On today’s episode of Free Lunch, Ryan McQueeney discusses weak economic data from China as well as news involving Lululemon and Aurora Cannabis. He also recaps Citigroup’s earnings results and previews the upcoming reports of JPMorgan and Wells Fargo.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Twitter, and other major streaming platforms.
Stocks were down in morning trading Monday, as Wall Street interpreted weak economic data from China as another sign of slowing global economic conditions and the adverse effects of trade wars. China’s latest reads on import and export activity were well below estimates and near three-year lows on both figures.
Investors today also saw the financial effects of the recent California wildfires, as Pacific Gas & Electric PGE announced that it is pursuing bankruptcy protection thanks to $30 billion in potential liability costs from the natural disasters. While some have suggested PG&E is still hoping for a bailout from the state of California, others have argued that there is simply no way out for the company other than Chapter 11.
There were some positives to discuss on Monday morning, however. For instance, trendy athletic retailer Lululemon (LULU - Free Report) raised its guidance for Q4 revenue and earnings, citing strong customer engagement and product offerings as key reasons for its holiday outperformance. The news comes in contrast to sluggish guidance from mall-based retailers posted last week.
Meanwhile, cannabis investors reacted positively to the news that Canadian producer Aurora Cannabis is planning to buy Whistler Medical Marijuana Corp., an exporter of medical cannabis derivatives and the country’s first organic-certified marijuana company. The deal underscores the international growth potential of these cannabis upstarts.
Wall Street also has plenty of things to think about now that Q4 earnings season is officially underway. Citigroup (C - Free Report) kicked off the festivities this morning, posting mixed results on the back of market-wide volatility during its latest quarter.
Still, the stock moved higher in morning trading after investors liked what they hear on the company’s conference call. Does this spell good news for JPMorgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) , the big banks reporting earnings tomorrow?
To answer this question, Ryan digs into the latest earnings estimates, estimate revision trends, share price movements, and earnings surprise histories of each financial behemoth. Make sure to check out the show to hear more!
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