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☆ US airline investors worry the travel boom may be coming in for a landing
▼ + stars: | 2023-10-18 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +4 min

Those concerns are battering airline stocks even as earnings reports point to a continuing consumer appetite for travel. While both United and Delta said travel demand is holding up, double-digit declines in airfares year-over-year suggest airline pricing power has peaked. United, which has not forecast profit for 2024, on Tuesday similarly said travel demand remains "strong and steady." New labor contracts as well as the higher fuel prices mean cost pressures aren't going away. American Airlines (AAL.O) and Alaska Air (ALK.N), who will report earnings Thursday, have cut their third-quarter profit estimates due to higher fuel costs.

Persons: Eduardo Munoz, Brian Mulberry, Delta, Ed Bastian, Mulberry, United, Michael Leskinen, Conor Cunningham, Rajesh Kumar Singh, Ben Klayman, Rod Nickel Organizations: United Airlines, Newark Liberty International Airport, REUTERS, Rights, NYSE, Zacks Investment Management, Delta Air Lines, United, Delta, New, American Airlines, Alaska Air, Melius, Thomson Locations: York, Newark , New Jersey, U.S, Chicago, United, Israel, Tel Aviv

REUTERS/Mario Anzuoni/File Photo Acquire Licensing RightsOct 10 (Reuters) - PepsiCo Inc (PEP.O) said on Tuesday it planned "modest" price hikes next year as demand held up despite multiple increases that prompted the snacks and beverages giant to raise its 2023 profit forecast for a third straight time. Shares of the company, which owns brands including Mirinda, and Gatorade, rose nearly 2% in early trading after third-quarter profit beat estimates. Average prices jumped 11% in the quarter ended Sept. 9, while organic volume slipped 2.5%. Adjusted profit of $2.25 per share topped expectations of $2.15, according to LSEG data. PepsiCo forecast fiscal 2023 core earnings per share of $7.54, up from $7.47 earlier, while maintaining its annual organic revenue growth forecast at 10%.

Persons: Mario Anzuoni, Hugh Johnston, Brian Mulberry, Zacks, Johnston, Ananya Mariam Rajesh, Sriraj Organizations: Pepsi, REUTERS, PepsiCo Inc, Gatorade, PepsiCo, Reuters, Zacks Investment Management, Thomson Locations: Pasadena , California, U.S, France, Bengaluru

☆ Auto companies could sacrifice stock buybacks to help pay for union demands, analyst says
▼ + stars: | 2023-10-03 | by ( Aruni Soni | ) www.businessinsider.com time to read: +4 min

Auto companies could forgo stock buybacks to pay for the costly union demands, an analyst said. Strikers have pointed out the billions of dollars companies have poured towards buybacks and dividends. Some investors have expressed willingness to sacrifice stock repurchases. Some investors seem ready to sacrifice stock buybacks. "That translates to a couple billion dollars per week of sales, $2 [billion] to $3 billion dollars, potentially.

Persons: —, Ford, Edward Jones, Jeff Windau, Brian Mulberry, Patrick Kaser, Stellantis, Patrick Anderson Organizations: Auto, Strikers, Service, Big Three, SEC, GM, Bloomberg, Stock, UAW, Zacks Investment Management, Ford, Brandywine Global, General Motors, Anderson Economic Group, Anderson Economic Locations: buybacks

☆ Supply cuts from Saudi Arabia remain price drivers for oil heading into the fourth quarter
▼ + stars: | 2023-10-02 | by ( Brian Evans | ) www.cnbc.com time to read: +6 min

Experts predict oil prices will continue to rise heading into the fourth quarter, driven by tighter supply and production cuts. Despite some profit-taking in the last week of September, crude oil prices have rallied since the summer. That means U.S. crude oil reserves will remain under pressure amid the Saudi production cuts. And questions still remain as to the strength of a resurgence from the Chinese economy and how that will support higher oil prices. Goldman also recently published its list of buy-rated stocks to play higher oil prices, which included Chevron and Baker Hughes .

Persons: Goldman Sachs, Brent, Viktor Katona, Katona, Stephen Ellis, Ellis, Ole Hansen, " Hansen, Brian Mulberry, Mulberry, Goldman, Baker Hughes, Neil Mehta, Mehta Organizations: Brent, West, West Texas, Bank of America, Chevron, ExxonMobil, Morningstar, Saxos Bank, Zacks Investment Management, Federal Reserve, ConocoPhillips, XOM Locations: West Texas, Saudi Arabia, Saudi, Russia, OPEC, U.S, Cushing , Oklahoma, East, Kuwait, Iraq, Ukraine, Iran

"We are making bold decisions to meet our commitments to our shareholders," Fraser, 56, said in a statement. The latest changes have already eliminated 35 committees, Fraser said, citing an example of efforts to reduce bureaucracy. Job cuts are expected, but the bank did not estimate the number of positions being eliminated or the financial impact, sources familiar with the matter said. "Investors are only going to give Citigroup credit for hard numbers meeting their goals," said Eric Compton, banking analyst at Morningstar. Citi is eliminating layers in former divisions Institutional Clients Group and Personal Banking and Wealth Management.

Persons: Jane Fraser, Fraser, Shahmir Khaliq, Andrew Morton, Peter Babej, Gonzalo Luchetti, Andy Sieg, Wells, JPMorgan Chase, Brian Mulberry, Eric Compton, Ernesto Cantu, Mark Mason, Tatiana Bautzer, Saeed Azhar, Medha Singh, Lananh Nguyen, Nick Zieminski, Jonathan Oatis Organizations: Citigroup, Citi, Bank of America, JPMorgan, Zacks Investment Management, Morningstar, Wealth Management, International, Thomson Locations: North America, New York

☆ Bond investors show confidence in Schwab after cost-cutting
▼ + stars: | 2023-08-23 | by ( Matt Tracy | ) www.reuters.com time to read: +3 min

The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. The announcement led to a 5% fall in Schwab shares on Tuesday but did not hurt investor appetite for its new bonds. "The strong response shows bond investors, at least in the near term, have gotten over their worries about the credit fundamentals of top-tier regional banks after the banking crisis in March," said Richard Wolff, head of U.S. syndicate at Societe Generale (SOGN.PA). Schwab's bond trade also drew attention as new investment grade bond supply this month has so far been lower than expected. Counting Schwab's $2.35 billion in bonds, investment-grade bond volume sits at just $3.45 billion for the week and $67.1 billion so far in August, according to Informa Global Markets data.

Persons: Charles Schwab, Brendan McDermid, Schwab, Richard Wolff, Dan Krieter, Brian Mulberry, David Del Vecchio, Natalie Trevithick, Matt Tracy, Nupur Anand, Shankar Ramakrishnan, Sonali Paul Organizations: REUTERS, Societe Generale, BMO Capital, Zacks Investment Management, Federal Home Loan Bank, Payden, Informa, Thomson Locations: New York, U.S, Los Angeles

☆ Nvidia hits record high as AI boom lifts bets on another strong forecast
▼ + stars: | 2023-08-22 | by ( Medha Singh | ) www.reuters.com time to read: +2 min

The shares eased 1.1% from a record high of $481.87 hit minutes after the market opened, crossing its previous peak of $480.88 on July 14. Reuters GraphicsThe company had in May forecast second-quarter revenue that was more than 50% above expectations. "To keep the stock price where it is, we would want to see bottom line start to support those share gains," said Brian Mulberry, client portfolio manager at Zacks Investment Management, which owns Nvidia shares. Nvidia shares have more than tripled in value so far this year. If Nvidia were to miss (expectations), this market would be in a world of pain," Dick said.

Persons: Ann Wang, Dennis Dick, Brian Mulberry, Goldman Sachs, Dick, Medha Singh, Amruta Khandekar, Anil D'Silva, Arun Koyyur Organizations: REUTERS, Nvidia, Wall, Triple D Trading, Reuters Graphics, Big Tech, Zacks Investment Management, Reuters, Thomson Locations: Taipei, Taiwan, Bengaluru

☆ Nvidia drops from record high, tracking market fall; AI bets support outlook
▼ + stars: | 2023-08-22 | by ( Medha Singh | ) www.reuters.com time to read: +2 min

A view of a Nvidia logo at their headquarters in Taipei, Taiwan May 31, 2023. Rising bets that Nvidia's revenue target will once again surpass Wall Street estimates have lifted the stock about 19% from a two-month low hit last week. That pushed its market capitalization above $1 trillion, making its stock the best performer on the S&P 500 index (.SPX). At least 19 brokerages have this month raised their target price on Nvidia, pushing the median view to $500, which is a 6.5% increase to the stock's last closing price. If Nvidia were to miss (expectations), this market would be in a world of pain," Dick said.

Persons: Ann Wang, Dennis Dick, Brian Mulberry, Goldman Sachs, Dick, Medha Singh, Amruta Khandekar, Gertrude Chavez, Dreyfuss, Anil D'Silva, Arun Koyyur, Lisa Shumaker Organizations: REUTERS, Nvidia, Dow, Nasdaq, Wall, Triple D Trading, Reuters Graphics, Big Tech, Zacks Investment Management, Reuters, Thomson Locations: Taipei, Taiwan, Bengaluru, Bengalaru, New York

U.S. bank shares dropped on Tuesday after ratings agency Moody's downgraded credit ratings of several U.S. regional lenders and placed some banking giants on review for potential downgrade. It warned lenders will find it harder to make money as interest rates remain high, funding costs climb and a potential recession looms. The warning caught some investors off guard. On Tuesday, SPDR S&P Regional Banking ETF's (KRE.P) options-based 30-day implied volatility rose to 31.1%, up from 28.9% touched on Monday. "In the near term, there are reasons for caution about banks in general and we have made changes where appropriate," he said.

Persons: SPDR, Steve Sosnick, There's, David Wagner, David Smith, Brian Mulberry, Michelle Price, Diane Craft Organizations: Moody's Corporation, P Bank, Regional Banking, Silicon Valley Bank, Banking, Interactive, Alert, Aptus Capital, Autonomous Research, Analysts, Zacks Investment Management, Thomson Locations: Manhattan , New York, U.S, Silicon

☆ What the stock market is saying about when to expect a recession
▼ + stars: | 2023-07-02 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

As the economy proved more resilient than expected, and the US has avoided recession so far, the case for a 2023 recession has been crumbling. The stock market, which entered bull market territory just a few weeks ago, has shown little sign this year that the economy could be headed for a downturn. Still, the bond market tells a different story: The New York Federal Reserve’s recession probability model calculates the probability that the US will enter a recession in the next 12 months by tracking the spread of 3-month and 10-year Treasury yields. US stock market closes early at 1 p.m. Tuesday: US stock market closed for July Fourth.

Persons: Brian Moynihan, “ We’re, ”, David Grecsek, Jerome Powell, it’s, “ we’re, Russell, Outflows, Brian Mulberry, Tim Courtney, Courtney ., “, Niño, Samantha Delouya, El Organizations: CNN Business, Bell, New York CNN —, Federal Reserve, Bank of America, CNN, Vanguard, JPMorgan Chase, Investors, Fed, Investment Company Institute, Zacks Investment Management, New, Federal Reserve Bank of San, Exencial Wealth, Oceanic, Atmospheric Administration, NOAA, PMI, Labor Locations: New York, Federal Reserve Bank of San Francisco, El

☆ Chevron tops estimates with first-quarter profit gain despite slide in oil prices
▼ + stars: | 2023-04-28 | by ( ) www.cnbc.com time to read: +2 min

Oil major Chevron beat market expectations on Friday as profit nudged higher in the first quarter, with earnings from refining compensating for a slide in energy prices and in oil and gas production. Net profit climbed 5% to $6.57 billion or $3.46 per share. That compares with a Wall Street consensus for flat profit at $3.38 per share, according to figures compiled by Zacks Investment Research. The company's standout business was oil refining, where higher margins helped income surge more than five-fold to $1.8 billion. But its oil and gas production division saw its net profit tumble 25% on a big year-over-year decline in prices.

☆ Chevron tops estimates with Q1 profit gain despite slide in oil prices
▼ + stars: | 2023-04-28 | by ( Sabrina Valle | ) www.reuters.com time to read: +2 min

HOUSTON, April 28 (Reuters) - Oil major Chevron Corp (CVX.N) beat market expectations on Friday as profit nudged higher in the first-quarter, with earnings from refining compensating for a slide in energy prices and in oil and gas production. Net profit climbed 5% to $6.57 billion or $3.46 per share. That compares with a Wall Street consensus for flat profit at $3.38 per share, according to figures compiled by Zacks Investment Research. The company's standout business was oil refining, where higher margins helped income surge more than five-fold to $1.8 billion. But its oil and gas production division saw its net profit tumble 25% on a big year-over-year declines in prices.

☆ Alphabet, Meta lure back advertisers as smaller rivals expected to struggle
▼ + stars: | 2023-04-27 | by ( Sheila Dang | ) www.reuters.com time to read: +3 min

This year, though, the social media ad market is expected to grow at a slightly faster pace than in 2022, according to a report last month from media and intelligence firm MAGNA. "Advertisers are simply going back to platforms they know, like and trust," said Brian Mulberry, a portfolio manager at Zacks Investment Management. The social media advertising market overall is expected to grow 6% this year to $66 billion, according to MAGNA. Last year, the social media ad market grew 2% in part because privacy updates by Apple Inc (AAPL.O) made it more difficult for advertisers to gather user data to serve targeted ads. Digital pinboard company Pinterest is expected to post a 3% year-over-year rise in quarterly revenue on Thursday, according to Refinitiv data.

☆ Tesla bulls and bears are duking it out and one strategist now thinks Elon Musk's car company is "boring"
▼ + stars: | 2023-03-03 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

The presentation did, however, lay out broad plans aimed at making Tesla the largest car company in the world. The announcements were tepid enough that strategists at Vanda Research wrote in a note to clients that this month could see a sell-off for Tesla stock. That said, Zacks Investment Research forecasts 30% upside for Tesla, and that climb could happen in 2023. While Tesla has long been touted as innovative and futuristic over the last decade, Bespoke Investment Group concluded that the company is now actually a normal, boring car maker. The stock market is getting the jitters with a key bearish signal flashing red again.

☆ Tesla stock could spike nearly 30% over the next year with aid from its coming Cybertruck, equity strategy chief says
▼ + stars: | 2023-03-02 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Tesla shares are likely to rise by nearly 30% to $260 in the next six to 12 months, says Zacks. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. "I think that's doable," John Blank, chief equity strategist at Zacks, told CNBC's "Squawk Box Europe" on Thursday. I think $260 is where we're headed." And I think that's the real message we should hear about this whole Cybertruck," the strategist said.

☆ VIEW U.S. consumer prices fall in December
▼ + stars: | 2023-01-12 | by ( ) www.reuters.com time to read: +5 min

NEW YORK, Jan 12 (Reuters) - U.S consumer prices unexpectedly fell for the first time in more than 2-1/2 years in December amid declining prices for gasoline and other goods, suggesting that inflation was now on a sustained downward trend. The consumer price index dipped 0.1% last month after gaining 0.1% in November, the Labor Department said on Thursday. MARKET REACTION:STOCKS: U.S. stock index futures fall after the inflation data BONDS: U.S. Treasury yields slid across the board. But I will note that it is an especially volatile period, which is not atypical for inflection points in market expectations and the broader macro outlook." BRIAN KLIMKE, INVESTMENT DIRECTOR, CETERA INVESTMENT MANAGEMENT LLC, LOS ANGELES"It (the report) came in as expected, but investors were somewhat optimistic leading into this reading, so that they were buying the rumor and selling the new.

☆ Instant View: U.S. consumer prices fall in December
▼ + stars: | 2023-01-12 | by ( ) www.reuters.com time to read: +5 min

NEW YORK, Jan 12 (Reuters) - U.S consumer prices unexpectedly fell for the first time in more than 2-1/2 years in December amid declining prices for gasoline and other goods, suggesting that inflation was now on a sustained downward trend. The consumer price index dipped 0.1% last month after gaining 0.1% in November, the Labor Department said on Thursday. MARKET REACTION:STOCKS: U.S. stock index futures fall after the inflation dataBONDS: U.S. Treasury yields slid across the board.FOREX: The dollar fell against the euro and yen. But I will note that it is an especially volatile period, which is not atypical for inflection points in market expectations and the broader macro outlook." BRIAN KLIMKE, INVESTMENT DIRECTOR, CETERA INVESTMENT MANAGEMENT LLC, LOS ANGELES"It (the report) came in as expected, but investors were somewhat optimistic leading into this reading, so that they were buying the rumor and selling the new.

☆ Retail investors turn to ETFs as recession fears knock down meme stocks
▼ + stars: | 2022-12-16 | by ( Medha Singh | ) www.reuters.com time to read: +4 min

Dec 16 (Reuters) - Retail investors are doubling down on Exchange Traded Funds (ETFs) as rising interest rates and volatile markets curb their appetite for risky assets such as meme stocks, SPACs and cryptocurrencies. On average, retail investors' portfolios are down about 39% in 2022 after recording gains of 18% in 2021, JPMorgan analysts Peng Cheng and Emma Wu said. The investment trend, however, is leaning more toward ETFs tracking broader markets and away from the meme stock frenzy of 2021 that saw retail investors banding together on social media forums to fuel eye-popping gains in GameStop (GME.N), AMC (AMC.N) and others. Retail investors' average daily trading volume in U.S. stocks has amounted to $13.8 billion so far in 2022, compared with $14.2 billion a year earlier, which was the peak of meme stock trading frenzy, according to the report. Meanwhile, the U.S. Securities and Exchange Commission on Wednesday voted to propose some of the biggest changes to American equity market structure in nearly two decades, aimed at boosting transparency and fairness while increasing competition for individual investors' stock orders.

☆ Zacks Executive Put Earnings Estimates at Investors’ Fingertips
▼ + stars: | 2022-12-09 | by ( Bob Tita | ) www.wsj.com time to read: 1 min

Benjamin Zacks and his brother started a financial-data firm that would help change the way the stock market evaluates public companies. Mr. Zacks and his older brother, Len, collected Wall Street analysts’ predictions for companies’ quarterly profits and distilled them into consensus estimates. Zacks Investment Research Inc., the company they started, said it was the first in the U.S. to distribute the quarterly consensus estimates to investors in the early 1980s, though another company had earlier started compiling estimates for companies’ annual income. Zacks’ calculations for per-share profits or losses gave investors a handy comparison to actual results and provided a catalyst for stocks to rise or fall in the aftermath of quarterly results.

☆ Buffett may have invested in TSMC too early, analyst says, predicting the best time to buy
▼ + stars: | 2022-11-15 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Legendary investor Warren Buffett may have overpaid for his latest investment in chipmaker Taiwan Semiconductor , according to one equity analyst. Buffett's Berkshire Hathaway bought more than 60 million shares of TSMC worth $4.1 billion (1.2% of TSM) in the third quarter, according to a quarterly regulatory filing . New York-listed shares in the chip stock rose 5.8% in after-hours trading to $77.08. Blank said Buffett, 92, was not as interested in buying the bottom as other investors, given Berkshire Hathaway's long-term investment horizon. The median price target of 30 analysts covering TSMC indicates a 29.8% potential upside from its share price prior to Buffett's investment, according to FactSet.

Amid persistent inflation, investors have been nervously eyeing how consumer spending pans out during the crucial holiday season, when retailers make more than a third of their annual profits. The world's largest retailer by sales forecast holiday quarter U.S. same-store sales, excluding fuel, to increase about 3%, below estimates of a 3.4% increase. The company's comments follow those of FedEx and Amazon, which have also warned of muted holiday season demand in recent weeks. Home improvement chain Home Depot (HD.N) on Tuesday left its annual forecasts unchanged, adding to holiday season concerns amid a slowing housing market. read moreFor the full-year, Walmart forecast net sales to rise 5.5%, above its previous forecast of a 4.5% increase.

☆ Wall Street's biggest banks say Amazon is still a screaming 'buy' despite its ugly earnings results. Here's why, and where they see future growth coming from.
▼ + stars: | 2022-10-31 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

The company's share price has dropped by more than 15% since then. Amazon's third-quarter earnings disappointed investors on Thursday, sending the company's stock into a tailspin. What's Wall Street saying? Outcry over grueling and unsafe working conditions from employees has not tipped the scale for shareholders or Wall Street analysts. His firm holds Amazon stock.

☆ Exxon Mobil shares surge to record intraday high
▼ + stars: | 2022-10-21 | by ( Sabrina Valle | ) www.reuters.com time to read: +3 min

HOUSTON, Oct 21 (Reuters) - Exxon Mobil Corp (XOM.N) shares passed their all-time high on Friday as oil prices resumed their climb and analysts raised their long-term views of top U.S. oil producer's cash flow and earnings outlook. The stock hit $105.95 early Friday, above the prior record high close of $104.59 from June 8. The strategy paid this year as an international oil supply crunch accelerated by sanctions against Russia made oil prices hit 14-highs. Oil profits allowed the company to erase the $21 billion it borrowed in 2020 to pay its bills and keep dividend distributions intact. Gas prices are rose to multi-year highs on European demand.

☆ Exxon shares surge to record high on strong earnings outlook
▼ + stars: | 2022-10-21 | by ( Sabrina Valle | ) www.reuters.com time to read: +3 min

HOUSTON, Oct 21 (Reuters) - Exxon Mobil Corp (XOM.N) shares passed their all-time high on Friday as oil prices resumed their climb and analysts raised their long-term views of top U.S. oil producer's cash flow and earnings outlook. The stock hit $106.40 on Friday before closing at $105.86, above the prior record high close of $104.59 from June 8. The strategy paid this year as an international oil supply crunch accelerated by sanctions against Russia made oil prices hit 14-highs. For a time, utility operator NextEra Energy overtook Exxon as the U.S. energy company with the largest market cap. The year's profits are largely from high energy prices.

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