Analytics, 31 January 2020
Daily comment Jan 31
- Wall St opens lower amid economic growth concerns caused by fast-spreading virus
- It’s Brexit day
- AMZN +8.8% on stellar 4Q results
- IBM board elects new CEO
- WTI -0.6%
Companies:
- Amazon (+8.8%): The e-commerce giant easily topped 4Q revenue and EPS estimate. Holiday season sales +20.8% y/y to $87.4bn vs est. $86.09bn and EPS of $6.47 vs est. $4.03. AWS rev. +34% y/y to 9.95bn. Sees 1Q net sales of $69-73bn vs est. $71.63bn and $3-4.2bn in operating income vs est. $4.04bn. https://bit.ly/2UapQVP
- IBM (+4.1%): IBM CEO Ginni Rometty will step down in April. Arvind Krishna, head of IBM’s cloud computing business will take her place then. https://ibm.co/38Zrm1h
- Visa (-3.1%): The Co’ reported in-line 1Q profit and revenue. 1Q net revenue +10% y/y to $6.05bn vs est. $6.08bn. Adj. EPS was $1.46 vs est. $1.47. V reaffirmed 2Q guidance. The board authorized a new $9.5bn share repurchase program. https://bit.ly/2GCXE5U
- Altria (+1.3%) reported $4.1bn impairment charge related to its investment in Juul due to legal cases against Juul. https://bwnews.pr/36FifRG
Macro:
- WHO declared Coronavirus as a Global Health Emergency. The number of cases is now approaching 10,000 with 213 people dead. https://on.wsj.com/2S4p5Lq
- UK is finally set to leave EU in the midnight, Brussel time. London and Brussel are planning to reach a trade deal by the end of the year. https://bit.ly/2vDX1a5
- Eurozone 4Q GDP: +0.1% vs est. +0.2% dragged down by French and Italy economies. https://on.ft.com/38UXPWj
Commodities:
- WTI (-0.6%): Futures fluctuated as WHO issues global emergency, Saudi Arabia pushes for OPEC+ meeting. https://reut.rs/2uVanOD