Tesla’s profits are strong, S&P 500 and NASDAQ rise sharply

live7 updates

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  Tuesday, April 23, 2024, 12:02 PM EDT

  Stocks “close” to the market bottom — here’s what to look for

  Signs of pessimism are beginning to spread in US stocks. That means the market bottom could be right around the corner, said Tom Lee, head of research at Fundstrat.

  In a video briefing sent to clients on Tuesday morning, Lee noted that the market is “near the bottom.” He explained several reasons behind his thesis, from rising inflation expectations to hedge fund short interest soaring to 2022 levels.

  So how do you know if the market has bottomed? Lee cited two key technical levels to watch for the S&P 500 (^GSPC): 5019.02 and 4953.56.

  If the index rises above 5019.02, it would be a positive sign that the worst is over. Conversely, if the index falls below 4953.56, it will “set a buy signal.”

  Still, the strategist cautioned that “market bottoms are dangerous,” adding that while they present opportunities, they also create “a lot of turmoil.”

  Notably, while Treasury yields are off their all-time highs, oil and the Vix volatility index are also falling. These are all positive indicators of market recovery, Lee said.

  He advised investors to keep an eye on “potential catalysts” such as earnings and PCE inflation data throughout the trading week.

• 

  Tuesday, April 23, 2024, 11:14 a.m. EDT

  Revenue summary: GM, UPS, JetBlue, Spotify, PepsiCo

  A large amount of revenue arrived before the bell rang this morning. Here is the summary:

  General Motors (GM): The company’s stock rose about 5% early Tuesday after the company showed improvement in both sales and bottom line and raised its full-year outlook. GM also reported reductions in battery costs for electric vehicles (EVs), adding that it expects “variable profits” to be positive for the EV business in the second half of 2024.

  United Parcel Service (UPS): UPS reported mixed results Tuesday as first-quarter delivery volumes declined. The company surpassed profits amid a $1 billion cost-cutting effort. The stock opened the trading day higher, rising more than 2%.

  Jet Blue (JBLU): Shares fell nearly 20% after the company lowered its full-year earnings outlook, saying increased capacity in Latin America would weigh on revenue growth in coming months.

  Spotify (spot): The audio giant announced its first-quarter financial results on Tuesday, with both sales and bottom line profits exceeding expectations. The company has also been able to increase profits as it continues to implement its recent “efficiency” strategy. Monthly active users (MAU) were lower than expected, but the stock is still soaring, rising as much as 15% in early trading.

  PepsiCo (pep): PepsiCo beat Wall Street expectations in the first quarter, but a recall from Quaker Foods’ North American unit hit demand, and the unit reported a 22% decline in sales volume. Meanwhile, higher prices weighed on other segments, including beverages and Frito-Lay North America. The stock price fell about 2%.

• 

  Tuesday, April 23, 2024, 10:22am EDT

  Pulte Group CEO says US is ‘structurally short’ of millions of homes

  Homebuilder Pulte Group (PHM) said Tuesday that the chronic housing shortage in the United States is giving the company an opportunity to expand its market share.

  “After more than a decade of construction shortages, our nation is estimated to be structurally short of millions of homes,” Pulte Group CEO Ryan Marshall said in a press release. said. “Our strong financial performance reflects favorable demand conditions and a balanced approach that enables us to more effectively meet the individual needs of first-time, emerging, and active adult consumers. It reflects both operating models.”

  The comments came as the company reported first-quarter results that beat Wall Street expectations, sending its stock up as much as 4%.

  PHM reported earnings of $3.10 per share and revenue of $3.95 billion. Wall Street analysts had expected EPS of $2.36 and revenue of $3.58 billion.

  Home builders like Pulte have been able to cope with the high interest rate environment by offering incentives to buyers. Last week, the average interest rate on a 30-year fixed loan was over 7%, according to Freddie Mac.

  Marshall also said on the company’s first-quarter earnings call that home prices are likely to continue rising due to limited inventory.

  “Our ability to offer targeted incentives, particularly mortgage rate buydowns, is a powerful tool to help close the affordability gap,” he said.

  He added that in the first quarter, “approximately 25% of homebuyers took advantage of our national interest rate program. In a world where the consensus is that interest rates will remain high for an extended period of time, our interest rate incentives is likely to be an even greater competitive advantage, especially in Comparison with existing home sellers. ”

• 

  Tuesday, April 23, 2024, 9:32am EDT

  Stock prices start rising ahead of major financial results

  US stocks opened higher on Tuesday ahead of a number of important earnings reports.

  The S&P 500 (^GSPC) rose about 0.5% after recovering from six days of losses in the previous session. The Dow Jones Industrial Average (^DJI) rose about 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) contract also rose 0.4%.

• 

  Tuesday, April 23, 2024, 9:18am EDT

  IPO prospects are heading in the right direction

  While there may be concerns about what the Fed may or may not do on interest rates this year, private companies are still leaning toward entering the public markets this year.

  That’s according to new IPO research released Tuesday by Edelman Smithfield and shared exclusively with Yahoo Finance. About 89% of investors expect activity to resume in the U.S. IPO market between April and December 2024, according to the survey. About 91% of investors say they are likely to invest about the same amount or more in a future IPO.

  Edelman Smithfield surveyed 106 full-time chief investment officers, portfolio managers, and buy-side analysts in the United States. At least 50% of those surveyed work for investment firms with more than $50 billion in assets under management.

  I found the following diagram in the slide deck to be particularly interesting. This shows how prospective investors are thinking about investing in his 2024 IPO. Notice the balanced focus on key metrics. In other words, investors from this background want to see more than just a path to profit.

  

• 

  Tuesday, April 23, 2024, 7:09am EDT

  A brief explanation of GM’s profit explosion

  General Motors (GM) stock price has been buoyed by the company’s strong profit gains (which continue to occur because the company has been aggressively buying back shares in recent quarters and analysts have not modeled correctly) and the full year. The stock has soared nearly 5% in response to the forecast. lift.

  After the first run through the earnings deck, it’s clear that GM is a very different investment story than the currently beleaguered Tesla (TSLA). GM is cutting costs. GM has had success with new EVs. GM is doing a lot of stock buybacks.

  Tesla is lowering prices and mulling robotaxis.

  yes.

  This morning I spoke with GM’s Chief Financial Officer Paul Jacobson. He spoke upbeatly about the company’s product prices and demand for EVs. Yahoo Finance’s Pras Subramanian has everything you need to know about earnings reports here.

  Before we get into that, here’s some inside information on what GM and CEO Mary Barra has up her sleeve.

• 

  Tuesday, April 23, 2024, 6:17am EDT

  First analysis of PepsiCo’s earnings

  PepsiCo (PEP) had an interesting reaction to this morning’s earnings report.

  It’s great to see PepsiCo maintaining its 2024 sales and profit outlook, but the stock could be on the decline after quarterly sales declines in Frito-Lay North America and its North American beverage business. The company noted that while volume trends improved quarter-over-quarter, the year-over-year decline suggests shoppers are still holding back on price increases.

  PepsiCo Chairman and CEO Ramon Laguarta said he believes sales volumes will continue to increase in the coming quarters. He also doesn’t expect industry promotions to pick up steam as one way to lower prices for shoppers.