The Dow Jones Industrial Average looks to be lower today before the Fed announced today. In today’s morning paper, we…
• Looking ahead to the start of the first quarter earnings season;
•… Emphasizes the end of Federal Express (FDX) revenue and the privatization efforts of JD;
• Focus on General Electric (GE) yesterday hit a new 52-week low.
Remember the morning market gains? They have become losses, but only because investors wait for the Federal Reserve to raise interest rates by a quarter later in the day.
This is your move, Fed President Jerome Powell.
It is almost certain that everyone seems to be wondering whether the Fed will change its forecast to reflect the four interest rate increases in 2018 instead of three. But Peter Buckwar, chief investment officer at Blakely Consulting Group, called this obsession “insignificant,” because the Fed will rely on this data, and many things will happen in a matter of months. He also pointed out that the market has not waited for the Fed to speak: Libor has risen by 0.5% so far this year.
However, after today, the Fed will enter the rearview mirror and focus on turning to profit in the first quarter. Nicholas Colas, co-founder of DataTrek Research, said that Facebook’s (FB) dilemma may stifle investors’ enthusiasm for technology, but this area is still growing. He pointed out that technology should grow by 14% in the first quarter and it is the best among non-cyclical organizations. “Since the current market’s rise in technology seems to be in trouble, growth investors have no choice but to weather the fluctuations,” he explained.
I hope you enjoy the roller coaster.
S&P 500 Index Futures: -0.1%:
Dow futures: -37 points or 0.2%
Nasdaq Composite Index: -0.4%
After Citigroup upgraded to neutral buying, Children’s Place (PLCE) rose 2.6% to $131.25.
After reporting third-quarter earnings, FedEx Express (FDX) fell 0.8% to $250. The delivery giant earned $3.72 per share, with revenue of $16.53 billion. Analysts estimated earnings per share of $3.12 and revenue of $16.17 billion. The company said it expects earnings per share to be between $15 and $15.40, higher than the previous $12.70 to $13.30, and $13.63. On the company’s conference call, FedEx has cut its $100 million capital expenditure guidelines and raised the US economic outlook to 3% from the previous year’s 2%. Considering the expenses and the threat of Amazon.com (AMZN), the United States United Parcel Service (UPS) last month’s earnings pressure, investors paid close attention to the quarter. Stifel also upgraded the stock to buy today.
After reporting its third-quarter earnings, General Mills (GIS) fell 9.3% to $43.50. The packaged food company said that it earned 79 cents a share on revenue of $3.88 billion, while analysts forecast a profit of 78 cents a share on revenue of $3.87 billion. However, investors were frightened by their weak guidance because they expected full-year earnings of $3.08 to $3.11, which is lower than the consensus of $3.17 per share. The stock has suffered losses this year as investors worry about the price and strategy of the Blue Buffalo Pet Supplies (BUFF) acquisition. Wells Fargo analyst John Baumgartner wrote: “The results and guidelines of the FQ3 are disappointing, as the New York meeting consumer analyst team discussed resistance.
After the Bank of America Merrill Lynch upgraded the stock to buy, Kinder Morgan (KMI) rose 1.4% to $15.83.
After the board member special committee concluded its discussions with the Northrop Family, Nordstrom (JWN) fell 2.8% to $48.
Salesforce.com (CRM) announced its $6.5 billion in cash and stock transactions after it announced its acquisition of cloud computing tool maker Mulesoft (MULE) at a price of US$44.90 per share, announcing its stock price to fall by 3.4% to US$120.89. This news is not surprising because there have been reports that potential acquisitions have been circulating on Thursday.
Shares of Southwest Airlines (LUV) fell 4.7% to US$57.83, after cutting its unit revenue guidance.
After the second-quarter earnings report, Winnebago (WGO) fell 1.1% to $43.50. The RV manufacturer said that the company’s earnings per share was 62 cents and revenue was 468.4 million US dollars, while analysts expected the gain to be 63 cents and revenue was 4.5588 trillion US dollars.
Wynn Resorts (WYNN) fell 1.2% to $181.95 after former ex-wife Elaine Wynn of former president Steve Wynn confirmed that she owns a 9.26% stake in the company. The previous shareholder agreement is no longer binding and she may be linked to the casino operator. have a discussion. According to the revised 13D document, Steve Wynn also stated that he plans to sell some or all of the shares. Earlier this month, Wynn had a lawsuit with multiple parties, and the stock has recovered after Steve Wynn’s allegations of misconduct at the beginning of the year led him to step down. – Teresa Rivas
Stay tuned… General Electric
Yesterday, GE reached a new low of 52 weeks, and it does not need any bad news or even a week’s market to do it.
Morning Express: Southwest Meeting, General Mills Tank, FedEx Drops
Despite the lack of catalysts, the fact that GE continues to decline shows that investor sentiment has not changed. It is called a value trap by Tigress Financial’s Ivan Feinseth and now looks more and more like this. For Andrew Barry’s cover story on GE, we got some responses and it claims that there is hardly any like for the company. But this still seems to be the case.
General Electric shares rose 0.2% to a pre-market trading of $13.67.