Daily comment Jan 29
- Wall St opens higher supported by earnings
- AAPL +2.1% on best-ever quarter results
- BA+2.6%, sees $18bn cost of 737 Max grounding
- MCD +1.7% on 4Q revenue growth
- SBUX -1.4% on FY profit warning
- JPM to cut hundreds of jobs
- WTI +0.3%
Companies:
- Apple (+2.1%) reported 1Q profit well above estimate. Rev. +9% y/y to $91.8bn vs est. $88.5bn driven by strong iPhone and wearables sales. iPhone rev: $55.96bn vs est. $51.6bn. Adj. EPS: $4.99 vs est. $4.55. Sees 2Q rev of $63bn-$67bn vs est. $62.45bn. AAPL execs also cautious of Coronavirus impact on demand. https://apple.co/2U6FEIY
- Boeing (+2.6%): The Co. reported the first FY loss since 1997. 4Q rev. -37% y/y to $17.91bnvs est. $21.76bn. 4Q Adj. EPS was -$2.33 vs est. -$1.83, due to ~$18.6bn cost of grounding 737 Max. https://bit.ly/38PAS6Z
- McDonalds (+1.7%): The restaurant chain reported 4Q revenue and EPS in-line with estimates, comps came better than expected. 4Q Rev. +3.7% y/y to $5.3bn (in-line). Global same-store sales were 5.9% vs est. 5.2%.Adj. EPS was $1.97 vs est. $1.96. https://prn.to/2Rz4QWW
- Starbucks (-1.4%): The Co. warned the closure of ~2k shops in China could hit FY results, despite reporting 1Q results above estimate. https://bwnews.pr/38M6qKW
- JPMorgan (+0.5%): The bank is reportedly planning to cut hundreds of jobs in consumer department. https://bloom.bg/2tYYYxj
Macro:
- Fed will announce interest rate decision today at 2:00 PM (EST). Analysts expect Fed to keep the rates unchanged. https://bloom.bg/2U9QrCj
- Meanwhile, the number of confirmed Coronavirus cases jumped to over 6,000. WHO will hold a press-conference on Coronavirus situation later today. https://bloom.bg/2GAen9S
Commodities:
- WTI (+0.3%): Yemen’s Houthi rebels said they attacked an oil facility in Saudi Arabia. https://bloom.bg/2uLqazr
- US government will extend waivers on Iran nuclear program for another 60 days. https://bloom.bg/2vrIMVC
Coming up:
- On Thu (1/30): US 4Q GDP is due
- Companies to report earnings today: Facebook, Tesla.