Main subjects of the day
By 8:18 AM, Dow Jones futures were down 43 points, or 0.13%. S&P 500 and Nasdaq-100 futures fell 0.12% and 0.14%, respectively.
The main indices fell last week, with the Dow Jones (DOWI:DJI) down 0.23% and ending a four-week streak of gains. The Nasdaq (NASDAQI:NDX) shed 0.42%, while the S&P (SPI:SP500) shed 0.1%.
This week, Wall Street is looking at mega-cap technology earnings results, which will mark the midpoint of earnings season, with Alphabet, Microsoft, Amazon and Meta Platforms all reporting.
About 76% of S&P 500 companies that reported earnings through Friday beat analysts’ earnings estimates, according to FactSet data. However, first-quarter earnings for S&P 500 companies are estimated to decline by 5.2%, according to Refinitiv.
On Monday, analysts processed results from Coca-Cola, Philips and Credit Suisse, among others. After the closure, Whirlpool and First Republic, Cliffs will be expected.
Investors are also keeping an eye on new US economic data such as the Chicago Fed National Activity Index, Dallas Fed Manufacturing Index and the 3- and 6-month Auction.
On the global economic agenda, South Korea’s GDP will be awaited. The Ifo Business Climate indicator for Germany was released this morning, and it increased by 0.4 points from the previous month to 93.6 in April 2023, the sixth consecutive month of increase and the highest level since February last year. Still, the latest reading was just short of market expectations of 94.0, suggesting business concerns are easing, but Europe’s biggest economy still lacks momentum.
In Asia, most Asian markets closed lower, reflecting the weekly drop in assets on Wall Street and that of a busy week with important economic data in the region. Market players will closely follow the Bank of Japan’s monetary policy meeting later this week, the first to be led by new BOJ chief Kazuo Ueda. The Japanese official said he was considering a longer-term review of monetary easing. Some Southeast Asian markets are closed today for a holiday, including Singapore, Malaysia and Indonesia. Close: Shanghai SE (China), -0.78%. Nikkei (Japan), +0.10%. Hang Seng Index (Hong Kong), -0.58%. Kospi (South Korea), -0.82%. ASX 200 (Australia), -0.11%.
European markets are operating at a low level, as investors reflect the earnings season, with emphasis on the 12% increase in the shares of the Dutch company Philips, with increased sales, despite the growing net loss due to its restructuring and a provision for litigation. Meanwhile, Credit Suisse released its results in what could be its last earnings in its 167-year history following its emergency sale to UBS.
US investors will get a new stock market fear gauge on Monday when the Cboe releases an index that will track implied volatility using options contracts with less than a day to expiration, according to Bloomberg.
Wall Street Corporate Highlights for Today
Tesla (NASDAQ:TSLA) – The electric vehicle maker fell nearly 1% after a letter from institutional investors to Tesla’s board of directors to rein in CEO Elon Musk. Last week, the company reported a drop in net profit of more than 20% year-on-year.
Johnson & Johnson (NYSE:JNJ) – For Johnson & Johnson, 2023 will mark a turning point as the company completes the separation of its Consumer Health business, Kenvue. According to a report by the WSJ , Kenvue could start meeting with investors as early as Monday to raise $3.5 billion or more at a valuation of approximately $40 billion. Upon listing, Kenvue would trade under the ticker KVUE.
Bed Bath & Beyond (NASDAQ:BBBY) – The “meme stock” was down 35% on Monday ahead of the open. Bed Bath & Beyond filed for bankruptcy protection on Sunday, ending months of warnings by the company that more capital was needed to avoid Chapter 11. The stock has lost 88% since the start of the year.
Comcast (NASDAQ:CMCSA) – The chief executive of NBCUniversal has left the US entertainment giant after acknowledging “an inappropriate relationship” with a colleague, parent company Comcast announced on Sunday. Comcast said in a statement that it had reached a “mutual decision” with Jeff Shell for him to resign “with immediate effect” and “following the company’s investigation led by outside counsel into a complaint of inappropriate conduct.”
Albemarle (NYSE:ALB) – The miner’s shares rose nearly 3% in premarket trading, paring Albemarle’s losses last week. Shares fell 10% on Friday amid reports that Chile was considering nationalizing its lithium mining industry. Albemarle CEO Kent Masters told CNBC on Friday that the company’s existing mine and contracts in the country would not be affected.
Apple (NASDAQ:AAPL) – Apple is developing a new iPhone app for physical and mental health tracking. This app will allow users to document their daily activities and behaviors. According to The Wall Street Journal, the app will include a journaling feature and a personalization feature that suggests possible topics to write about, such as exercise, daily activities, and thoughts.
LVMH (USOTC:LVMUY) – Luxury goods giant LVMH on Monday became the first European company to surpass $500 billion in market value. The parent of Louis Vuitton, Moët & Chandon and Hennessy, as well as brands such as Givenchy, Bulgari and Sephora, reported a 17% rise in first-quarter sales earlier this month, more than double analyst expectations. Its stock hit an all-time high after the results and hit another all-time high on Monday.
Earnings
Coca Cola (NYSE:KO) – Shares in the beverage maker were up about 1.4% in early morning after the company posted better-than-expected first-quarter earnings, boosted by price increases and higher demand. Revenue was in line with expectations at an adjusted $10.96 billion compared to Refinitiv’s consensus estimate of $10.8 billion.
Koninklijke Philips (NYSE:PHG) – Shares in Koninklijke Philips NV rose in premarket trade on Monday after the Dutch conglomerate announced a first-quarter adjusted profit of €0.22 per share, versus €0. 15 in the same period last year. Comparable sales were up 6% in the first quarter, while PHG generated group sales of €4.2 billion, up 6.4% year-on-year.
Credit Suisse (NYSE:CS) – The Swiss bank’s US-listed stock was up about 2% premarket. Credit Suisse said it experienced net asset outflows of CHF61.2 billion ($69 billion) during the first quarter. However, it reported a profit of CHF 12.43 billion for the quarter, thanks to a CHF 15 billion write-down of AT1 bonds. The acquisition of Credit Suisse by UBS should be completed by the end of the year.
Market view
First Solar (NASDAQ:FSLR) – Shares were down 2.5% premarket following a downgrade from Citi to Sell from Neutral. The Wall Street firm cited a challenging long-term outlook for First Solar, which is up about 45% on the year.
C3.ai (NYSE:AI) – Shares of the popular artificial intelligence stock were down nearly 5% before the open after Wolfe Research downgraded the stock to underperform, citing concerns over sluggish revenue growth.
Medtronic (NYSE:MDT) – The medical device maker rose 1.4% after being upgraded to overweight from equal weight by Wells Fargo. The Wall Street firm expects Medtronic to benefit from a maturing product pipeline and improving trends in medical technology.