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Stock Market Today: Dow Jones, S&P 500 Ticked Higher Ahead Of Fed Decision; AMD Stock Up On Solid Earnings

Markets open higher as investors eagerly await the Federal Reserve’s latest monetary policy decision
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Stock Market Today Mid-Morning Updates

On Wednesday, the Dow Jones Industrial Average is up by 30 points as investors brace for the Fed’s decision on its monetary policy later in the afternoon. The Fed has taken a more hawkish position in recent months against rising inflation and a tightened U.S. labor market. Coupled with global supply chain woes and the Russia-Ukraine war, the central bank certainly has a lot on its plate right now. The European Union today proposed a gradual ban on Russian oil in its sixth round of sanctions. Russia’s unprovoked invasion and evidence of war crimes have further pushed the EU to take bolder steps against Moscow.

Shares of Airbnb (NASDAQ: ABNB) are up today by over 4% after reporting a revenue beat of $1.5 billion. Impressively, this was 80% higher than Q1 2019, at pre-pandemic levels. The company also reported a narrower than expected loss of $0.03 per share against consensus estimates of $0.29 per share. Livent Corporation (NYSE: LTHM) is up by over 20% today after posting better-than-expected earnings. The lithium technology company also raised its 2022 revenue forecast.

Among the Dow Jones leaders, shares of Apple are up by 0.54% today while Microsoft (NASDAQ: MSFT) is up by 0.68%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.23% while JPMorgan Chase (NYSE: JPM) is also up by 0.16%.

Shares of EV leader Tesla (NASDAQ: TSLA) are up by 0.24% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are down by 2.31%. Lucid Group (NASDAQ: LCID) is also down by 3.21% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading lower today. 

Dow Jones Today: U.S. Treasury Yields Steady Ahead Of Fed Decision

Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading higher at 0.10%, 0.10%, and 0.02%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.07% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.09%. 

The benchmark 10-year U.S. Treasury yield trades at 2.96% today ahead of the Federal Reserve interest rate decision later in the day. Many analysts expect the central bank to hike interest rates by half a percentage point. They also believe that the Fed’s aggressive tightening of monetary policy could end in a recession. The Federal Open Market Committee will release its policy decision statement at 2:00 p.m. ET on Wednesday. Fed Chair Jerome Powell is scheduled to hold a press conference at 2:30 p.m. ET.

Private Payrolls Increased In April, But Are Well Below Estimates

On Wednesday, payrolls processing firm ADP reports that companies added fewer jobs than expected. Companies continue to struggle to find workers to fill open positions. Diving in, private payrolls increased by 247,000 in the month of April, below the 390,000 Dow Jones estimate. A chunk of this came from a drop in small business hirings, where companies with fewer than 50 workers saw a decline of 120,000.

[Read More] Top Stock Market News For Today May 3, 2022 

AMD Stock Gains After Blowout Earnings And Sizable Guidance Lift

In the news today, we have AMD (NASDAQ: AMD) with its eye-opening earnings. Following yesterday’s market close, the semiconductor chip titan posted stellar figures across the board. Getting straight to it, AMD is sitting on earnings of $1.13 per share on revenue of $5.89 billion for the quarter. To put things into perspective, this is versus Wall Street forecasts of $0.91 and $5.52 billion respectively. Year-over-year, this translates to sizable jumps of over 117% and 71%. In fact, AMD’s latest quarterly revenue also marks a new all-time high for the company as well.

Going into the specifics, the company is experiencing broad-based strength across its core business divisions. Notably, the company’s Enterprise, Embedded, and Semi-Custom segment saw its total revenue soar by 88% year-over-year to $2.5 billion. At the same time, AMD’s Computing and Graphics business raked in total sales of $2.8 billion, a 33% increase year-over-year. While all this is great, AMD is also issuing strong guidance for the current quarter and fiscal year ahead. For its second fiscal quarter, the company is expecting revenue of between $6.3 billion to $6.7 billion. To compare, consensus expectations are currently at around the $6.38 billion mark. 

In terms of its fiscal year outlook, AMD is raising its full-year revenue target to $26.3 billion, a massive 60% year-over-year increase. Accordingly, this would mark a notable increase over its previous guidance of a 31% increase. According to CEO Dr. Lisa Su, AMD has and continues to see significant strength across its core business and demand remains strong for its leadership products. As a result, AMD stock is now up by over 4% at today’s market open.

AMD stock
Source: TradingView

[Read More] 4 Top Oil Stocks To Watch In The Stock Market Today

Moderna In Focus After Tripling Covid Sales And Topping Quarterly Earnings Estimates

Meanwhile, coronavirus vaccine developer Moderna (NASDAQ: MRNA) is also turning heads after its latest quarterly earnings update. Overall, the company is looking at earnings of $8.58 per share on revenue of $6.07 billion for the quarter. For reference, this is against Wall Street estimates of $5.21 and $4.62 billion respectively. Namely, a key highlight from Moderna would be its latest vaccine sales figures. The company raked in a whopping $1.7 billion from vaccine sales, more than triple year-over-year. In fact, Moderna’s net income of $3.66 billion also marks a similar year-over-year surge from $1.2 billion.

All in all, it seems that Moderna remains hard at work in its fight against the coronavirus pandemic. Looking forward, the company is maintaining its $21 billion full-year guidance for vaccine sales. On top of that, CEO Stephane Bancel also expects orders for Moderna’s shot to increase in the second half of the year. Bancel argues that governments will likely do so amidst efforts to fortify fall vaccination campaigns. Not to mention, Moderna also recently initiated an FDA application for the use of its vaccine in children aged 6 months to 5 years old. 

MRNA stock
Source: TradingView

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The post Stock Market Today: Dow Jones, S&P 500 Ticked Higher Ahead Of Fed Decision; AMD Stock Up On Solid Earnings appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

Expert on Bath & Body Works: ‘an easy double the next three years’

Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says…

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Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says the Senior Vice President and Portfolio Manager at Westwood Group.

BBWI separated from Victoria’s Secret

The retail chain separated from Victoria’s Secret in 2021, which, as per Lauren Hill, clears the way for a 100% increase in the stock price in the coming years. On CNBC’s “Closing Bell: Overtime”, she said:

[Bath & Body Works] has really strong pricing power. They have 85% of their supply chain in the United States and with the Victoria’s Secret brand now gone, I think it’s a wonderful buy; an easy double the next three years.

Last month, the Columbus-headquartered company reported results for its fiscal first quarter that topped Wall Street expectations.

Bath & Body Works is a reopening play

The stock currently trades at a PE multiple of 6.64. Hill is convinced Bath & Body works is a reopening name and will perform so much better as the world continues to pull out of the pandemic. She noted:

Customers have missed buying their scented products in store and as their social occasion calendars fill up, they are getting back out there and buying more gifts, including Bath & Body Works products.

Hill also dubbed BBWI a great pick amidst the ongoing inflationary pressures because of its reasonably priced products. Shares are down more than 50% versus the start of 2022.

The post Expert on Bath & Body Works: ‘an easy double the next three years’ appeared first on Invezz.

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Economics

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A…

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Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A majority of C-suite executives are considering leaving their jobs, according to a Deloitte survey of 2,100 employees and C-level executives from the United States, Canada, the UK, and Australia.

Almost 70 percent of executives admitted that they are seriously thinking of quitting their jobs for a better opportunity that supports their well-being, according to the survey report published on June 22. Over three-quarters of executives said that the COVID-19 pandemic had negatively affected their well-being.

Roughly one in three employees and C-suite executives admitted to constantly struggling with poor mental health and fatigue. While 41 percent of executives “always” or “often” felt stressed, 40 percent were overwhelmed, 36 percent were exhausted, 30 percent felt lonely, and 26 percent were depressed.

“Most employees (83 percent) and executives (74 percent) say they’re facing obstacles when it comes to achieving their well-being goals—and these are largely tied to their job,” the report says. “In fact, the top two hurdles that people cited were a heavy workload or stressful job (30 percent), and not having enough time because of long work hours (27 percent).”

While 70 percent of C-suite execs admitted to considering quitting, this number was at only 57 percent among other employees. The report speculated that a reason for such a wide gap might be the fact that top-level executives are often in a “stronger financial position,” due to which they can afford to seek new career opportunities.

Interestingly, while only 56 percent of employees think their company executives care about their well-being, a much higher 91 percent of C-suite administrators were of the opinion that their employees believe their leaders took care of them. The report called this a “notable gap.”

Resignation Rates

The Deloitte report comes amid a debate about resignation rates in the U.S. workforce. Over 4.4 million Americans quit their jobs in April, with job openings hitting 11.9 million, according to the U.S. Department of Labor. In the period from January 2021 to February 2022, almost 57 million Americans left their jobs.

Though some are terming it the “Great Resignation,” giving it a negative connotation, the implication is not entirely true since most of those who quit jobs did so for other opportunities. In the same 14 months, almost 89 million people were hired. There are almost two jobs open for every unemployed person in the United States, according to MarketWatch.

In an Economic Letter from the Federal Reserve Bank of San Francisco published in April, economics professor Bart Hobijn points out that high waves of resignations were common during rapid economic recoveries in the postwar period prior to 2000.

“The quits waves in manufacturing in 1948, 1951, 1953, 1966, 1969, and 1973 are of the same order of magnitude as the current wave,” he wrote. “All of these waves coincide with periods when payroll employment grew very fast, both in the manufacturing sector and the total nonfarm sector.”

Tyler Durden Sat, 06/25/2022 - 20:30

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Spread & Containment

Optimism Slowly Returns To The Tourism Sector

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn’t much of an improvement, as travel…

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Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn't much of an improvement, as travel remained subdued in the face of the persistent threat posed by Covid-19.

According to the United Nations World Tourism Organization (UNWTO), export revenues from tourism (including passenger transport receipts) remained more than $1 trillion below pre-pandemic levels in 2021, marking the second trillion-dollar loss for the tourism industry in as many years.

As Statista's Felix Richter details below, while the brief rebound in the summer months of 2020 had fueled hopes of a quick recovery for the tourism sector, those hopes were dashed with each subsequent wave of the pandemic.

And despite a record-breaking global vaccine rollout, travel experts struggled to stay optimistic in 2021, as governments kept many restrictions in place in their effort to curb the spread of new, potentially more dangerous variants of the coronavirus.

Halfway through 2022, optimism has returned to the industry, however, as travel demand is ticking up in many regions.

You will find more infographics at Statista

According to UNWTO's latest Tourism Barometer, industry experts are now considerably more confident than they were at the beginning of the year, with 48 percent of expert panel participants expecting a full recovery of the tourism sector in 2023, up from just 32 percent in January. 44 percent of surveyed industry insiders still think it'll take until 2024 or longer for tourism to return to pre-pandemic levels, another notable improvement from 64 percent in January.

Tyler Durden Sat, 06/25/2022 - 21:00

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