Good morning,
This earnings season is being played out along with some major economic issues in the forefront – namely trade/tariff problems with China, and a Federal Reserve Bank that some investors believe is being too aggressive in raising interest rates. As a result, there has been more overall market volatility this earnings season, in addition to the usual stock specific movement based on individual reports. Looking at some of the notable highlights and lowlights so far…..
Twitter stock flew higher after the company announced a hefty beat on both earnings and revenues. Boeing shares gained altitude as well, after they beat on earnings and raised full year guidance. General Motors shares raced ahead, as it sold vehicles at higher prices and pulled in with higher earnings. Starbucks shares were extra hot after serving revenue, profit, and same-store sales all ahead of street estimates. Facebook shares looked good, posting a big earnings beat and giving investors a reason to smile. On the other side of things……
3M shares did not hold up after reporting earnings that were below consensus estimates. Amazon shareholders got rained on after the company’s revenue and fourth-quarter outlook were below market expectations. Kraft Heinz shares tumbled after the earnings number was not meaty enough to satisfy investors. Concluding with perhaps the most notable earnings report – Apple shares got a slice taken out of them (even though the headline numbers were good), after offering light guidance and announcing it will no longer break out individual sales numbers for the iPhone.
Looking to the week ahead, we’ll be getting more earnings action, as companies scheduled to report include Booking Holdings, Eli Lilly, Archer Daniels Midland, CVS Health, Monster Beverage, Marathon Oil, Wynn Resorts, Johnson Controls, and Walt Disney. As always, please call us with any questions or if you would like to set up a meeting.
All the best,
Southport Station Financial Management, LLC