Market Outlook – Bearish oversold – levels to watch are overnight lows as support. Failure to hold the opening tick, and continuation of negative VWAP trend suggests more downside. We are watching 4176 to 4165 as support to hold for upside and then 4265 as resistance in the $ES_F
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 (approx.) Advance goods trade balance for March: Prior -$106.35 bln
0830 (approx.) Wholesale inventories advance for March: Prior 2.5%
0830 (approx.) Retail inventories ex-auto advance for March: Prior 1.4%
1000 Pending Homes Index for March: Prior 104.9
1000 Pending sales change mm for March: Expected -1.6%; Prior -4.1%
Levels to watch
Here’s a look at Metastock
Fear and Greed is moving in an interesting direction – VIX also continues to rise – traders are ignoring what the VIX is saying – I would have expected a greater
As earnings continue – we also have economic releases
News from Reuters
| USA EDITION |
WEDNESDAY, APRIL 27, 2022
• China lockdowns raise earnings risk for chip firms, automakers, industrials
Industrial firms including GE, chipmakers such SK Hynix and automaker Mercedes Benz warned that China’s strict COVID-19 curbs were intensifying supply chain disruptions and raising uncertainty about the business outlook.
• Bunge forecasts higher 2022 earnings as Ukraine crisis pressures crop supplies
Bunge reported a higher quarterly adjusted profit and raised its full-year earnings forecast, as the global farm commodities merchant benefited from higher demand for essential crops since the Ukraine crisis.
• Microsoft forecasts double-digit revenue growth on cloud strength
Microsoft on Tuesday forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services.
• Alphabet misses on revenue as YouTube ad business slowed by Ukraine war
Google parent Alphabet on Tuesday reported its first quarterly revenue miss of the pandemic after the war in Ukraine hurt YouTube ad sales, leaving investors rattled as the global economy sputters.
• Crypto firms seek clearer U.S. rules on their interest-bearing products
Cryptocurrency companies said they remain unsure of U.S. regulations governing products that allow customers to earn interest on holdings instead of trading them, months after such an interest-bearing product drew a $100 million fine from a federal regulator and state governments.
BEFORE THE BELL
Futures for Wall Street’s major indexes rose, with investors placing their hopes on corporate earnings. European shares were up on the back of commodity stocks, while a plunge in German consumer morale capped gains. Japan’s Nikkei closed at two-week lows, while China stocks rebounded on pro-growth optimism. The euro slipped against the dollar on rising concerns around energy safety and growth slowdown in China and Europe. Gold prices dipped, while oil prices were slightly higher after Russia’s Gazprom halted gas supplies to Bulgaria and Poland. Investors will keep a close watch on results from Ford Motor and Meta Platforms.
STOCKS TO WATCH
• Alphabet Inc: Alphabet on Tuesday reported its first quarterly revenue miss of the pandemic after the war in Ukraine hurt YouTube ad sales, leaving investors rattled as the global economy sputters. Alphabet Chief Financial Officer Ruth Porat said it was too early to predict when sales slowed by the war may pick up and warned that the strengthening U.S. dollar would hurt sales even more in the current quarter. Alphabet said first-quarter sales rose to $68.01 billion, up 23% from last year but below the average estimate of $68.1 billion among financial analysts tracked by Refinitiv, its first miss since the fourth quarter of 2019. Notably, YouTube advertising sales of $6.9 billion missed analysts’ target of $7.5 billion, according to FactSet. Google overall derived 1% of its sales in 2021 from Russia, Porat said. Quarterly profit was $16.44 billion, or $24.62 per share, missing expectations of $25.76 per share. Alphabet also said its board had authorized an additional $70 billion in stock repurchases. It has bought back over $81 billion in shares over the last two years.
• Bunge Ltd: The company reported a higher quarterly adjusted profit and raised its full-year earnings forecast, as the global farm commodities merchant benefited from higher demand for essential crops since the Ukraine crisis. Bunge’s agribusiness unit, its largest one, reported an about 7% drop in volumes and a 14.7% rise in net sales on the back of strong oilseed crushing margins amid reduced soybean crops in South America and tightening global supplies of various vegetable oils. Certain mark-to-market impacts, which the company describes as temporary, pushed its net income lower to $4.48 per share in the first quarter ended March 31, compared with $5.52 per share last year. Excluding items, the St. Louis-based firm posted quarterly earnings of $4.26 per share, from $3.13 per share, a year earlier. The company now sees full-year adjusted earnings of $11.50 per share, up from its previous forecast of $9.50 per share.
• Cenovus Energy Inc: The company reported an over seven-fold jump in quarterly profit and nearly tripled its dividend, as supply concerns boosted crude prices to multi-year highs. Cenovus, which agreed to buy rival Husky Energy last year to create Canada’s No. 3 oil and gas producer said upstream production rose to 798,600 barrels of oil equivalent per day (boepd) in the quarter, from 769,254 boepd a year earlier. The company said the base dividend will increase from $0.14 per share to $0.42 per share annually, beginning with the second quarter of this year. Net earnings rose to C$1.63 billion, or 81 Canadian cents per share, for the first-quarter ended March 31, from C$220 million, or 10 Canadian cents per share, a year earlier.
• Check Point Software Technologies Ltd: The company beat estimates with a 2% gain in first-quarter profit and is expected to grow further this year led by its cloud protection products and consolidated cyber security platform. Israel-based Check Point said it earned $1.57 per diluted share excluding one-off items in the January-March period, up from $1.54 a year earlier. Revenue grew 7% to $543 million. The company in 2021 had topped $2 billion for a second straight year. It was forecast to earn $1.54 a share on revenue of $534 million. Deferred revenue rose 14% in the quarter to deferred revenues were $1.67 billion. Check Point said it bought back 2.5 million shares in the quarter, worth $325 million, as part of its share repurchase program.
• Chipotle Mexican Grill Inc: The burrito chain forecast second-quarter same-store sales above analysts’ estimates on Tuesday, betting demand for its burritos and rice bowls will remain buoyant despite a few rounds of price increases. The company forecast comparable restaurant sales growth of 10% to 12% for the current quarter, compared with estimates of 8.8% growth. Comparable sales rose 9% in the first quarter ended March 31, while analysts polled by Refinitiv expected 7.9% growth. On an adjusted basis, Chipotle earned $5.70 per share in the first quarter, beating estimates of $5.64.
• Deutsche Bank AG: The bank posted a better-than-expected 17% rise in first-quarter profit as investment banking revenues climbed, but its share price fell as it warned that the Russia-Ukraine conflict could hurt annual earnings. Net profit attributable to shareholders came in at 1.06 billion euros, better than analyst expectations of around 950 million euros. It was a seventh consecutive quarter of profit, the bank’s longest streak in the black since 2012, and marks its highest quarterly income since 2014. The bank said it was sticking to its annual targets for now, but warned “the current environment is increasingly challenging, and cost pressures have intensified”. It said funds set aside for credit losses were expected to rise “significantly” this year due to the war and slower growth. Deutsche said it now expected revenues at the division to be “slightly higher” this year compared to last. It have previously forecast they would be “essentially flat”.
• General Motors Co: The automaker’s first-quarter profit beat analyst estimates on Tuesday, as the company focused on sales of more expensive models with higher margins, even with production still limited by chip shortages and supply chain disruptions. GM’s net income dipped slightly to $2.9 billion in the quarter, compared with analysts’ estimates of $2.45 billion, as higher prices were not enough to offset an increase in costs. But Chief Executive Officer Mary Barra delivered an upbeat message to investors: “We continue to see a strong pricing opportunity because there is demand for our product.” Barra said GM expects to build 25%-30% more vehicles this year than last despite continued volatility in the supply of semiconductor chips, which the automaker expects to ease in the second half. GM said it expects full-year net income of $9.6 billion to $11.2 billion, and reaffirmed its full-year outlook for adjusted EBIT of $13 billion to $15 billion. GM’s first-quarter revenue of $36 billion was up 11% from $32.5 billion a year ago. Diluted earnings per share were $1.35, compared with $2.03 a year earlier.
• Grupo Televisa SAB: The broadcaster, on Tuesday posted a big jump in first quarter net profit versus a loss in the same period a year earlier, boosted by discontinued operations related to its content merger with Univision. The company’s net profit from January to March reached 52.6 billion pesos compared to a loss of 584 million pesos in the same period in 2021. The company, saw its revenue increase 3.3% from the year-earlier period to total 18.6 billion pesos, according to a statement filed with the Mexican stock exchange. The company’s cable segment posted sales growth of 1.1% with the addition of 336,000 revenue generating units (RGUs) and usage growth of 3.0%. Sales for satellite television service SKY, however, fell 6.2% while usage fell 13.6%, Televisa said. There were 175,000 disconnections in the quarter.
• Microsoft Corp: The company on Tuesday forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services. Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform. That compared with a Wall Street consensus of $20.933 billion. Microsoft reported profit and revenue for its fiscal third quarter that beat Wall Street expectations, also benefiting from demand for its cloud-based services. Third-quarter Azure annual growth of 46.0% was steady from the previous quarter and in line with estimates of 45.6% growth compiled by Visible Alpha. Still, Azure growth has showed a steady drop from fiscal 2020 when it was in the 60% range. The company reported revenue of $49.36 billion in the third quarter, compared with $41.7 billion a year earlier. Analysts on average had expected revenue of $49.05 billion. Net income rose to $16.73 billion, or $2.22 per share, in the quarter ended March 31, from $15.46 billion, or $2.03 per share, a year earlier. That topped analyst targets of $2.19.
• Mondelez International Inc: The Trident gum maker flagged a hit to its annual profit due to the Russia-Ukraine war, even as higher prices and resilient demand helped the Oreo maker top Wall Street estimates for quarterly results. Mondelez expects a 3-cent hit to its adjusted per share earnings in 2022 and a $200 million impact on its revenue. The price increases and strong growth in the Ritz crackers maker’s emerging markets helped lift its organic revenue 8.6% in the first three months of the year, and fueled a raise in its full-year core sales forecast. Mondelez now expects organic net revenue to increase over 4% in 2022. It had previously expected growth in line with its long-term target of more than 3%. Net revenue rose 7.3% to $7.76 billion in the quarter, topping Refinitiv estimates of $7.39 billion, while adjusted profit of 84 cents per share came in higher than the 74 cents expected.
• Teck Resources Ltd: The miner reported a five-fold jump in first-quarter profit, aided by higher prices for copper and steelmaking coal. Teck said its average realized price for copper rose about 15% to $4.51 per pound in the quarter from a year earlier, while its realized steelmaking coal prices more than doubled to $357 per tonne. The miner, however, said inflationary pressures had increased its quarterly operating costs by 13% from last year, with nearly half the rise owed to higher diesel costs. The company said profit attributable to shareholders rose to C$1.6 billion, or C$2.93 per share, from C$305 million, or 57 Canadian cents per share, a year earlier.
• Spotify Technology SA: The audio streaming platform reported quarterly revenue that beat analysts’ estimates on higher advertising income and as more people subscribed to its premium service. Total monthly active users rose 19% to a record 422 million in the first quarter. The Swedish company posted a 24% increase in revenue to 2.66 billion euros in the quarter. Analysts on average had expected revenue of 2.62 billion euros. The company now expects total monthly active users of 428 million in the second quarter following the closure of its Russian operations and the reversal of a loss of users after a service outage in March. Spotify forecast second-quarter revenue of 2.8 billion euros, compared with estimates of 2.81 billion euros. Premium subscribers, who account for most of the company’s revenue, rose to 182 million from 158 million, while advertisement-supported revenue rose 31% to 282 million euros.
• STMicroelectronics NV: The chipmaker reported higher-than-expected earnings in the first quarter as strong demand in microcontrollers offset a temporary fall in production due to COVID-19 restrictions in China. STMicro said its first-quarter sales came slightly above its targets at $3.55 billion for a gross margin of 46.7%, and beat the $3.49 billion average of seven analysts’ estimate. Diluted earnings per share over the period came at $0.79 apiece, above Refinitiv’s mean analyst estimate of 71 cents per share. STMicro forecast its revenue in 2022 to be in the range of $14.8 billion to $15.3 billion. It expects second-quarter net revenue to be about $3.75 billion, reflecting a 5.8% growth compared with the first quarter.
• Ternium SA: The steel producer’s net income rose 24% to $877.5 million in the first quarter from the year-ago period, the company said on Tuesday, citing higher steel prices partially offset by high costs of raw materials. The company, which operates in Mexico, Brazil, Argentina, Colombia, the United States and Central America, posted a 32% increase in revenue to $4.30 billion during the January to March period versus the same quarter a year earlier. Revenue per ton was just under the record levels reached last quarter, the company said. Earnings before interest, tax, depreciation and amortization (EBITDA) for the three months climbed to $1.21 billion, beating the Refinitiv estimate of $1.1 billion. The company said it expected EBITDA to rise in the second quarter due to higher steel prices and “further growth in shipments.”
• Texas Instruments Inc: The chipmaker forecast second-quarter revenue below Wall Street estimates on Tuesday, hit by reduced demand due to COVID-19 lockdowns in China. The company said the issues were primarily due to disruptions at the factories of its customers and not due to shipping or distribution problems, adding its own factories have been running at high levels of utilization. Texas Instruments expects second-quarter revenue to be between $4.20 billion and $4.80 billion, compared with analysts’ expectations of $4.94 billion. For the first quarter, Texas Instruments’ revenue rose 14% to $4.91 billion. Analysts were expecting revenue of $4.74 billion.
• Visa Inc: The world’s largest payments processor said on Tuesday it expects revenue to accelerate past pre-pandemic levels, reassuring investors of a sustained recovery against the backdrop of challenging macroeconomic conditions. Visa, which in March suspended its operations in Russia, warned of an about 4% hit to its revenue this year from the Ukraine conflict, the latest global company to flag an impact from the crisis. Still, the payments giant said it was currently not seeing any material impact on cross-border travel in other parts of Europe as a result of the conflict. Cross-border volumes jumped 38% during the second quarter, with total payment volumes rising 17%. The company reported net income of $3.6 billion, or $1.70 per share, above analysts’ average estimate of $1.65 per share. Visa’s operating expenses, however, surged 11% to $2.4 billion as it spent more on employee compensation and marketing.
In Other News
• Airbnb Inc: The European Court of Justice rejected a case brought by accommodation services company Airbnb Ireland against Belgian regional legislation requiring it to provide information to tax authorities on tourist transactions. The court ruled that requiring providers of property intermediation services and, in particular, operators of an electronic accommodation platform, to transmit to tax authorities certain particulars of tourist transactions was not contrary to European Union law. Airbnb had argued that the requirement contravened the principle of the freedom to provide services. However, the court said in a statement that the ruling concluded that – because it was of a fiscal nature – the requirement was excluded from the scope of the EU directive on electronic commerce.
• Air Products and Chemicals Inc: A unit of Indonesia’s biggest coal miner PT Bumi Resources and Air Products and Chemicals will jointly invest in a methanol facility, an Indonesian minister and Bumi executive said. Bumi’s Kaltim Prima Coal will build the facility in Bengalon, East Kalimantan, with an annual capacity to produce 1.8 million tonnes of methanol, director Dileep Srivastava told Reuters. He added the joint venture company will invest “around $2 billion all in”.
• Amazon.com Inc: U.S. Senator Bernie Sanders on Tuesday called for President Joe Biden to issue an executive order to cut off federal contracts to Amazon.com until the e-commerce company stops what he described as “illegal anti-union activity.” Workers at an Amazon warehouse in New York City recently voted to form the first union at the second-largest U.S. private employer. Amazon objected and accused the union of threatening workers unless they voted to organize, an allegation denied by the labor group. Amazon workers from more than 100 other U.S. work sites have expressed interest in unionizing. Separately, the U.S. Occupational Safety and Health Administration issued a hazard alert letter to Amazon.com on Tuesday after six contractors were fatally injured and another was severely injured when a tornado struck Amazon’s Edwardsville, Illinois, warehouse in December 2021.
• BioNTech SE & Pfizer Inc: Pfizer and its partner BioNTech said on Tuesday that they had submitted an application to the U.S. health regulator for the authorization of a booster dose of their COVID-19 vaccine for children aged 5 to 11 years. The companies earlier this month reported data from a mid-to-late stage study showing a third dose of their shot increased protection against the original coronavirus version and the Omicron variant among children in the age group. It is unclear how much demand there is for a third vaccine dose in the age group. Just 28% of children aged 5 to 11 years – around 8.2 million – are fully vaccinated, according to data from the U.S. Centers for Disease Control and Prevention. There has also been some skepticism on the need for boosters in younger children given the reduced risk of severe infection and hospitalization in the age group.
• Canopy Growth Corp: The pot producer said it would lay off about 250 employees as part of a cost-cutting plan as the company tries to achieve long-elusive profitability. The moves are expected to yield cost-savings of between C$100 million and C$150 million within 12 to 18 months. Yet the company, which lost C$67.4 million in the third quarter, did not set a new timeline for turning profitable. Canopy said it expected to take charges of C$250 million to C$300 million in the fourth quarter, most of which would relate to the write-down of excess inventory. It also expects to incur between C$100 million and C$250 million in impairment charges, largely driven by goodwill and intangible asset impairments. The company had 3,259 employees, including 2,362 full-time employees in Canada, as of March 2021.
• ConocoPhillips: Three Democratic U.S. lawmakers asked the head of the company for more information about a month-old natural gas leak from an oilfield in northern Alaska and implications for its nearby project on public lands. U.S. Representative Raul Grijalva, the chairman of the House Committee on Natural Resources, and two other Democrats sent a letter to Ryan Lance, the chairman and chief executive of ConocoPhillips, asking why it took a month to identify the leak at its Alpine field and control it. More than 7.2 million cubic feet of natural gas, the main component of which is the potent greenhouse gas methane, escaped from the oilfield, the company and regulators said this month.
• Exxon Mobil Corp: The company on Tuesday said it found oil in three new wells drilled off the coast of Guyana, raising recoverable oil and gas potential from its discoveries to nearly 11 billion barrels. The discoveries continue a run of exploration successes that date to 2015, and lifts potential oil and gas volumes by nearly 1 billion barrels. Exxon and partners Hess Corp and CNOOC are responsible for almost all oil and gas output in the South American country. Guyana has emerged as a key source for Exxon’s future production, with 31 oil discoveries in its giant Stabroek block so far. It and partners say they plan to pump 1.2 million barrels of oil and gas per day from the block by 2027.
• Ford Motor Co & Stellantis NV: A regulatory gap allows automakers like Ford and BMW to make U.S. cars that emit more ultrafine particles that harm human health than equivalent models sold in Europe and other markets, according to new research. British testing specialist Emissions Analytics took four pairs of cars – from Ford, BMW, Toyota and Stellantis – and compared the impact of tailpipe filters that are widely used in Europe where regulations limit the number of harmful particles that can be emitted, but not in the United States where the same regulations do not apply. China and India use similar standards to Europe. According to industry estimates, a gasoline particulate filter costs carmakers around $200. Emissions Analytics estimated around 300 million gasoline-powered internal combustion engine (ICE) vehicles travelling 10,000 miles annually on U.S. roads for the next decade will unnecessarily emit 1.6 septillion harmful particles.
• JetBlue Airways Corp: The carrier said it will trim its summer schedule to address a series of challenges ahead of what could be a record U.S. travel season as the COVID pandemic recedes. JetBlue said it is reducing its originally planned summer schedule by more than 10%, and scheduled aircraft utilization will be down 10-15% from 2019. JetBlue said it plans to grow capacity 0-5% from 2019 levels, down from its original plan for 11-15% growth. JetBlue cited the impact of surging costs for jet fuel. JetBlue Chief Executive Robin Hayes told Reuters the new plan builds more flexibility into its schedule after acknowledging the airline “let down” customers and crew members with its performance in April and “we knew we had to do a significant reset ahead of the summer so we can deliver a more operable, reliable operation.”
• Johnson & Johnson: The company has filed a lawsuit against drug distributors and a pharmacy seeking to stop the sale of counterfeit versions of its HIV drugs, months after a similar case brought by Gilead Sciences. In a complaint filed April 7 and made public on Tuesday, J&J said it had learned of widespread counterfeiting through complaints from patients who received the wrong pills in their prescription bottle, and from the voluntary return of hundreds of bottles of counterfeit drugs from one of the defendants, distributor ProPharma Distribution. The company also said that distribution of counterfeit versions of its HIV pills had come to light through Gilead’s lawsuit, filed in January. The drugs at issue include Symtuza, a multi-drug combination treatment, as well as Prezcobix, Prezista and Edurant.
• Kellogg Co: The food company is taking the British government to court over new rules that would stop some of its breakfast cereals being displayed prominently in grocery stores because of their high sugar content. Kellogg’s, whose brands include Frosties, Coco Pops and Crunchy Nut, said the formula being used by the government to measure the nutritional value of cereals was wrong and not being implemented legally. “It measures cereals dry when they are almost always eaten with milk,” said Chris Silcock, Kellogg’s UK Managing Director. “All of this matters because unless you take account of the nutritional elements added when cereal is eaten with milk, the full nutritional value of the meal is not measured.” Silcock said the company was going to court to get the formula changed.
• Lucid Group Inc: The electric carmaker on Tuesday said it has signed an agreement with the government of Saudi Arabia for the purchase of up to 100,000 of its vehicles over the next 10 years. Saudi Arabia commits to purchase 50,000 vehicles under the agreement, with an option to buy an additional 50,000 vehicles during the ten-year time frame, Lucid said in a statement. The deal marks the latest tie-up between the California-based EV company and Saudi Arabia, whose Public Investment Fund is Lucid’s largest shareholder, with about a 61% stake in the company.
• Mattel Inc: The toymaker is exploring a sale and has held talks with buyout firms, including Apollo Global Management and L Catterton, a source familiar with the matter told Reuters on Tuesday. The talks on a possible sale come a few months after the California-based company’s chief executive officer, Ynon Kreiz, said Mattel had completed its turnaround plan and was in “growth mode”.
• Meta Platforms Inc: WhatsApp will within weeks roll out cashback rewards to lure more Indians to its peer-to-peer payments service and is testing similar incentives for merchant payments, two sources said, as the company seeks to compete with rivals including Google. The latest move comes days after WhatsApp won regulatory approval to more than double its payments offering to 100 million users in India, its biggest market with more than half a billion users overall. WhatsApp will before the end of May launch the cashback offer of up to 33 Indian rupees for transfers users make on its payments service, which allows contacts to send each other funds from within the messenger app, said the sources, who have direct knowledge of the company’s plans.
• Netflix Inc: The company on Tuesday announced a multi-film deal with Japan’s Studio Colorido, as the streaming giant ramps up its anime offering and looks to Asia for growth. Netflix is co-producing three feature films with Studio Colorido including “Drifting Home”, which premieres in September, as it invests more deeply in original anime. The film will also premiere in cinemas domestically. Anime has proven a draw for Netflix in both Japan, where almost 90% of its users watch it, and globally, where half of users tuned in last year, with rivals including Amazon and Disney also racing to offer such content.
• Robinhood Markets Inc: The retail trading platform said on Tuesday it is laying off about 9% of its full-time employees. The company, which is reporting its quarterly results later this week, said the rapid headcount growth has led to some duplicate roles and job functions. As of Dec. 31, the company’s total headcount was 3,800.
• Tesla Inc & Twitter Inc: Tesla lost $126 billion in value on Tuesday amid investor concerns that Chief Executive Elon Musk may have to sell shares to fund his $21 billion equity contribution to his $44 billion buyout of Twitter. Tesla is not involved in the Twitter deal, yet its shares have been targeted by speculators after Musk declined to disclose publicly where his cash for the acquisition is coming from. Separately, Elon Musk will have to pay Twitter a fee of $1 billion if the billionaire terminates his $44 billion cash deal for the social media company, it said in a filing on Tuesday.
• Walgreens Boots Alliance Inc: The pharmacy chain and other defendants on Tuesday said they were not to blame for the opioid crisis in San Francisco, and that they acted responsibly when providing legal medications to patients in pain. The trial, which kicked off Monday, is the first to target drug manufacturers, distributors and pharmacies over the addictive pain medicines. San Francisco has accused Walgreens, Teva Pharmaceutical Industries, AbbVie’s Allergan unit, and drug distributor Anda, which is owned by Teva, of creating a “public nuisance” by flooding the city with prescription opioids and failing to prevent the drugs from being diverted for illegal use. Drugmakers Teva and Allergan said on Tuesday that they were minor players in the crisis compared to companies like Purdue Pharma and the wealthy Sackler family that owns the now bankrupt company.
With inflation, gold notes and cards find their way into America’s wallet
Gold’s use as a currency started gaining traction after the financial crisis of 2007-2009 and has accelerated during the pandemic since 2020 as the government spent trillions, and the Federal Reserve bought unprecedented amounts of bonds in an effort to revive the economy. While it will not challenge the primacy of the greenback, its use is growing fast. Innovations that allow people to use the metal for even the smallest daily transactions are helping to propel the movement.
• Alphabet Inc: Jefferies cuts target price to $3,400 from $3,600, after Youtube ad sales missed estimates in the first quarter.
• Archer-Daniels-Midland Co: Credit Suisse raises target price to $92 from $88, following the company’s strong first-quarter results and raised guidance for 2022.
• General Electric Co: Credit Suisse cuts target price to $102 from $113, to reflect increased uncertainty around end market recovery in renewables, healthcare, and commercial aerospace during 2022 based on geopolitical conflict, COVID-19 and supply chain concerns.
• General Motors Co: RBC cuts target price to $58 from $70, citing potential slowdown in auto sales and the company’s ability to transition its portfolio to electrification.
• United Parcel Service Inc: Baird cuts target price to $210 from $235, to account weaker volume trends during the first quarter.
COMPANIES REPORTING RESULTS
Aflac Inc: Expected Q1 earnings of $1.37 per share
Align Technology Inc: Expected Q1 earnings of $2.22 per share
American Water Works Company Inc: Expected Q1 earnings of 77 cents per share
Amgen Inc: Expected Q1 earnings of $4.09 per share
Amphenol Corp: Expected Q1 earnings of 61 cents per share
Avalonbay Communities Inc: Expected Q1 earnings of 87 cents per share
CH Robinson Worldwide Inc: Expected Q1 earnings of $1.54 per share
Discover Financial Services: Expected Q1 earnings of $3.62 per share
Duke Realty Corp: Expected Q1 earnings of 19 cents per share
Entergy Corp: Expected Q1 earnings of $1.34 per share
Equinix Inc: Expected Q1 earnings of $1.65 per share
Everest Re Group Ltd: Expected Q1 earnings of $9.42 per share
Ford Motor Co: Expected Q1 earnings of 37 cents per share
Hess Corp: Expected Q1 earnings of $1.13 per share
Hologic Inc: Expected Q2 earnings of $1.60 per share
Las Vegas Sands Corp: Expected Q1 loss of 24 cents per share
Meta Platforms Inc: Expected Q1 earnings of $2.56 per share
Mid-America Apartment Communities Inc: Expected Q1 earnings of 82 cents per share
Molina Healthcare Inc: Expected Q1 earnings of $4.66 per share
Norfolk Southern Corp: Expected Q1 earnings of $2.92 per share
Old Dominion Freight Line Inc: Expected Q1 earnings of $2.39 per share
O’Reilly Automotive Inc: Expected Q1 earnings of $7.48 per share
PayPal Holdings Inc: Expected Q1 earnings of 88 cents per share
PTC Inc: Expected Q2 earnings of $1.14 per share
Qualcomm Inc: Expected Q2 earnings of $2.91 per share
Raymond James Financial Inc: Expected Q2 earnings of $1.64 per share
Rollins Inc: Expected Q1 earnings of 14 cents per share
ServiceNow Inc: Expected Q1 earnings of $1.70 per share
Tyler Technologies Inc: Expected Q1 earnings of $1.71 per share
United Rentals Inc: Expected Q1 earnings of $5.00 per share
Westinghouse Air Brake Technologies Corp: Expected Q1 earnings of $1.12 per share