Stock Market Futures Fluctuate As Volatility Persists Across Markets
U.S. stock futures are mostly flat during early morning trading on Wednesday this week. On the whole, the uncertainty over a flurry of economic headwinds continues to hang over the stock market now. From inflation hitting decades-high levels to ongoing mentions of recession, this is apparent.
Commenting on the current state of markets is Morgan Stanley (NYSE: MS) CIO Michael Wilson. He writes in a note that the strength in markets last week “will prove to be another bear market rally in the end.” Adding to that, Wilson argues, “The primary rationale ascribed to this particular rally beyond just an oversold bounce is that the Fed may be contemplating a pause in September.” He explains further by saying that inflation is still too high and that “whatever pivot investors might be hoping for will be too immaterial to change the downtrend in equity prices.”
While considering all of this, investors also have plenty of earnings-related data to take in today. As of 5:14 a.m. ET, the Dow and S&P 500 futures are rising by 0.38% and 0.13% respectively. Meanwhile, Nasdaq futures are trading lower by 0.10%.
Salesforce Gains After Notable Earnings Beat And Upbeat Guidance
Shares of Salesforce (NYSE: CRM) are gaining attention in the stock market now. This comes as the customer relationship management (CRM) software goliath posted better-than-expected quarterly figures. According to the press release, Salesforce’s earnings per share for the quarter is $0.98. Additionally, the company’s total quarterly revenue is $7.41 billion. For reference, consensus figures on Wall Street are earnings of $0.94 and $7.38 billion respectively. Because of this overall positive earnings update, investors would be eyeing Salesforce today.
Speaking on the company’s overall performance for the quarter is Co-CEO Bret Taylor. He states, “Our financial results once again demonstrate the strength and durability of our business model as we continue to see strong demand from customers across the entire Customer 360 portfolio.” According to Taylor, this signals Salesforces’ relevance amidst the current uncertain economic times. Moreover, Co-CEO Marc Benioff also highlights a key operational metric for Salesforce in the press release, remaining performance obligation (RPO). Benioff notes that Salesforce currently has an RPO of $42 billion. The likes of which represent the company’s “future revenue under contract” in his words.
Looking forward, Benioff says, “While delivering incredible growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan to drive both top and bottom-line performance.” Also in the press release, the CRM firm is raising its fiscal year earnings per share guidance to a range of $4.74 to $4.76. This would be in comparison to its previous earnings outlook of between $4.62 to $4.64 per share. As a result, it would not surprise me to see CRM stock making the rounds in the stock market today.
Victoria’s Secret Rises Following Strong Quarterly Profits
Another company making headlines on the earnings front is Victoria’s Secret (NYSE: VSCO). Overall, the lingerie, clothing, and beauty retailer posted commendable results in its fiscal first-quarter update. According to the report, Victoria’s Secrets’ quarterly earnings per share is $1.11. Furthermore, the company’s total revenue for the quarter is $1.48 billion. To put things into perspective, consensus figures on Wall Street are earnings per share of $0.84 on revenue of $1.48 billion. Thanks to the sizable earnings beat, VSCO stock could be making a splash in the stock market today. It seems that as pandemic-era restrictions continue to loosen, consumers are flocking to Victoria’s Secret again.
Providing further details into the company’s latest quarterly update is CEO Martin Waters. The CEO notes that the Victoria’s Secret team’s strong execution is to thank for the current quarter’s performance. Waters also adds that “Powered by our brand revolution, we have strengthened our emotional connection with our customer and further enhanced our leadership in bras through innovative product launches, while diligently focusing on the efficiency of our retail operations.” Not to mention, the company is producing these solid results despite growing global headwinds and an inflationary business environment.
Speaking of macroeconomic pressures, the beauty retailer does acknowledge that further turbulence could be in store for the retail industry. Nonetheless, through a combination of new business initiatives and “disciplined financial management,” Waters notes that Victoria’s Secret is ready to address macro challenges in the mid-term. With all this in mind, VSCO stock could be worth keeping an eye on at today’s opening bell.
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HP In Focus With Latest Quarterly Results Topping Wall Street Forecasts, Raises Full-Year Earnings Outlook
HP (NYSE: HPQ) is also in the news today following its second-quarter financial update. In its quarterly earnings report, HP’s total revenue for the quarter is $16.5 billion. Also in the press release, the computer hardware firm’s quarterly earnings per share is $1.08. For comparison, consensus analysts’ figures are $11.2 billion in sales and earnings of $1.05 per share. Notably, the company’s sales for the quarter are noticeably above general estimates. In detail, HP’s personal systems division revenue is $11.5 billion and its printing revenue is $4.96 billion. According to HP CEO Enrique Lores, the company “delivered a solid quarter of revenue and non-GAAP EPS growth, while returning significant capital to shareholders.”
Regarding the company’s performance for the fiscal year so far, Lores points out that HP’s key business grew by double digits year-over-year. Similar to Victoria’s Secret, the company’s consistent performance amidst a volatile macro environment would draw investors’ attention. According to its earnings report, HP is anticipating earnings of between $4.24 and $4.38 per share for the fiscal year. This would be an increase on the low-end from its prior outlook. As such, all this would put HPQ stock on investors’ radars now.
Top Stocks Market Earnings To Know About Today
For today’s latest batch of earnings, we have a rather diverse group of companies on deck. In the pre-market, Capri Holdings (NYSE: CPRI), Donaldson (NYSE: DCI), Weibo (NASDAQ: WB), and Conn’s (NASDAQ: CONN) are among the notable names reporting. Alternatively, there is a greater focus on tech and retail after today’s closing bell. On the retail end, GameStop (NYSE: GME) and Chewy (NYSE: CHWY) are the main players coming into focus. For tech, MongoDB (NASDAQ: MDB), C3.ai (NYSE: AI), Pure Storage (NYSE: PSTG), and Hewlett Packard Enterprise (NYSE: HPE) will be hosting their earnings calls then. Safe to say, there is no shortage of exciting news to consider in the stock market today.