Stocks sell off; TSMC, ASML, Netflix, Tesla in focus: Weekly review

Stocks sell off; TSMC, ASML, Netflix, Tesla in focus: Weekly review

The stock market continued to slide, with all major stock indexes falling further below their 50-day moving averages. ASML (ASML) and British Semiconductor (TSM) issued cautious remarks, slamming chip stocks. Netflix (NFLX) fell on weak guidance. Tesla Tesla ( TSLA ) shares are tumbling ahead of its upcoming earnings amid massive layoffs and huge questions about its strategy. United Airlines (UAL) earnings surge.


Stock market plummets

The market has taken a beating, with all major indexes trading well below their 50-day moving averages. Once-leading chip stocks were sold off by ASML and Taiwan Semiconductor. Crude prices fell even as Iran launched a strike. U.S. Treasury yields jumped to new 2024 highs, but are certainly off their highs. U.S. Treasury yields jumped to five-month highs but gave up gains. Crude oil prices fell.

Retail sales, Powell delays rate cut

Strong retail sales showed consumer spending has staying power. Sales rose 0.7% in March, beating expectations of 0.4%, while February’s growth was revised up to 0.9% from 0.6%. Excluding automobiles and natural gas, sales rose 1%, with February sales also rising. Fed Chairman Jerome Powell no longer thinks inflation is trending downward. The sales data and Powell’s comments pushed expectations for a first rate cut to September. Meanwhile, housing starts fell 15% in March, but permits fell a more modest 4.3%. Initial jobless claims remained at a low level of 212,000, with no signs of weakness in labor market sales. The Philadelphia Fed manufacturing index unexpectedly jumped to a two-year high, as the once lagging factory sector gained momentum.

Chip stocks fall on weak outlook

ASML (ASML) and British Semiconductor (TSMC) triggered a sell-off in the chip industry. Chip equipment leader ASML reported mixed first-quarter results, while contract chipmaker TSMC posted a report that beat expectations. But both companies have made cautious comments about the coming months. ASML missed its first-quarter sales target and guided for the current quarter below expectations, but its profit beat expectations. TSMC said sales of artificial intelligence chips will help offset weak chip sales in smartphones and other markets. It also slightly lowered its industry growth forecast for this year while maintaining its company growth target.

Intuitive Surgery Top Key Metrics

intuitive surgery On Thursday night, ISRG beat first-quarter expectations, with adjusted earnings per share rising 22% and revenue rising 11% to $1.89 billion. Notably, the number of surgeries performed using Intuitive’s bread robot Da Vinci surged 16%. The company is launching its next-generation system, da Vinci 5.

Tesla plunges on layoffs, growth concerns

Tesla Tesla ( TSLA ) shares fell to a 52-week low as evidence mounts that $25,000 electric cars will be delayed by several years, raising serious questions about growth momentum. CEO Musk has made it clear that he is focused almost entirely on autonomous driving. Tesla will cut more than 10% of its global workforce, or more than 14,000 jobs, and some key executives will leave. Tesla, meanwhile, is asking shareholders to approve Musk’s $55 billion compensation plan for 2018, despite a Delaware court invalidating the plan earlier this year. Tesla recalled Cybertruck vehicles on Friday to fix a faulty accelerator pedal.

Netflix disappoints second-quarter earnings guidance

Netflix (NFLX) beat Wall Street targets in the first quarter, but its second-quarter sales outlook fell short of expectations. Netflix added 9.33 million new subscribers in the March quarter, beating estimates of 5.48 million. As of the end of the quarter, total global subscribers were 269.6 million. Netflix’s profit increased by 83%, and revenue increased by 15%, reaching $9.37 billion. For the quarter, Netflix’s EPS guidance rose, but revenue fell slightly. The streaming leader also said it would stop reporting subscriber numbers and average revenue per member starting in the first quarter of 2025, also unnerving investors.

United Airlines, Boeing profits soar

United Airlines (UAL) reported a smaller-than-expected loss, while revenue rose 10% to $12.54 billion, slightly above expectations.Airline loses $200 million this quarter boeing company (BA) 737 Max 9 Ground. United said it had reached a confidential compensation agreement with Boeing for financial losses. But the airline expects fewer aircraft deliveries this year due to delays. Manchester United raised its second-quarter profit guidance while maintaining its full-year guidance, with the midpoint above consensus. United shares soared.

UnitedHealth Group profits rebound

The Dow Jones health insurance giant posted a 10% rise in earnings per share, handily beating its rivals, while revenue rose 9% to $99.8 billion. The adjusted figures offset some, but not all, costs related to a cyberattack on its Change Healthcare unit that disrupted bill payments and prescription approvals across the industry. Adjust for the modest impact of cyberattacks, UnitedHealth (UNH) reported that its medical expense ratio, which is the percentage of premiums paid in benefits, rose to 83.9%, slightly higher than expected. While up from 82.2% a year ago, this eased investor concerns about strong health care utilization trends. UNH stock fell to its lowest level since November 2021, but has since surged.

DR Horton top view

The homebuilder giant’s earnings per share rose 29% and revenue rose 14% to $9.11 billion, both of which easily topped fiscal second-quarter expectations. Housing orders grew 14%, or 17% in value. Dr. Horton (DHI) Revenue grew for the full year, but mainly in the second quarter. The builder raised its full-year buyback guidance to $1.6 billion from $1.5 billion. Shares tried to rise Thursday, but then gave back those gains and fell for the week. at the same time, Knowledge Base Home Page (KBH) agreed to buy up to $1 billion of stock and increase its quarterly dividend to 25 cents a share from 20 cents. Shares rose on Friday on the news, recouping weekly losses.

Popular opinions on banks

Goldman Sachs (GS), Morgan Stanley (Multiple Sclerosis), Bank of America (BAIC), PNC Financial (PNC) and bank of new york mellon (BK) All results announced. Goldman Sachs on Monday reported a 32% profit increase and a 16.3% increase in net income, driven primarily by growth in its investment banking business. Morgan Stanley on Tuesday reported a 19% rise in earnings per share, reversing eight quarters of decline. Revenue growth slowed, growing 4.3%. Bank of America’s earnings per share fell 12% but beat expectations. PNC beat estimates despite another earnings-per-share decline. Bank of New York Mellon reported profit growth of 11%.

Online Brokerage Delivery

Charles Schwab (black) and Interactive Brokers (IBKR) rose after beating profit expectations. Schwab reported a 20% drop in adjusted earnings per share and a 7% drop in revenue to $4.74 billion, slightly better than expected. Net new assets increased by $88.2 billion, and total client assets grew 20% to a record $9.11 trillion. SCHW stock is rising strongly and moving out of buy zone. Interactive Brokers reported earnings per share growth of 21%, but revenue fell slightly, growing 14% to $1.203 billion. IBKR stock price rebounded from the 50-day line and posted small gains this week.

Oil services giant SLB meets

First-quarter profit growth of 19% was consistent with the view. Revenue grew 13% to $8.71 billion, slightly ahead. About half of first-quarter revenue growth came from Aker’s subsea business, which was added in the fourth quarter as part of the OneSubsea joint venture. SLB (SLB) International revenue grew 18% in the first quarter, although North American sales fell 6%. Looking ahead to the second quarter, SLB expects a seasonal rebound in drilling activity in the Northern Hemisphere and “strong international activity.” SLB aims to return $3 billion to shareholders by 2024 and $4 billion by 2025. Fundamentals. Shares fell as crude oil prices fell.

Results mixed for healthcare giants

Abbott Laboratories (ABT) and Johnson & Johnson Johnson & Johnson (JNJ) beat first-quarter profit expectations, but sales were mixed. Abbott’s earnings per share fell 5%, while J&J’s earnings per share rose 12%. Abbott beat sales expectations but issued modest guidance. J&J has little revenue, not least from its psoriasis drug Stelara.

News introduction

intracellular therapy Shares of ITCI surged to a record high on Tuesday after its drug Caplyta showed promise in treating a common form of depression. The results exceeded the company’s own expectations and those of other antipsychotics tested for the same use. Caplyta treats depression associated with schizophrenia and bipolar disorder.

Eli Lilly and Company (LLY) reported that its weight-loss drug successfully treated sleep apnea in obese patients. Eli Lilly plans to ask global regulators to approve this use of the drug later this year.

Procter PG reported better-than-expected first-quarter profits and raised its full-year earnings per share target, but revenue grew 0.6% to $20.2 billion, missing expectations.

American Express (AXP) topped the list with earnings, while the Dow Jones payments giant reported roughly flat revenue, up 11% to $15.8 billion. But payments through the American Express network came up short.

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