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Markets Close Flat After Eventful Day; MGM, NXPI, CHGG Beat in Q1
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Market indices went on a bit of a roller-coaster ride in the first trading day of a new week, at least compared to the low-VIX environment we’d been existing in for most of last month, only to close about as flat as possible across the board. The Dow lost -35 points on the session, -0.10%, while the Nasdaq — which had been down nearly -0.4% this morning — closed -0.12%. The S&P 500 finished the day -0.05% while the small-cap Russell 2000 — which had popped +0.9% around 10:30am — came in granularly positive: +0.0017%.
We saw some economic indicators after the market opened today, with April S&P Manufacturing PMI crossing into growth territory to 50.2 (from an upwardly revised 49.2 the previous month), though slightly below the consensus estimate 50.4. ISM Manufacturing is still looking to cross that 50% threshold, but nevertheless moved in the right direction for April: 47.1% from the unrevised 46.3% in March. These are the modestly positive economic prints that will keep the Fed on the hawkish side we’ve grown used to seeing over the past several months.
Construction Spending, this time for March, came in hotter than expected: +0.3%, swinging to a positive outcome from the previous month’s downwardly revised -0.3%, and above the 0.0% expected by analysts. This marks the second positive month in the first three this year, yet only the fourth month in the past eight. Perhaps we’re passing through the trough of high unit prices and supply chain issues into actual profitability in this space for once. If we are, it’s another check-mark in the “No Recession” column, which will keep interest rates higher for longer.
Netherlands-based semiconductor maker NXP Semi (NXPI - Free Report) easily topped expectations for both earnings and sales in its Q1 earnings report released after the closing bell today: earnings of $3.19 per share outpaced the $3.02 anticipated (though still shy of the $3.42 per share in the year-ago quarter) on revenues of $3.12 billion which nudged the $3.00 billion expected for the quarter. The company expressed cautious optimism for its businesses as it continues to navigate through what it calls a “cyclical downturn.”
MGM Entertainment (MGM - Free Report) blew away the Zacks consensus earnings estimate for its Q1 earnings this afternoon: 44 cents per share was 11x times than the $0.04 analysts were looking for, on $387 billion in quarterly sales which eclipsed the $3.51 billion estimate. Macau reopening was the big story here, largely unaccounted for in the estimates: revenues from Macau in the quarter were $618 million from $413 million expected, with Adjusted Property EBITDA of $169 million — more than doubling the $73 million forecast. Shares have bounced around in late trading on the news, but are in the green at this hour.
Silicon Valley-based education technology firm Chegg (CHGG - Free Report) is getting scrambled in today’s after-market activity, down nearly -32% from Monday’s close even after it outperformed on top and bottom lines — 27 cents per share marked a one-penny beat while revenues of $188 million in the quarter took out the $185.25 million expected. Guidance for Q2 revenues is way down from earlier projections — $175-178 million versus $194.3 million in the Zacks consensus, as the company invests heavily in A.I. technologies. For more on CHGG’s earnings, click here.
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Markets Close Flat After Eventful Day; MGM, NXPI, CHGG Beat in Q1
Market indices went on a bit of a roller-coaster ride in the first trading day of a new week, at least compared to the low-VIX environment we’d been existing in for most of last month, only to close about as flat as possible across the board. The Dow lost -35 points on the session, -0.10%, while the Nasdaq — which had been down nearly -0.4% this morning — closed -0.12%. The S&P 500 finished the day -0.05% while the small-cap Russell 2000 — which had popped +0.9% around 10:30am — came in granularly positive: +0.0017%.
We saw some economic indicators after the market opened today, with April S&P Manufacturing PMI crossing into growth territory to 50.2 (from an upwardly revised 49.2 the previous month), though slightly below the consensus estimate 50.4. ISM Manufacturing is still looking to cross that 50% threshold, but nevertheless moved in the right direction for April: 47.1% from the unrevised 46.3% in March. These are the modestly positive economic prints that will keep the Fed on the hawkish side we’ve grown used to seeing over the past several months.
Construction Spending, this time for March, came in hotter than expected: +0.3%, swinging to a positive outcome from the previous month’s downwardly revised -0.3%, and above the 0.0% expected by analysts. This marks the second positive month in the first three this year, yet only the fourth month in the past eight. Perhaps we’re passing through the trough of high unit prices and supply chain issues into actual profitability in this space for once. If we are, it’s another check-mark in the “No Recession” column, which will keep interest rates higher for longer.
Netherlands-based semiconductor maker NXP Semi (NXPI - Free Report) easily topped expectations for both earnings and sales in its Q1 earnings report released after the closing bell today: earnings of $3.19 per share outpaced the $3.02 anticipated (though still shy of the $3.42 per share in the year-ago quarter) on revenues of $3.12 billion which nudged the $3.00 billion expected for the quarter. The company expressed cautious optimism for its businesses as it continues to navigate through what it calls a “cyclical downturn.”
MGM Entertainment (MGM - Free Report) blew away the Zacks consensus earnings estimate for its Q1 earnings this afternoon: 44 cents per share was 11x times than the $0.04 analysts were looking for, on $387 billion in quarterly sales which eclipsed the $3.51 billion estimate. Macau reopening was the big story here, largely unaccounted for in the estimates: revenues from Macau in the quarter were $618 million from $413 million expected, with Adjusted Property EBITDA of $169 million — more than doubling the $73 million forecast. Shares have bounced around in late trading on the news, but are in the green at this hour.
Silicon Valley-based education technology firm Chegg (CHGG - Free Report) is getting scrambled in today’s after-market activity, down nearly -32% from Monday’s close even after it outperformed on top and bottom lines — 27 cents per share marked a one-penny beat while revenues of $188 million in the quarter took out the $185.25 million expected. Guidance for Q2 revenues is way down from earlier projections — $175-178 million versus $194.3 million in the Zacks consensus, as the company invests heavily in A.I. technologies. For more on CHGG’s earnings, click here.
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