Stocks across Europe and Asia traded mixed, while US equity index futures were higher ahead of the New York open, as many global markets reopened after an extended holiday weekend ahead of what is scheduled to be a big run for US corporate quarterly results.
As of Monday, approximately 21% of the S&P 500’s market capitalization had reported first-quarter results, of which 77% have surpassed their bottom-line estimates, beating estimates by 6.0%, with around 48% of those reported having topped revenue estimates.
Elsewhere, in energy; oil prices continue to extend previous gains, rising for a third consecutive day following the US State Department’s decision to remove waivers on Iranian crude purchases, issued last November to eight different countries, including China, India and Japan, which is due to expire on May 2.
It was indeed this record one-day rise for the Energy sector (+2.11%), the largest since January, that pushed Wall Street higher on an otherwise muted Monday.
The S&P 500 spent much of the morning flicking in and out of negative territory but closed +0.09% higher, owing its advance chiefly to the jump in oil prices.
Steady gains in the Technology sector (+0.23%) saw the tech-heavy Nasdaq finish at all-time-highs, up +0.28%, as investors await results from more of Wall Street’s tech-titans.
In today’s economic calendar; a US Services PMI figure is expected to be released at 9:45am EST, followed by New Home Sales data for March at 10am EST.
As earnings season gathers pace; Procter & Gamble (PG), Coca-Cola (KO), Verizon Communications (VZ), United Technologies (UTX), Lockheed Martin (LMT), Texas Instruments (TXN), Snap (SNAP), Twitter (TWTR), JetBlue Airways (JBLU), Fifth Third Bancorp (FITB), State Street (STT), Harley-Davidson (HOG), eBay (EBAY) and Hasbro (HAS) are amongst the major companies scheduled to report their Q1 financials today.
TODAY’S TOP HEADLINES:
Energy & Oil: Oil Climbs Toward $75 in London After Trump Tightens Screws on Iran. (Bloomberg)
Oil rose toward $75 in London after the US announced a tougher crackdown on Iran, seeking to choke off OPEC crude exports.
Today’s Economical Announcements.
09:45AM – ★★☆ – Services PMI (Apr) (Previous: 55.3)
10:00AM – ★★★ – New Home Sales (Mar) (Previous: 4.9%)
STOCKS IN THE SPOTLIGHT:
Pre-Market Movers & News Related Stocks.
Hasbro (HAS): [EARNINGS] Reported a quarterly profit of 21 cents per share, surprising analysts who had expected an 11 cents per share loss. Revenue above expectations, and the company said its overall results were helped by cost savings and higher profit margins.
Whirlpool (WHR): [EARNINGS] Reported adjusted quarterly profit of $3.11 per share, beating the consensus estimate of $2.86 a share. Revenue fell below forecasts, however. Whirlpool said it expected lower costs from tariffs and raw materials this year.
Lockheed Martin (LMT): [EARNINGS] Earned $5.99 per share for the first quarter, well above the consensus estimate of $4.34 a share. Revenue above forecasts and Lockheed Martin raised its full-year outlook.
Twitter (TWTR): [EARNINGS] Earnings came in at an adjusted 37 cents per share, well above the consensus estimate of 15 cents a share. Revenue beat forecasts. Twitter’s monetizable daily rose by eight million to 134 million, also exceeding analysts’ forecasts.
United Technologies (UTX): [EARNINGS] Reported an adjusted $1.91 per share for the first quarter, 20 cents a share above estimates. Revenue came in above Wall Street forecasts, and the company raised its full-year outlook.
Coca-Cola (KO): [EARNINGS] Beat estimates by 2 cents a share, with adjusted quarterly profit of 48 cents per share. Revenue above forecasts. Coca-Cola benefited from improved sales of water and new soft drink flavors.
Harley-Davidson (HOG): [EARNINGS] Earned 80 cents per share for the first quarter, beating the consensus estimate of 65 cents per share. Revenue beat forecasts, as well, and Harley’s U.S. market share increased.
Lyft (LYFT): [RATING] Rated “buy” in new coverage at both Stifel Nicolaus and Jefferies, with both citing the growth of the ride-sharing industry and Lyft’s strong No. 2 position in the market.
Tesla (TSLA): [NEWS] CEO Elon Musk said the automaker’s robotaxis with no human drivers would hit some US markets next year.
Sprint (S): [NEWS] Sprint and AT&T have settled a lawsuit in which Sprint had accused its rival of deceptive advertising over its “5G E” branding. Terms of the settlement weren’t announced, but an AT&T spokesman told CNBC that the two sides have “amicably” settled the matter.
PG&E (PCG): [NEWS] PG&E will add another director to its board with experience in the utility industry, as well as adding a safety specialist as an executive advisor. The moves are part of an agreement by the California utility with activist investor BlueMountain Capital Management.
Procter & Gamble (PG): [EARNINGS] Earned an adjusted $1.06 per share for its latest quarter, 3 cents a share above estimates. Revenue topped forecasts and P&G raised its organic sales growth outlook.
Verizon (V): [EARNINGS] Earned an adjusted $1.20 per share for the first quarter, 3 cents a share above estimates. Revenue slightly below forecasts, however, but Verizon did boost its full-year guidance.
Exxon Mobil (XOM): [NEWS] Exxon Mobil struck a 20-year liquefied natural gas supply agreement with China’s Zhejiang Energy. Financial details were not disclosed.
Facebook (FB): [NEWS] Facebook hired State Department lawyer Jennifer Newstead as its general counsel, and also named former Microsoft public relations chief John Pinette as its new vice president of global communications.
Dow Inc. (DOW): [NEWS] Dow locked out union workers at its Deer Park, Texas, chemical plant after members of the United Steelworks Union rejected its latest contract proposal.
GAINERS: CRZO, MDSO, DBX, CG, APO, UNP, STZ
DECLINERS: EAF, ISRG, SNBR, GPC