Earnings Breathe Life Into S&P | Morning Express | 12/21/2022
Posted: Dec. 21, 2022, 9:04 a.m.
Earnings
- Nike surged by more than 11% after the company crushed earnings and revenue estimates while guiding better. Retailers have faced the burden of bloated inventories, although Nike’s grew y/y, they fell q/q.
- FedEx jumped by more than 4% after beating earnings and missing revenues, as the company plans another $1 billion in cost-cutting measures, tallying $3.7 billion in 2023.
- Micron reports after the bell today. We believe this company could be the poster child for over-guiding negatively. Dynamic Random Access Memory (DRAM), used in computers and smartphones, revenues are expected to have declined significantly this year across the industry, and this is expected to carry into 2023. How much of it is discounted? Micron’s TTM multiple comes in at +7, and the company has already given a profit warning, bringing their NTM multiple to -100. The company will likely lose money in 2023. Although we don’t expect fireworks today, we expect the conversation to shift from a 2023 loss to a 2024 rebound, while 2023 may prove not to be as bad as anticipated. If you expect a soft landing in 2023, this may be a stock for you. Connect with our investment advisor arm by emailing info@bluelinecapllc.com.
Economic Calendar
- CB Consumer Confidence is due at 9:00 am CT, along with Existing Home Sales.
- EIA weekly inventory report is due at 9:30 am CT, expectations are -1.657 mb Crude, +2.14 mb Gasoline, and +0.336 mb Distillates. SPR and year-end shifts could have a big impact.
- Final Q3 GDP tomorrow and weekly Initial Jobless Claims.
Do not miss our daily Midday Market Minute, from yesterday.
E-mini S&P (March) / NQ (March)
S&P, yesterday’s close: Settled at 3849.25, up 3.75
NQ, yesterday’s close: Settled at 11,175.75, down 17.50
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NQ (March)
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Crude Oil (February)
Yesterday’s close: Settled at 76.23, up 0.85
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Gold (February) / Silver (March)
Gold, yesterday’s close: Settled at 1825.4, up 27.7
Silver, yesterday’s close: Settled at 24.271, up 1.072
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Silver (March)
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