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Within the portfolio, we'll get the latest earnings from Danaher (DHR), Halliburton (HAL), and Johnson & Johnson (JNJ) on Tuesday before the opening bell. While the results will be important as always, we are most interested in the earnings call with analysts and investors. Housing Starts fell 1.4% in December to a seasonally adjusted annual rate of 1.38 million, slightly above the 1.36 million expected. Building permits dropped 1.6% in December to a seasonally adjusted annual rate of 1.33 million, below expectations of 1.37 million. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
After what happened with bank stocks Monday, investor attention is going to shift to the Goldman Sachs US Financial Services Conference that opens today. Regional bank stocks tend to move with the S & P, so that is a very big selloff, and volumes were elevated as well. Others think investors are simply catching up with the "higher for longer" interest rate environment. You hear 'recession' and you sell bank stocks," Wells Fargo's long-time bank analyst Mike Mayo said on CNBC yesterday. "If we are entering a slower growth economy, will banks have to put aside more money for loans going bad?," Siefers told me.
Investors stuck to crypto startups they considered "safe bets," but FTX's failure challenges that idea. Crypto startups held yacht parties through the summer and into early fall at events such as NFT.NYC and Messari Mainnet. "The whole crypto space is a high-leverage space, and it's susceptible to cascading failures." The events of the past week are unlikely to whet risk-averse LPs' appetite for crypto, investors told Insider. Even so, several investors who have backed crypto startups told Insider that despite the industry's recent travails, they remain believers in the technology.
Cadence Design Systems - Shares of the software firm rose 1.6% after raising its full-year earnings per share guidance and posting a top and bottom line beat for the recent quarter. Cadence Design Systems posted earnings of $1.06 a share, beating an estimate of 96 cents, according to StreetAccount. Qualtrics — Qualtrics' stock surged 9.9% after the company beat analysts' expectations on the top and bottom lines for the recent quarter and raised its guidance. Packaging Corp of America — Shares slipped 2.7% in extended trading after revenue for the recent quarter failed to meet Wall Street's estimates. W.R. Berkley Corp — The insurance company's stock shed 5% after it reported a decline in net income and earnings per share year over year.
Stocks rallied this week as earnings season ramped up and is so far off to a better-than-expected start. With 20% of the S & P 500 having reported financials so far, sales results have thus far been 1.4% above expectations while earnings results are 5.4% above expectations, in aggregate. That inverse correlation between bond yields and stocks was powerful enough to trump positive earnings reports. Looking back On the earnings front, we got results from Johnson & Johnson (JNJ), Procter & Gamble (PG), and Danaher (DHR). As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
The three major averages closed higher Friday, with the S & P 500 adding 2.37% to close at 3,752.75. Stovall said the S & P 500 had six positive moves of 1% or more in the last 17 trading days, as of Friday. Earnings, earnings, earnings About 150 S & P 500 companies report earnings in the coming week. Technically speaking Scott Redler, partner with T3Live.com, said he is watching a formation in the S & P 500 that could be positive. His first target for the S & P 500 is 3,800.
That can create an opportunity for options investors, according to Goldman Sachs. "Among stocks, options in CMA , ZION and STT screen as most attractive relative to historical one-day moves on FOMC days," the note said. Here's a look at some of the bank stocks on Goldman's list and their average moves on Fed decision days in recent years, led by Comerica. The options market was pricing in lower-than-average volatility in these stocks, creating an opportunity for investors, Goldman said. Bank stocks can be particularly sensitive to Fed decisions because their business models are closely tied to interest rates and the state of the economy.
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