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4th Straight Trading Day Higher; CRM, CRWD & More Report
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Market indices spent its fourth straight session closing in the green today, albeit not with a bullet: the Dow gained +28 points, +0.08%, while the S&P 500 brought in +0.37%. The Nasdaq once again outshone its stock market index rivals: +71 points, +0.51%, while the small-cap Russell 2000 gained a respectable +0.46%. We’re still down on these indices for the past month, as August has presented many challenges — from -1.6% on the S&P to -5% on the Russell — but recent economic data seems to have turned a bit of this around.
Take the rather Goldilocks-like ADP (ADP - Free Report) private-sector payrolls for this month out before today’s opening bell: +177K from a whopping +371K the previous month. One of these numbers depicts a cooling economy that’s still secure in its labor force, the other looks like inflation is still a raging fire no one can put out. We also saw a downward revision on Q2 GDP to +2.1% from +2.4%, more in-line with Q1’s +2.0% than the current lofty expectations for Q3 (which may be revised down). So recent data has clearly been on the side of our better-behaved angels.
Salesforce (CRM - Free Report) shares are +6% in late trading on Q2 earnings results released after the bell today: earnings of $2.12 per share tidily outperformed the $1.90 in the Zacks consensus (and the $1.19 per share reported in the year-ago quarter), while revenues of $8.6 billion improved on the expected $8.52 billion. Salesforce is one of those companies that simply does not miss earnings expectations, but the fact that the company raised guidance for both next quarter and full year says a lot about how this Zacks Rank #2 (Buy) firm is shaping up this year.
Crowdstrike (CRWD - Free Report) also easily took out estimates in its Q2 report this afternoon, reporting earnings of 74 cents per share on revenues of $731.6 million, well past the 56 cents per share and $725.5 million analysts were looking for. Revenues grew +36% year over year, while Gross Margins were +78%. Yet stocks were trading down on the news, -1%, perhaps because the cybersecurity firm (which also carries a Zacks Rank #2) is already up more than +40% year to date. The Monday downgrade from Morgan Stanley has likely not helped.
San Francisco-based Okta (OKTA - Free Report) , a cloud-based firm which calls itself the World’s Identity Company, are seeing its shares pop +10% on its Q2 earnings print after today’s close: earnings of 34 cents per share easily surpassed the 21 cents in our Zacks consensus, on revenues of $556 million which sped past the $534.06 million we had been expecting. The company also expects earnings per share for the full year to reach $1.17-1.20 per share; the Zacks view had been for 91 cents per share.
Tomorrow morning, we get the full PCE report for July, including a key core PCE read year over year expected to tick up to +4.2% from +4.1% managed a quarter ago. Nominal Personal Income and Spending results will also be out, as will typical Thursday morning Weekly Jobless Claims, both initial and continuing. Also, earnings reports from Campbell Soup (CPB - Free Report) and Dollar General (DG - Free Report) , among others, are expected out in the morning. Questions or comments about this article and/or author? Click here>>
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4th Straight Trading Day Higher; CRM, CRWD & More Report
Market indices spent its fourth straight session closing in the green today, albeit not with a bullet: the Dow gained +28 points, +0.08%, while the S&P 500 brought in +0.37%. The Nasdaq once again outshone its stock market index rivals: +71 points, +0.51%, while the small-cap Russell 2000 gained a respectable +0.46%. We’re still down on these indices for the past month, as August has presented many challenges — from -1.6% on the S&P to -5% on the Russell — but recent economic data seems to have turned a bit of this around.
Take the rather Goldilocks-like ADP (ADP - Free Report) private-sector payrolls for this month out before today’s opening bell: +177K from a whopping +371K the previous month. One of these numbers depicts a cooling economy that’s still secure in its labor force, the other looks like inflation is still a raging fire no one can put out. We also saw a downward revision on Q2 GDP to +2.1% from +2.4%, more in-line with Q1’s +2.0% than the current lofty expectations for Q3 (which may be revised down). So recent data has clearly been on the side of our better-behaved angels.
Salesforce (CRM - Free Report) shares are +6% in late trading on Q2 earnings results released after the bell today: earnings of $2.12 per share tidily outperformed the $1.90 in the Zacks consensus (and the $1.19 per share reported in the year-ago quarter), while revenues of $8.6 billion improved on the expected $8.52 billion. Salesforce is one of those companies that simply does not miss earnings expectations, but the fact that the company raised guidance for both next quarter and full year says a lot about how this Zacks Rank #2 (Buy) firm is shaping up this year.
Crowdstrike (CRWD - Free Report) also easily took out estimates in its Q2 report this afternoon, reporting earnings of 74 cents per share on revenues of $731.6 million, well past the 56 cents per share and $725.5 million analysts were looking for. Revenues grew +36% year over year, while Gross Margins were +78%. Yet stocks were trading down on the news, -1%, perhaps because the cybersecurity firm (which also carries a Zacks Rank #2) is already up more than +40% year to date. The Monday downgrade from Morgan Stanley has likely not helped.
San Francisco-based Okta (OKTA - Free Report) , a cloud-based firm which calls itself the World’s Identity Company, are seeing its shares pop +10% on its Q2 earnings print after today’s close: earnings of 34 cents per share easily surpassed the 21 cents in our Zacks consensus, on revenues of $556 million which sped past the $534.06 million we had been expecting. The company also expects earnings per share for the full year to reach $1.17-1.20 per share; the Zacks view had been for 91 cents per share.
Tomorrow morning, we get the full PCE report for July, including a key core PCE read year over year expected to tick up to +4.2% from +4.1% managed a quarter ago. Nominal Personal Income and Spending results will also be out, as will typical Thursday morning Weekly Jobless Claims, both initial and continuing. Also, earnings reports from Campbell Soup (CPB - Free Report) and Dollar General (DG - Free Report) , among others, are expected out in the morning.
Questions or comments about this article and/or author? Click here>>