aP
- Meanwhile, Wedbush analyst Dan Ives raised his Apple PT from $350 to $400, citing underestimated “magnitude of the 5G upgrade cycle.” https://bit.ly/3aGXrwg
Macro:
- China widened a lockdown in Hubei province as the amount of deaths climbed to 26 with 830 confirmed cases. https://on.wsj.com/2GkyzwE
- Euro-zone IHS Markit’s composite PMI Index stayed at 50.9 in January vs est. 51.2. https://bloom.bg/2RohS9K
Commodities:
- WTI (-1.7%): US crude stockpiles unexpectedly dropped by 405k bls last week vs est. increase of 1.75mn bls: EIA. https://bit.ly/2RHklLq
- Brazil plans to expand its oil supply footprint without joining OPEC. https://bloom.bg/38MJ2NB