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Dow flirts with closing price above 38,000
29 minutes ago
The Dow Jones Industrial Average rose more than 200 points Monday morning, topping 38,000 for the first time. The index fell at midday and was trading about 20 points short of the milestone with less than an hour left.
The S&P 500 was also trading at an all-time high on Monday, after hitting a record high in more than two years on Friday.
Of the indexes still recovering from post-pandemic highs, the one furthest from that level is the small-cap Russell 2000, trading around 1,970 as of Monday. It would need to rise nearly 25% to break above the November 2021 high of 2,458.
Small-cap stocks have significantly underperformed large-cap stocks over the past year, with the Russell 2000 gaining just 4.4% over the past 12 months. However, the stock ended the year on a strong note, up nearly 20% from its late October lows, and is trading at a historically low valuation.
Goldman Sachs analysts said in a research note Monday that this could set the stage for a 15% rise in the Russell 2000 index next year.
Agricultural giant ADM’s stock price plummets due to financial audit, forecast lowered
1 hour 10 minutes ago
Agricultural products giant Archer Daniels Midland Co. (ADM) lowers its outlook for fiscal year 2023, puts its chief executive on leave after announcing an investigation into accounting practices, sending shares up more than 20% in intraday trading Monday It fell. .
The Chicago-based grain trading company announced Sunday that it has placed Chief Financial Officer Vikram Luthor on administrative leave as it investigates the accounting practices and procedures of ADM’s nutrition division. The investigation was prompted by a voluntary document request from the U.S. Securities and Exchange Commission (SEC), and ADM said it is cooperating with the SEC.
ADM also updated its 2023 outlook, expecting adjusted earnings per share (EPS) of $6.90, which is higher than its October forecast of “more than $7 per share.” He said it would be lower than that. The company is also postponing its fourth quarter earnings report, which was scheduled for this week.
-Terry Lane
Netflix on track to accelerate fourth-quarter revenue and subscriber growth
1 hour 53 minutes ago
Netflix Inc. (NFLX) is expected to post its highest year-over-year revenue growth in two years when the streaming giant releases fourth-quarter 2023 results as interest in its low-cost advertising increases. – Plan support and continued crackdown on password sharing.
Analysts expect Netflix’s net income to be $983.9 million, up sharply from just over $55 million a year earlier, and earnings per share in the final quarter of 2022 to be between $0.12 and $2.25. I am. Sales are expected to reach a record high of $8.7 billion. 11% increase compared to the previous year.
Netflix lost net subscribers for the first time in 2022 as viewership surged during the pandemic. Since then, the company has recorded uneven net subscriber growth as it aims to return to growth.
However, the company’s $6.99 ad-supported plan announced at the end of 2022 accelerated subscriber growth. The company announced earlier this month that the subscription tier had 23 million active users, up from 15 million in November.
-Nathan Leaf
SolarEdge lays off 16% of employees to cut costs, causing solar inventory to soar
2 hours 33 minutes ago
Shares of SolarEdge Technologies (SEDG) rose more than 3% in intraday trading on Monday after the solar equipment maker announced layoffs to cut costs in response to weak demand. Other solar stocks also rose, including Sunrun (RUN), Enphase Energy (ENPH), and First Solar (FSLR).
The company announced it would lay off 900 people, or about 16% of its workforce, with about 500 of those workers at various manufacturing sites.
Chief Executive Officer Zvi Rand said the job cuts and other cost-cutting measures were necessary for SolarEdge to “align our cost structure with rapidly changing market dynamics.”
In November, SolarEdge reported a 27% quarter-over-quarter decline in third-quarter sales, which Rand said was due to “low market conditions, particularly high inventory levels of our products in European distribution channels. “It reflects what has become,” he said.
The overall solar power industry has been hurt by soaring home prices and mortgage rates, making solar panels less attractive. Additionally, lower compensation that California homeowners receive for sending power back to the grid has reduced demand in the state, the nation’s largest solar power market.
-Bill McCall
Earnings season gets off to a decent start
3 hours 16 minutes ago
As of Monday morning, 52 companies, representing 13% of the S&P 500 index’s total returns, had announced earnings.
Analysts at Bank of America Securities said 56% of reporting companies beat earnings per share estimates and 60% beat revenue estimates, with this quarter’s performance in line with the index’s historical average (earnings). 67% and 64% of sales). Business results have also been significantly higher than in previous quarters, with 75% of reporting companies beating profits and 61% beating revenue expectations as of October last year.
And with the S&P 500 index trading at record highs, even companies that beat expectations haven’t benefited much. So far this season, above-earnings gains have averaged just 20 basis points, while below-earnings have caused an average decline of 500 basis points.
Companies reporting earnings this week include Verizon (VZ), Procter & Gamble (PG), and Tesla (TSLA). The latter expects fourth-quarter revenue to improve from the previous quarter but still be below the same period last year due to significant price cuts.
Verizon, meanwhile, is likely to announce that its profits fell by more than a third, not including a $5.8 billion writedown on its business connectivity unit announced last week.
Procter & Gamble’s net income may decline as it books a portion of the $2.5 billion restructuring and impairment charges it announced in December.
Grayscale Bitcoin ETF total outflow of $2 billion
4 hours 14 minutes ago
Grayscale’s Bitcoin Trust ETF (GBTC) has seen more than $2 billion in outflows in the week and a half since its long-awaited conversion to an exchange-traded fund (ETF).
Several spot Bitcoin ETFs debuted on January 11th after the Securities and Exchange Commission approved 11 funds, a big win for crypto enthusiasts.
Grayscales remains the largest of these funds, with more than $23 billion under management. But the fund, founded as a trust in 2013, is a decade ahead of competitors like BlackRock and Fidelity, which have seen steady inflows into ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) surpassed $1 billion in total assets last week, reaching that milestone in just five days of trading.
Since the ETF was launched about a week ago, the price of Bitcoin has fallen from just over $47,000 to just over $40,000 on Monday morning.
Macy’s profits from rejecting takeover offer
5 hours 10 minutes ago
Macy’s (M) stock rose in early trading Monday after the department store rejected an unsolicited $5.8 billion takeover offer.
The company said in a statement on Sunday that it received an acquisition offer of $21 per share on December 1, 2023, from real estate investment firm Arkhouse Management and asset management firm Brigade Capital Management.
“After careful consideration and efforts to gather additional information from Arkhouse and Brigade, the Board of Directors believes that Arkhouse and Brigade’s proposal is not viable and does not provide compelling value to Macy’s stockholders. “We have determined that there is no need to do so,” said CEO Jeff Gennette.
Specifically, the board determined that Arkhouse & Brigade’s proposal, which required both companies to pay 25% of the purchase price in cash, relied too heavily on financing. In a letter to Arkhouse and Brigade, the Macy’s board said, “The overall leverage you propose is well above what is achievable in today’s market and sustainable for companies in our industry. ” he said.
Macy’s stock price soared to nearly $21 in mid-December after news of the takeover bid. But by last Thursday, when the company announced layoffs affecting more than 2,300 employees as part of a multiyear restructuring triggered by COVID-19, the stock had traded at $18. It had fallen to below.
Shares rose more than 4% to $18.36 early Monday.
Stocks that move the most before the market
6 hours 17 minutes ago
Profit:
- Spirit Airlines (SAVE): The low-cost carrier’s stock rose 3% after JetBlue appealed a court decision blocking its $3.8 billion merger last week.
- Celsius Holdings (CELH): The energy drink maker’s stock rose 3% after announcing expansion plans into Canada, the United Kingdom, and Ireland.
- Macy’s (M): Macy’s shares rose more than 1% after the company rejected a $5.8 billion takeover offer from real estate investor Arkhouse Management and hedge fund Brigade Capital.
loss:
- Archer Daniels Midland Co. (ADM): Shares of the agricultural products trading company fell more than 16% after the company put its chief financial officer on leave and cut its full-year earnings outlook pending an investigation into its accounting practices.
- Gilead Sciences, Inc. (GILD): The company’s stock fell 7% after the company announced that its drug Trodelvy did not meet its objectives in a Phase 3 trial to treat non-small cell lung cancer.
- Chinese stocks: U.S.-listed shares of Chinese tech companies fell amid concerns about the growth prospects of the world’s second-largest economy amid prolonged deflation and a weak real estate sector. E-commerce giants Alibaba (BABA) and PDD Holdings (PDD) both fell nearly 3%.
Chart to watch: Texas Instruments stock benefits from chip sales expectations
6 hours 44 minutes ago
Shares of analog semiconductor maker Texas Instruments (TXN) fell 4% on Friday after UBS upgraded the Dallas-based company’s stock from “neutral” to “buy” on expectations for semiconductor sales growth. Rose.
Analyst Timothy Arcuri said the semiconductor industry as a whole benefited from increased lead times (the amount of time it takes for a company to fulfill an order) this year while prices remain high, and the company has improved relative to its competitors. He said he was in a favorable position.
Source: TradingView.com.
Texas Instruments stock fell below its trading range in late September, but has since made a V-shaped recovery that began in early November. In Friday trading, the stock broke above the above-average volume flag. This is a chart pattern that indicates a continuation of the current uptrend.
If the stock continues to rise, watch how the price reacts to the $185 area. This area is likely to face resistance from the upper trendline of the previous trading range.
-Timothy Smith
Stock futures rise as Friday’s rally is expected to be extended
7 hours 17 minutes ago
Futures contracts tied to the Dow Jones Industrial Average rose 0.2% in early trading Monday.
S&P 500 futures rose nearly 0.4%.
Nasdaq 100 futures rose nearly 0.7% about an hour before the market opened.
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