We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
A Cooler Start to the Trading Week; TSN Mixed, SAVE Misses
Read MoreHide Full Article
Monday, May 6th, 2024
After last week, stock market news simmers down a bit. The previous five work days represented a peak number of reports on calendar Q1 earnings, in addition to it being Jobs Week — it brought us not only Friday’s Employment Situation report (175K new jobs filled; 3.9% Unemployment Rate) but private sector payrolls from ADP, JOLTS data from the previous month and Weekly Jobless Claims. This week, we see some monthly reports on consumer activity and a lot of speeches from Fed members, but that’s about it.
Next week, the action picks up somewhat again. That’s when we get crucial inflation data like the Consumer Price Index (CPI) and Producer Price Index (PPI), along with Retail Sales and housing numbers like Starts/Permits and the Homebuilders Survey. So far — and this points to a key reason behind the two or three-week winning streaks in the market (depending on the index) — what we are seeing remains consistent, if at times inconveniently, with an overall “soft landing” economic scenario.
We don’t get another Fed meeting til mid-next month. By that point, even though it remains highly unlikely that the first 25 basis-point (bps) rate cut since July of last year would be forthcoming (meaning the first possible cut could only happen a full year after the final rate hike, or longer), we’ll at least get a more articulate level of insight on the economy as a whole by then. Ultimately, these high interest rates (5.25-5.50%) are having a cooling affect on the domestic economy, and while we’re seeing other countries starting to loosen up monetary policy, Fed Chair Jerome Powell & Co. feel no such compulsion at this stage.
Fiscal Q2 earnings are out for Tyson Foods (TSN - Free Report) this morning. Earnings of 62 cents per share amounted to a massive +77% beat over the Zacks consensus, while top-line revenues came in a tad light, by -0.46%, to $13.07 billion in the quarter. Free cash flow and sales volume both came in somewhat lower than expected, and revenue guidance is expected flat for 2024 from 2023 levels. But because the stock is still well off its February 2022 highs, shares are up +2% in early trading. For more on TSN’s earnings, click here.
Discount airline Spirit (SAVE - Free Report) also posted quarterly results ahead of the bell. Here we saw slight misses on both top and bottom lines in Q1 for the struggling carrier. Negative earnings of -$1.46 per share missed consensus by 3 cents, while revenues of $1.27 billion was -0.43% from expectations. The company ends its positive quarterly earnings streak at two, and the -77% share price year to date is down another -3% in today’s pre-market. For more on SAVE’s earnings, click here.
Image: Bigstock
A Cooler Start to the Trading Week; TSN Mixed, SAVE Misses
Monday, May 6th, 2024
After last week, stock market news simmers down a bit. The previous five work days represented a peak number of reports on calendar Q1 earnings, in addition to it being Jobs Week — it brought us not only Friday’s Employment Situation report (175K new jobs filled; 3.9% Unemployment Rate) but private sector payrolls from ADP, JOLTS data from the previous month and Weekly Jobless Claims. This week, we see some monthly reports on consumer activity and a lot of speeches from Fed members, but that’s about it.
Next week, the action picks up somewhat again. That’s when we get crucial inflation data like the Consumer Price Index (CPI) and Producer Price Index (PPI), along with Retail Sales and housing numbers like Starts/Permits and the Homebuilders Survey. So far — and this points to a key reason behind the two or three-week winning streaks in the market (depending on the index) — what we are seeing remains consistent, if at times inconveniently, with an overall “soft landing” economic scenario.
We don’t get another Fed meeting til mid-next month. By that point, even though it remains highly unlikely that the first 25 basis-point (bps) rate cut since July of last year would be forthcoming (meaning the first possible cut could only happen a full year after the final rate hike, or longer), we’ll at least get a more articulate level of insight on the economy as a whole by then. Ultimately, these high interest rates (5.25-5.50%) are having a cooling affect on the domestic economy, and while we’re seeing other countries starting to loosen up monetary policy, Fed Chair Jerome Powell & Co. feel no such compulsion at this stage.
Fiscal Q2 earnings are out for Tyson Foods (TSN - Free Report) this morning. Earnings of 62 cents per share amounted to a massive +77% beat over the Zacks consensus, while top-line revenues came in a tad light, by -0.46%, to $13.07 billion in the quarter. Free cash flow and sales volume both came in somewhat lower than expected, and revenue guidance is expected flat for 2024 from 2023 levels. But because the stock is still well off its February 2022 highs, shares are up +2% in early trading. For more on TSN’s earnings, click here.
Discount airline Spirit (SAVE - Free Report) also posted quarterly results ahead of the bell. Here we saw slight misses on both top and bottom lines in Q1 for the struggling carrier. Negative earnings of -$1.46 per share missed consensus by 3 cents, while revenues of $1.27 billion was -0.43% from expectations. The company ends its positive quarterly earnings streak at two, and the -77% share price year to date is down another -3% in today’s pre-market. For more on SAVE’s earnings, click here.
After today’s close, we’ll see earnings results from cybersecurity firm Palantir (PLTR - Free Report) and retail REITS SPG (SPG - Free Report) and Vornado (VNO - Free Report) . This week, with the Apples and Teslas already having reported, we get earnings from Walt Disney (DIS - Free Report) , ride-sharing platforms Uber (UBER - Free Report) and Lyft (LYFT - Free Report) , and the first-ever public earnings report from Reddit (RDDT - Free Report) . Pre-market futures are up modestly across major indices at this hour.
Questions or comments about this article and/or author? Click here>>