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Pre-Market Gives Back Some Gains; Abbott Beats, Raises
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Wednesday, July 20, 2022
Pre-market futures are in a giving mood this morning — in particular, giving back some of its gains over the past few sessions. The Nasdaq has closed higher in three of the last four trading days; the last two of three for the Dow and the S&P 500. At this hour, the Dow is -110 points, while the Nasdaq is -20 and the S&P 500 is -15 points. It’s a relatively mild give-back, but it’s also early.
The thing about today, as opposed to pre-market activity over the past week and in the coming days/weeks, is that we have few economic indicators gracing us ahead of the opening bell. Big-name companies like Tesla (TSLA - Free Report) , United Airlines (UAL - Free Report) and rail giant CSX (CSX - Free Report) all report after the close, while Existing Home Sales for June come out after the regular trading session commences.
What’s expected from Existing Home Sales for last month is a continued lowering from cycle lows posted for May: 5.36 million units are expected to have sold in June, well off the 6+ million pace we were averaging for most of the past year. While we always leave room for a one-month surprise in the data, this slow-down does follow other housing sector metrics showing a clear decline in homebuying activity.
It’s this sort of lower economic print, however, that the Fed looks forward to seeing, in that higher interest rates lead to higher mortgage rates, which dissolves some the demand in the market, creating some slack and room for lowering prices. Because home-buying is one of the priciest things an American consumer buys, a lowering of home prices overall would go a long way toward bringing down future inflation prints.
Ahead of today’s open, Abbott Labs (ABT - Free Report) reported Q2 earnings which easily outperformed expectations on both top and bottom lines: earnings of $1.43 per share well surpassed the $1.10 Zacks consensus estimate, whereas $11.3 billion in sales crushed expectations by nearly a billion dollars, and well ahead of the $10.2 billion reported in the year-ago quarter.
Business is good for Abbott, with Covid testing sales on the rise as a new variant makes its way through the U.S., not to mention the company’s arthritis drug Humira reportedly being the world’s top-selling drug this year. Abbott even raised full-year earnings guidance slightly, though the stock is trading down more than -3% on the earnings report. Abbott is +5% over the past month, but -21% year to date.
Image: Shutterstock
Pre-Market Gives Back Some Gains; Abbott Beats, Raises
Wednesday, July 20, 2022
Pre-market futures are in a giving mood this morning — in particular, giving back some of its gains over the past few sessions. The Nasdaq has closed higher in three of the last four trading days; the last two of three for the Dow and the S&P 500. At this hour, the Dow is -110 points, while the Nasdaq is -20 and the S&P 500 is -15 points. It’s a relatively mild give-back, but it’s also early.
The thing about today, as opposed to pre-market activity over the past week and in the coming days/weeks, is that we have few economic indicators gracing us ahead of the opening bell. Big-name companies like Tesla (TSLA - Free Report) , United Airlines (UAL - Free Report) and rail giant CSX (CSX - Free Report) all report after the close, while Existing Home Sales for June come out after the regular trading session commences.
What’s expected from Existing Home Sales for last month is a continued lowering from cycle lows posted for May: 5.36 million units are expected to have sold in June, well off the 6+ million pace we were averaging for most of the past year. While we always leave room for a one-month surprise in the data, this slow-down does follow other housing sector metrics showing a clear decline in homebuying activity.
It’s this sort of lower economic print, however, that the Fed looks forward to seeing, in that higher interest rates lead to higher mortgage rates, which dissolves some the demand in the market, creating some slack and room for lowering prices. Because home-buying is one of the priciest things an American consumer buys, a lowering of home prices overall would go a long way toward bringing down future inflation prints.
Ahead of today’s open, Abbott Labs (ABT - Free Report) reported Q2 earnings which easily outperformed expectations on both top and bottom lines: earnings of $1.43 per share well surpassed the $1.10 Zacks consensus estimate, whereas $11.3 billion in sales crushed expectations by nearly a billion dollars, and well ahead of the $10.2 billion reported in the year-ago quarter.
Business is good for Abbott, with Covid testing sales on the rise as a new variant makes its way through the U.S., not to mention the company’s arthritis drug Humira reportedly being the world’s top-selling drug this year. Abbott even raised full-year earnings guidance slightly, though the stock is trading down more than -3% on the earnings report. Abbott is +5% over the past month, but -21% year to date.
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