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Markets Close April Lower Ahead of Fed, Q1 Earnings
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Tuesday, April 30th, 2024
Markets closed at their lowest levels in more than a week today. This is thanks to a session which ends the month of April profoundly down: the Dow lost -570 points, -1.49%, the Nasdaq -325 points or -2%, the S&P 500 fell -1.57% and the small-cap Russell 2000 was down -1.76%. All four indices hit session lows at the closing bell. Anticipating more hawkishness from the Fed tomorrow looks to be part of this equation, as stronger-than-expected economic numbers continue to push the rate-cut scenario farther out.
This morning, we saw Case-Shiller home price figures grow +7.3% for February. This is the highest print since October of last year, and month-over-month growth of +0.9% is the strongest in eight months. Normally, this would be treated as good news by the stock market — with 19 of 20 cities showing home price growth for the month (only Tampa was lower), led by San Diego at +11.4%, followed by a tie with Chicago and Detroit at +8.9% — but not when we’re looking for inflation to be on the wane. Then again, this is data from a couple months in arrears, so this ultimately amounts to “old” news.
Amazon (AMZN - Free Report) shares jumped +6% moments after Q1 earnings were released after today’s close. Earnings of 98 cents per share on quarterly revenues of $143.3 billion easily took out projections for 82 cents per share and $142.5 billion, respectively. North American sales were up +12%, with International +10%, and AWS revenues higher than expected to $25 billion, +17%. Revenue guidance for next quarter was soft, however, on projected foreign exchange levels. Share are now trading +3% in the late session.
Starbucks (SBUX - Free Report) missed earnings estimates for the second straight month this afternoon. Earnings of 68 cents per share came up short of the 79 cents anticipated, on revenues of $8.56 billion which were light of the expected $9.14 billion for the coffee retail chain’s fiscal Q2. Same-store sales tallied -4% on -6% in transactions, giving some insight on what we’ve seen elsewhere: customers beginning to shy away from higher price points in Consumer Discretionary.
Advanced Micro Devices (AMD - Free Report) is also down following its earnings release. This, even as the Zacks Rank #2 (Buy)-rated chipmaker beat expectations on both top and bottom lines: earnings of 62 cents per share outpaced the Zacks consensus by 2 cents, while revenues of $5.47 billion slid past the $5.42 billion analysts were looking for. Its Data Center segment was up, but Gaming and Embedded were down on reported cyclical weakness. Next quarter revenues were bumped higher, but earnings per share (EPS) lower; shares are -3% at this late hour.
A.I. darling Super Microcomputer (SMCI - Free Report) was mixed in its Q1 report after today’s close. Earnings of $6.65 per share surpassed the $5.94 anticipated, while revenues of $3.85 billion missed the $4.08 billion in the Zacks consensus. That said, next quarter and full-year revenue guidance were both cranked higher — to $5.1 billion for Q2 and as high as $15.1 billion for 2024. Shares are down -3.5%, however, as its +200% stock growth year-to-date provides a classic “sell the news” scenario.
Pinterest (PINS - Free Report) is the best-performing stock to have reported earnings after the bell today. Earnings of 20 cents per share cruised past the 14 cents expected, on $740 million in revenues which zipped beyond the $699.9 million analysts had been waiting for, +23% year over year. What’s more, revenue guidance for next quarter was bumped notably higher, with 13 million more monthly active users (MAUs) than anticipated in the quarter came to 518 million. Shares are currently trading north of +20% in the late session.
Image: Bigstock
Markets Close April Lower Ahead of Fed, Q1 Earnings
Tuesday, April 30th, 2024
Markets closed at their lowest levels in more than a week today. This is thanks to a session which ends the month of April profoundly down: the Dow lost -570 points, -1.49%, the Nasdaq -325 points or -2%, the S&P 500 fell -1.57% and the small-cap Russell 2000 was down -1.76%. All four indices hit session lows at the closing bell. Anticipating more hawkishness from the Fed tomorrow looks to be part of this equation, as stronger-than-expected economic numbers continue to push the rate-cut scenario farther out.
This morning, we saw Case-Shiller home price figures grow +7.3% for February. This is the highest print since October of last year, and month-over-month growth of +0.9% is the strongest in eight months. Normally, this would be treated as good news by the stock market — with 19 of 20 cities showing home price growth for the month (only Tampa was lower), led by San Diego at +11.4%, followed by a tie with Chicago and Detroit at +8.9% — but not when we’re looking for inflation to be on the wane. Then again, this is data from a couple months in arrears, so this ultimately amounts to “old” news.
Amazon (AMZN - Free Report) shares jumped +6% moments after Q1 earnings were released after today’s close. Earnings of 98 cents per share on quarterly revenues of $143.3 billion easily took out projections for 82 cents per share and $142.5 billion, respectively. North American sales were up +12%, with International +10%, and AWS revenues higher than expected to $25 billion, +17%. Revenue guidance for next quarter was soft, however, on projected foreign exchange levels. Share are now trading +3% in the late session.
Starbucks (SBUX - Free Report) missed earnings estimates for the second straight month this afternoon. Earnings of 68 cents per share came up short of the 79 cents anticipated, on revenues of $8.56 billion which were light of the expected $9.14 billion for the coffee retail chain’s fiscal Q2. Same-store sales tallied -4% on -6% in transactions, giving some insight on what we’ve seen elsewhere: customers beginning to shy away from higher price points in Consumer Discretionary.
Advanced Micro Devices (AMD - Free Report) is also down following its earnings release. This, even as the Zacks Rank #2 (Buy)-rated chipmaker beat expectations on both top and bottom lines: earnings of 62 cents per share outpaced the Zacks consensus by 2 cents, while revenues of $5.47 billion slid past the $5.42 billion analysts were looking for. Its Data Center segment was up, but Gaming and Embedded were down on reported cyclical weakness. Next quarter revenues were bumped higher, but earnings per share (EPS) lower; shares are -3% at this late hour.
A.I. darling Super Microcomputer (SMCI - Free Report) was mixed in its Q1 report after today’s close. Earnings of $6.65 per share surpassed the $5.94 anticipated, while revenues of $3.85 billion missed the $4.08 billion in the Zacks consensus. That said, next quarter and full-year revenue guidance were both cranked higher — to $5.1 billion for Q2 and as high as $15.1 billion for 2024. Shares are down -3.5%, however, as its +200% stock growth year-to-date provides a classic “sell the news” scenario.
Pinterest (PINS - Free Report) is the best-performing stock to have reported earnings after the bell today. Earnings of 20 cents per share cruised past the 14 cents expected, on $740 million in revenues which zipped beyond the $699.9 million analysts had been waiting for, +23% year over year. What’s more, revenue guidance for next quarter was bumped notably higher, with 13 million more monthly active users (MAUs) than anticipated in the quarter came to 518 million. Shares are currently trading north of +20% in the late session.
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