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Pre-market futures are off their early-morning lows, but still trading lower than Monday’s close. We’re already riding the worst two-session streak for tech stocks (Nasdaq and S&P) since last October. Currently, the blue-chip Dow is -89 points, -0.18%, the S&P 500 -23, -0.32%, the Nasdaq -166, -0.57%, and the small-cap Russell 2000 -13 points, -0.49%.
Spot oil prices continue to tick higher this morning — $108 per barrel (/bbl) on WTI and $110/bbl on Brent crude — as the world awaits the next step the the Iran War, which is entering its 12th week. This is already 2x or 3x longer than initially suggested. Meanwhile, bond yields are pushing higher, as well: +4.617% on the 10-year and +4.080% on the 2-year.
Data on Housing Formation Gathers Quietly
Without much fanfare, at least compared to a normal “Jobs Week” or “Mag 7” earnings week, Housing data is making it way into the economic discourse this week. Yesterday, we saw the latest NAHB Homebuilders Confidence, for May, coming in 3 points higher month over month to 37, but still well off the 50-threshold. This was the 25th straight month below that level which determines growth. Nearly 2/3rd of homebuilders used sales incentives for the month, and 32% lowered asking prices.
After today’s open, Pending Home Sales for April get released, expected +1.0% from the prior month’s +1.5%. This would be the third month in a row of positive home sales growth, after three of the previous five months of negative headline numbers. Year over year, we’re at four-straight down-months, lower in six of the past seven.
Thursday morning, we’ll see new Housing Starts and Building Permits, also for April. New starts are expected to fall to 1.42 million seasonally adjusted, annualized units from 1.50 million in March, while new permits — something of a proxy for future starts — look to tick up slightly to 1.39 million units from 1.37 million the prior month.
Earnings Reports at a Glance: HD & More
Speaking of housing, Home DepotHD reported Q1 results this morning. It beat on the bottom line by 3 cents per share to $3.43 (though off the $3.56 per share pace from the year-ago quarter), while revenues of $41.77 billion came out slightly of estimates by +0.67%. This makes three quarters of the last four higher on revenues. The “core shopper remains resilient,” is the message from the company’s top brass; full-year guidance was affirmed, but shares are -$0.70 on the news. For more on HD’s earnings, click here.
After today’s close, we keep the housing narrative open, albeit on the luxury side: Toll BrothersTOL reports fiscal Q2 numbers this afternoon, expecting -26.3% earnings growth year over year, on -12% in revenues. Fast-casual restauranteur CAVA GroupCAVA is expected to come in -22.7% on earnings year over year, but +26.4% on revenues. NVIDIA NVDA reports after the close on Wednesday.
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CMS Energy’s robust investment in infrastructure upgrades and renewable project will boost its earnings growth.CMS Energy has also been reducing its coal-generating units to promote clean energy
AMETEK’s record orders, an expanding backlog, margin discipline, innovation and targeted acquisitions support durable growth while consistently funding shareholder returns through cycles.
Automation-led product design, expanding global capability, disciplined sales execution and capital returns support PAYC’s sticky client relationships and durable longer-term growth.
The proximity of Murphy USA’s fuel stations to Walmart supercenters helps the company to leverage the strong and consistent traffic that these stores attract.
Solid contributions from residential customers, returns within one year of investment, customer additions and positive regulatory outcomes will continue to boost the company’s performance.
With its innovative modular approach and major Gulf Coast projects, Venture Global is well-positioned for strong growth in LNG revenues and long-term earnings.
Improving demand, rising lead times and a mix shift toward higher-margin services support Avnet’s margin recovery, while Farnell rebounds, and dividends continue.
Five Below’s strategic refocus on its core demographic pre-teens and teens form a strong foundation for growth. Its ambitious store expansion strategy stands out as a significant growth driver.
Labor and supply-chain issues are likely to hurt Apogee’s margins. Elevated interest and healthcare costs are also likley to impact the company's performance in the ongoing quarters.
Tariffs and promotions limit margin recovery, digital remains unsettled, and Greater China, sportswear and Converse resets extend NIKE’s revenue volatility in the near term.
Regulatory outcomes, customer concentration and project execution, and large financing needs could materially limit returns if growth or recovery lags.
Large operating losses and higher investment spending, complex deals, roadmap deadlines, and acquisition execution can keep volatility elevated near-term valuation.
Concentrated personal-loan exposure, below-peer liquidity metrics, and no dividend leave returns dependent on execution and market sentiment cycles credit shocks.
High labor costs, Boeing and Airbus-related delivery delays, apart from share price volatility and high fuel costs represent the main headwinds at UAL.
Tariff swings and input inflation pressure margins, while cautious U.S. retail demand and potentially higher freight costs create earnings volatility in the near term.
Lower yield outlook, softer close-in demand, execution gaps, fuel volatility, heavy capex and high leverage reduce near-term visibility for shareholders.
Tyson Foods leverages a diversified protein portfolio, strong chicken performance and global expansion to deliver resilient growth and long-term shareholder value.
Broadcom is a leading player in the semiconductor market based on its expanding product portfolio, multiple target markets, accretive acquisitions and strong cash flow.
Central Garden & Pet’s Cost and Simplicity agenda remains a multi-year driver of operating discipline across sourcing, manufacturing, distribution, portfolio optimization and overhead.
Align Technology’s robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock.
AbbVie’s Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years.
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