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DR Horton plummets after earnings report
1 hour 6 minutes ago
Shares of DR Horton (DHI), one of the largest U.S. home builders, rose on Tuesday after the company’s quarterly earnings report fell short of Wall Street expectations as rising costs and a weak housing market weighed on profits. It fell.
Sales increased 6% year-on-year to $7.7 billion. Net orders rose 35% to 18,069 orders, but fell short of analysts’ expectations.
Meanwhile, DR Horton’s cost of goods sold increased 8% year over year, and net income decreased 1% to $947.4 million.
Earlier in the quarter, with mortgage rates rising toward a nearly 25-year high of about 8%, the company is offering discounts and other offers to potential buyers to make homes more affordable. now offers incentives. As a result, the company’s home sales gross profit margin decreased by 100 basis points to 22.9%.
“We expect our incentive levels to remain high in the short term,” Chief Financial Officer Bill Wheat said on a post-earnings conference call with analysts.
DR Horton fell more than 10% on Tuesday, its biggest single-day decline since March 2020. Still, the stock is up more than 48% in the past 12 months.
Increased aviation demand and military spending accelerates RTX
1 hour 58 minutes ago
RTX (RTX) stock rose nearly 6% in intraday trading Tuesday after the aerospace and defense contractor reported better-than-expected results supported by increased air travel and military spending.
The company, formerly known as Raytheon, reported fourth-quarter earnings per share (EPS) of $1.29 on revenue of $19.9 billion, a 10% year-over-year increase. Both exceeded expectations.
Collins Aerospace segment sales increased 14% to $7.12 billion. Commercial settlements and a surge in demand for aftermarket products as airlines increased their fleets during the travel boom contributed.
Revenue at Raytheon, RTX’s defense division, rose 3% to $6.89 billion. This group manufactures his AMRAAM rocket and Patriot missile system.
As of Tuesday afternoon, RTX stock was up 5.6% to $89.82 per share. Despite Tuesday’s gains, RTX stock is down 6.5% year-over-year.
-Bill McCall
TradingView
Procter & Gamble’s fourth-quarter sales rose due to inflation, but Gillette shaved off profits
2 hours 50 minutes ago
Procter & Gamble Co.’s (PG) sales rose on higher prices, but a $1.3 billion impairment charge by Gillette hurt profit for the three months through December.
The maker of Tide and Tampax reported net income of $3.46 billion, or $1.4 per diluted share, below analyst expectations and down about 12% from a year earlier. Net sales rose 3% to $21.4 billion due to higher prices, but fell short of the Visible Alpha analyst consensus of $21.6 billion.
In addition, P&G was forced to lower its fiscal year 2024 earnings forecast due to charges incurred due to a “reduction in the estimated fair value of the Gillette brand.” The company currently expects full-year profit to be in the range of a 1% decline. His 2023 EPS is $5.90, a significant increase in in-line earnings compared to the 6-9% growth rate he had previously estimated.
P&G shares rose more than 4% in early trading.
– Mrinalini Krishna
There’s a lot of optimism on Wall Street, but will it last?
3 hours 32 minutes ago
The S&P 500 index, which closed at its highest level in more than two years last Friday, has increased by 14% in the past three months, largely due to optimism from the Federal Reserve that it will cut interest rates later this year. It rose more than that.
However, that is not the only factor pushing up stock prices. Deutsche Bank macro strategist Henry Allen detailed four reasons for Wall Street’s optimism in a research note Tuesday.
- The fiscal situation is more relaxed than in recent years. Spreads on investment-grade bonds are the narrowest they’ve been in two years, and real yields are at a six-month low. Lower borrowing costs should help support the real economy.
- Economic indicators have proven surprisingly resilient. While the labor market remains strong and consumer spending has held up, inflation expectations have fallen to their lowest level since 2020.
- Central bankers are openly discussing interest rate cuts. After some recent calls for caution, it is a welcome development for the market that officials are beginning to acknowledge that cuts are on the horizon.
- Artificial intelligence truly has the potential to drive economic growth at a pace not seen in more than a decade.
But he also explains why optimism today is “hard to sustain.”
- Easing financial conditions could cause inflation to accelerate again, prompting the Fed to take a tougher stance.
- “Currently, inflation swaps are already pricing in US CPI at 2% from mid-2024, with the federal funds futures market expecting a decline of more than 130 bps by the December meeting,” Allen wrote. There is. Surprisingly, expectations are so high that there is little room for upside.
- Wall Street’s optimism is making it harder for central bankers to whip up euphoria and shift policy without risking renewed inflationary pressures.
- Last year’s market rally was the smallest since the dot-com bubble. If sentiment towards Magnificent 7 changes, the market could feel the pain.
Chinese stocks rise as Chinese government considers extending aid
4 hours 34 minutes ago
Chinese companies’ American Depositary Receipts (ADRs) traded on U.S. exchanges fell on Tuesday morning, following reports that the government may create a stabilization fund to prop up the country’s struggling stock market. Rose.
The Chinese government is reportedly considering raising 2 trillion yuan ($278 billion) from overseas accounts of state-owned enterprises to buy Hong Kong stocks. bloomberg newsquoted an undisclosed source.
Chinese authorities are trying to halt a decline in Chinese stocks, which slumped last year due to slowing economic growth, a shrinking population and a weak real estate sector. Yesterday, the Shanghai Composite Index fell to its lowest level in nearly four years, and Hong Kong’s Hang Seng Index is trading near its lowest level in 15 years.
Shares in e-commerce giant Alibaba (BABA) soared more than 7% early Tuesday, as did rivals JD (JD) and search provider Baidu (BIDU). Electric car maker NIO (NIO) soared more than 9%.
Verizon posts loss on one-time charges in fourth quarter despite higher sales
5 hours 29 minutes ago
Verizon (VZ)’s fourth-quarter profit fell into the red due to a $7.8 billion loss on special items, despite posting better-than-expected revenue.
Verizon’s revenue by the numbers
- Net income: ($2.57 billion versus $4.56 billion expected, according to analyst estimates compiled by Visible Alpha)
- Adjusted earnings per share: $1.19 vs. $1.08 expected
- Revenue: $35.13 billion vs. $34.6 billion expected.
The company reported a loss of $2.57 billion, or 64 cents per diluted share, for the quarter.
The one-time loss came as Verizon disclosed a $5.8 billion goodwill impairment charge for its business reporting unit and a mark-to-market value of approximately $992 million for its pension and employee benefit programs, among other things.
Excluding these special items, the company’s adjusted earnings per share would have been $1.19.
The company’s shares rose more than 5% in early trading.
– Mrinalini Krishna
United Airlines stock soars after strong fourth-quarter results—key chart levels to watch
6 hours 7 minutes ago
United Airlines (UAL) stock rose nearly 7% in premarket trading Tuesday morning after the full-service airline beat Wall Street’s highest profit and bottom line expectations.
The Chicago-based airline posted fourth-quarter adjusted earnings of $2.00 per share, comfortably beating analysts’ expectations of $1.69 per share. Sales for the period were $13.63 billion, exceeding expectations of $13.54 billion. Furthermore, sales improved by nearly 10% compared to the same period last year, boosted by strong travel demand during the holiday season.
“Despite unpredictable headwinds, we achieved our ambitious EPS targets that most people thought possible,” CEO Scott Kirby said in a statement accompanying the results. “We have set a new business record for our customers.”
Source: TradingView.com.
United stock rose toward its 200-day moving average in early January, but stalled late last week, closing below its 50-day moving average (MA). If the price rises above the 50MA again today, keep an eye on the $44.50 level. There, we may encounter selling pressure near the horizon dating back to mid-March of last year. On the downside, keep an eye on the 2023 low near $34 as a potential support area if the stock declines in the coming weeks.
-Timothy Smith
Stocks that move the most before the market
6 hours 29 minutes ago
Profit:
- United Airlines Holdings (UAL): The company’s stock rose more than 6% after it beat expectations for fourth-quarter profit and revenue, which is the biggest increase in Boeing’s earnings of up to 85 cents per share this quarter. It covered up the warning that it could suffer losses. Nine 737 Max aircraft remain grounded pending an FAA safety investigation.
- Verizon Communications Inc. (VZ): Shares of the telecommunications giant rose about 4% after fourth-quarter revenue and bottom line beat Wall Street expectations on strong growth in its wireless services business.
- Netflix Inc. (NFLX): Shares rose about 2% after Netflix acquired exclusive rights to WWE Raw starting in 2025 as part of the streaming giant’s push into sports and event broadcasting. Shares of WWE owner TKO Group (TKO) rose more than 20%.
loss:
- 3M Co. (MMM): Shares of the industrial products maker fell more than 7% after its 2024 earnings outlook fell short of analysts’ expectations.
- DR Horton Inc. (DHI): The home builder’s stock fell more than 6% as profits fell below Wall Street expectations as labor costs and a weak housing market weighed on margins.
- General Electric Co. (GE): Shares of the conglomerate fell about 2% after the company provided a weaker-than-expected full-year outlook, overshadowing fourth-quarter profit growth.
Stock futures are mixed amid numerous earnings reports
7 hours 4 minutes ago
Futures contracts tied to the Dow Jones Industrial Average fell 0.1% in premarket trading Tuesday.
S&P 500 futures rose 0.1%.
Nasdaq 100 futures rose 0.2%.
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