Stock Market Futures Fall After Dow’s Worst Day Since 2020
U.S. stock futures are in the red as we approach the latter half of the current trading week. For one thing, this comes at a time when investors have plenty of input across the board. From the Federal Reserve’s reassurance of its plans to address inflation to decelerating major retailer earnings, this is apparent. While taking all this in, uncertainty and volatility would likely hold as prominent themes in the stock market today. Regarding retail earnings, both Target (NYSE: TGT) and Walmart (NYSE: WMT) fell short of consensus net income forecasts from Wall Street this week.
Providing some insight into this is the chief investment officer of Cresset Capital, Jack Ablin. He begins by saying, “I think what investors realized was these seemingly safe haven stocks, the staples like Target, like Walmart, are not immune — that their costs are rising, they cannot pass their higher costs onto their consumers. And as Walmart said yesterday, their customers are coming in and buying groceries, but they’re not buying hard goods, they’re not buying other products where they have a slightly higher margin.” This would be the case as the ongoing Ukraine-Russia war continues to impact energy costs globally.
At the same time, Ablin also notes that while consumer wages are growing, inflation is outpacing this growth. This in tandem with food and energy costs increasing rapidly would funnel spending away from more discretionary areas. Because of this, the higher profit margin hardware offerings from retailers would see a decline in demand. While investors continue to take in all this information, today’s stock market news cycle is also jam-packed with notable updates. As of 5:14 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 1.38%, 1.52%, and 1.70% respectively.
Dish Network To Begin Selling AT&T Internet Solutions Via Distribution Deal
Dish Networks (NASDAQ: DISH) and AT&T (NYSE: T) are making moves on the internet connectivity front now. Namely, as of yesterday, Dish will begin selling AT&T’s internet services. Furthermore, AT&T is now the primary network services partner for Dish’s MVNO customers. With the current distribution deal in place, Dish will provide its current and future retail wireless brand clients with AT&T’s wireless network. This would be alongside the new Dish 5G network as well. On AT&T’s end, the company will be contributing transport and roaming services, supporting Dish’s growing 5G network.
In the words of Amir Ahmed, the executive VP of sales at Dish, “Adding AT&T Internet to our robust lineup of TV and home integration services enhances our ability to provide better overall service, technology, and value to our customers.” Overall, this is part of the ongoing partnership between Dish and AT&T. In brief, this would be in reference to the 10-year agreement between the two firms worth at least $5 billion. With this powerful collaboration kicking into high gear, both Dish and AT&T could be gaining attention in the 5G space now. As such, it would not surprise me to see investors turning their radars towards DISH stock and T stock today.
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Synopsys Gains After Topping Top And Bottom Line Estimates In
Among the companies in focus in the earnings space today would be Synopsys (NASDAQ: SNPS). According to its second fiscal quarter report, the company’s total revenue for the quarter is $1.279 billion. Also, its earnings per share for the quarter is $2.50. To compare, consensus values on Wall Street are $1.26 billion and earnings of $2.37 per share respectively. Following the overall solid performance from Synopsys, SNPS stock would be grabbing headlines today.
Commenting on the company’s overall performance for the quarter is CEO Aart de Geus. He highlights, “Synopsys delivered an outstanding fiscal second quarter, exceeding our guidance targets with strength across all product groups and geographies. Based on strong first half execution and confidence in our business, we are raising our full-year targets substantially.” According to de Geus, Synopsys has three core growth drivers fueling its current momentum. In the CEO’s words, these are “an unmatched product portfolio with groundbreaking new innovations, robust semiconductor and electronics market demand, and excellent operational execution.”
Also in the financial press release, Synopsys is anticipating year-over-year growth of 20% for its annual revenue. Should this be the case, the company would hit the $5 billion mark for the first time on this front. After considering Synopsys’ position in the booming semiconductor and software markets, SNPS stock could be a go-to for investors now.
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Applied Materials Earnings Preview: What To Know
In other earnings-related news, Applied Materials (NASDAQ: AMAT) is set to host its latest earnings call after today’s closing bell. For starters, consensus estimates on Wall Street are a total revenue of $6.35 billion alongside earnings of $1.90 per share. Year-over-year, this adds up to gains of about 16% and 13% respectively. Notably, tech investors will likely be keen to see how AMAT’s core semiconductor chip business will fare this quarter. After all, it is among the largest firms in terms of revenue exposure to the Chinese market. With China still grappling with a series of pandemic-related slowdowns, demand for AMAT’s offerings could dip.
Nonetheless, it is important to remember that China is still making heavy investments in the sector. On the whole, the country is actively investing $1.4 trillion through 2025 towards bolstering its local tech industry. This would mark a notable tailwind for AMAT when you consider two key factors. That is, the importance of semiconductor chips in tech development and the company’s market presence in China. Pair all this with the recent solid quarterly earnings from AMAT’s industry peers like AMD (NASDAQ: AMD) and all eyes could be on the company today. With all this in mind, it would not surprise me to see investors eyeing AMAT stock at today’s market open.
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Other Notable Stock Market Earnings To Consider Today
For the other firms reporting earnings today, we have more retail companies hosting their latest earnings calls. In the pre-market, Kohl’s (NYSE: KSS), BJ’s Wholesale (NYSE: BJ), Canada Goose (NYSE: GOOS), and Lightspeed Commerce (NYSE: LSPD) are on tap. On the flip side Ross Stores (NASDAQ: ROST), VF Corporation (NYSE: VFC), and Deckers (NYSE: DECK) will be releasing their latest earnings after the closing bell. Not to mention, Palo Alto Networks (NASDAQ: PANW) is also set to host its latest earnings call at the same time. All in all, there seems to be no shortage of exciting stock market news to consider today.
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