3rd quarter earnings seasons has gone a bit sour. A handful of high-profile companies fell short of expectations. Which can be considered a transparent sign of economic weakness. Notable misses this week came from McDonalds, Texas Instruments, Caterpillar, Boeing, Twitter, AB InBev, and Amazon. This is the first time in 2 years that Amazon has missed earnings.
Investors should pay attention when a string of blue-chip stocks all miss earnings. It could mean the beginning of a serious slowdown. At least in a market based on logic..
- Earnings per share: $2.11 vs. $2.21 expected
- Revenue: $5.4 billion vs. $5.5 billion expected
- Global same-store sales: 5.9% vs. 5.6% expected
Texas Instruments ($TXN)
- $1.49 a share on sales of $3.77 billion in the September quarter. Analysts expected TI earnings of $1.41 a share on $3.81 billion in sales, according to Zacks Investment Research.
- Earned $2.66 per share in the third quarter, versus the consensus estimate of $2.88 per share, according to Refinitiv. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion.
- Revenue: $20 billion vs. $19.65 billion expected
- Adj. earnings per share:$1.45 vs. $2.17 expected
- Reported earnings of 17 cents per share on revenue of $824 million. Wall Street expected earnings of 20 cents on revenue of $874 million.
AB InBev ($BUD)
- Reported revenue of $13.2b vs. $13.4b expected
- Reported earnings per share $4.23 vs $4.62 expected
- Predicted less than expected earnings for the holiday season, around $80-$86.5 billion. Analysts expected $87 billion plus.
Despite High-Profile Earnings Misses the Market Rallies On
The S&P 500 hit a new all-time high today thanks to trade deal and consumer sentiment optimism.
Consumers are still consuming and hopes of a trade deal are still alive. The broken record continues to play.
While the market is reaching new highs, it’s not breaking out in a bullish manner. Just slowly drifting a bit higher.
Tesla Popped 16.5% Higher on Thursday
The company reported a quarterly profit sending shock waves to analysts that were expecting another loss. The short sellers betting against Telsa ($TSLA) lost more than $1 billion in a single day.
The U.S. Budget Deficit Largest Since 2012
The U.S. government ended the fiscal year 2019 with the largest budget deficit in seven years as gains in tax receipts were offset by higher spending and growing debt service payments, the Treasury department said on Friday.
Bitcoin is Doing Bitcoin Things
Earlier this week the popular cryptocurrency dropped off a cliff and fell over 10% to $7,300. Not too long after it broke back upward over 15% resulting in a huge short squeeze.
Wall Street Weekly Performance
S&P 500 $SPY +1.28%.
NASDAQ $QQQ +1.96%
Emerging Markets $EEM +1.66%
Long Term Treasuries $TLT -0.74%
This Week’s Top Gainers
Trovagene $TROV +92.38%
Xunlei Ltd $XNET +88.61%
Cellect Bio $APOP +41.29%
This Week’s Top Losers
Resideo Technologies $REZI -36.37%
Brickel Biotech $BBI -35.83%
Pacific Gas & Electric $PCG -35.10%
MEME of the Week
What Else Is Happening
- Walmart, CVS, and Rite Aid Pull Johnson and Johnson baby powder from shelves after FDA finds traces of asbestos.
- GM workers appear set to approve contract and end strike.
- Massachusetts sues Exxon Mobil over Climate Change.
- A $48 Billion nationwide opioid settlement is in talks after a $260 million settlement for Ohio was reached early this week.
- The Fed is expected to cut interest rates again next week.
- The U.S. and China are close to finalizing parts of the phase 1 trade deal.
- A PG&E transmission tower broke near the origin of the Kincade Fire in California.