Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Apr 20, 2023 at 9:15 AM
Updated on Apr 20, 2023 at 9:20 AM
  • Opening View

Stocks futures are falling Thursday, as traders unpack mixed corporate earnings results, including a lackluster report from electric vehicle (EV) giant Tesla (TSLA). At last glance, Dow Jones Industrial Average (DJIA) futures are down nearly 200 points, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) are also deep in the red. Jobless claims came in at 245,000 for last week, while the Philadelphia Fed Manufacturing Index dropped to negative 31.3 in April.

Continue reading for more on today's market, including:

futures Chart April 202023

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.3 million call contracts and 1 million put contracts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.80 and the 21-day moving average stayed at 0.78.
  2. Tesla Inc (NASDAQ:TSLA) is 8% lower premarket following the company's first-quarter earnings report. The EV maker reported earnings that fell more than 20% year-over-year, with CEO Elon Musk saying the shaky economic backdrop might impact consumer's car purchasing decisions. Coming into today, TSLA is up 46.6% in 2023.
  3. American Express Company (NASDAQ:AXP) is down 2% before the bell and looking to add to an 11.9% year-over-year deficit, after announcing a first-quarter profit miss. Earnings per share of $2.40 were lower than $2.66 estimates, while revenue beat analysts' expectations.
  4. Piper Sandler downgraded the shares of Bath & Body Works Inc (NYSE:BBWI) to "neutral" from "overweight" and slashed its price target to $37 from $38. The brokerage firm said potential upside is being stymied by persisting margin pressures. Down 2.6% in electronic trading, BBWI already sports a 35.9% year-over-year loss.
  5. Existing home sales and leading economic indicators are due out later today.

OV Buzz Chart April 20

Stateside Earnings Impact Overseas Markets

Markets in Asia finished on both sides of the aisle today, as investors unpack earnings reports from several companies stateside. Japan’s Nikkei finished the day 0.2% higher, while Hong Kong’s Hang Seng rose 0.1%. China’s Shanghai Composite inched 0.09% lower, while the South Korean Kospi fell 0.5%.

European markets are lower midday, with auto stocks taking a hit after Tesla’s earnings results. London’s FTSE 100 is 0.2% lower, while the French CAC 40 falls 0.6%, and the German DAX drops 1%.

Published on Apr 19, 2023 at 2:12 PM
Updated on Apr 20, 2023 at 8:30 AM
  • Buzz Stocks

All eyes are on Netflix Inc (NASDAQ:NFLX) today, after the Big Tech name's mixed first-quarter report, disappointing forecast, and low subscriber growth. The results showed profits of $2.88 per share, slightly above analyst estimates of $2.86 per share, and lower-than-expected revenue of $8.16 billion. Analysts are musing over whether or not the "password-sharing crackdown" will help the streaming giant, though Netflix has delayed the rollout due to backlash. 

Several analysts chimed in on NFLX after the earnings event. UBS upgraded the stock to "buy" from "neutral," with a price-target hike to $390 from $350, while Wedbush added the stock to its "best ideas" list. Jefferies and J.P. Morgan Securities lowered their price targets to $405 and $380, respectively, while no fewer than four other firms lifted their price objectives, including Pivotal Research to $425. 

Netflix stock is down 3.9% to trade at $320.56 at last glance, and was earlier as low as $316.10. Longer term, its 140-day moving average still lingers below as a potential line of support. Year-to-date, the equity is still up 8.8%. 

NFLX April19

Netflix has seen 2.5 times its average daily options volume already. Bears are pulling slightly ahead, with 261,000 calls and 270,000 puts exchanged so far. Expiring at the end of this week, the April 330 call is the most popular, with new positions being opened there. 

Published on Apr 20, 2023 at 8:00 AM
Updated on Apr 20, 2023 at 8:00 AM
  • The Week Ahead
Published on Apr 19, 2023 at 4:27 PM
Updated on Apr 19, 2023 at 4:31 PM
  • Market Recap

Wall Street marked another session of choppy trading with a mixed finish, while the market's "fear gauge," the Cboe Volatility Index (VIX), logged a sixth-straight daily loss and lowest level since November 2021. This week's mixed earnings processional and lack of company forecasts spiraled investors toward more Fed fears, with interest rates expected to rise within in the next few weeks. 

Continue reading for more on today's market, including:

  • Behind the Netflix stock's post-earnings slide.
  • How VIX & SPX moves could impact options trading.
  • Plus, "Best Idea" bank stock; 4 cannabis names to watch; and the latest big bank bull note.

Closing Indexes Summary April 19

NYSE and Nasdaq Stats April 19

 Things to Know Today 

  1. Facebook parent Meta (META) started cutting more jobs in its 21,000 employee layoff plan, with focus on the technical employee sector. (CNBC)
  2. Microsoft (MSFT) agreed to invest $50 million in southeastern Wisconsin property, which covers 315 acres and houses manufacturer Foxconn Technology . The company plans to build a $1 billion data center at the location. (MarketWatch)
  3. Analyst named this bank stock a "Best Idea."
  4. Keep close watch of these cannabis stocks on 4/20.
  5. Bull note just boosted big-name bank stock.

Corporate Earnings April 19

Unusual Options Activity April 19

Oil, Gold Pull Back

Black gold marked a two-week low close, moving back below $80 as demand outlook weighed. May-dated crude fell $1.70, or 2.1%, to close at $79.16 per barrel.

A stronger U.S. dollar sent gold prices lower this afternoon, though the precious metal remains above the round $2,000 level. The June-dated commodity lost $12.40 or 0.6%, to settle at $2,007.30 an ounce.

Published on Apr 19, 2023 at 12:26 PM
Updated on Apr 19, 2023 at 12:36 PM
  • Midday Market Check
Published on Apr 19, 2023 at 12:22 PM
  • Earnings Preview

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) will step in to the earnings confessional before the open tomorrow. Below, we will explore TSM's post-earnings history to help gauge what options traders can expect this week.

Over the last two years, Taiwan Semiconductor stock has had a generally positive history of post-earnings reactions, five of the last eight next-day sessions higher. This time around, options traders are pricing in a 5.9% post-earnings swing for the security, which is slightly higher than the 3.9% move TSM averaged after its last eight reports, regardless of direction. 

TSM was last seen down 1.8% at $86.65, after a Wall Street Journal report indicated the company is pushing back on some conditions the U.S. attached to chip factory subsidies, and seeks up to $15 billion from the government. The shares' 110-day moving average has contained today's pullback, while TSM remains up 13.7% year-to-date.

TSM Chart April 192023

Put volume is running at double the intraday average amount, with 21,000 bearish bets across the tape versus 19,000 calls. The most popular contract, meanwhile, is the monthly April 91 call, where new positions are being opened.

Even with earnings looming, options looks like a prudent play. The stock's Schaeffer's Volatility Index (SVI) of 33% stands higher than just 9% of readings from the last year. This means options traders are pricing in relatively low volatility expectations for the time being. Even better, the security tends to outperform said volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) tally of 92 out of 100.

Published on Apr 19, 2023 at 10:27 AM
  • Buzz Stocks

The shares of Western Alliance Bancorp (NYSE:WAL) are soaring today, up 20.3% at $39.09 at last glance, after the bank name's first-quarter earnings beat, despite lower-than-expected revenue. Wedbush chimed in with a lofty bull note after the event, upgrading WAL to "outperform" from "neutral," and adding it to its "best ideas" list. The firm also raised its price target to $50 from $38. 

Western Alliance stock has struggled to regain footing since its bank crisis bear gap. Today's pop has WAL on track for its best day in over two years, though the $40 level appears to be keeping gains in check. The stock broke above recent pressure at its 20-day moving average; however, several key trendlines linger above as potential pressure. Year-to-date, the equity is still down 35.4%. 

Options bulls are betting on WAL today, with 17,000 calls exchanged so far -- six times the intraday average amount -- in comparison to 6,024 puts. The April 40 call is the most active, followed by the 41 call in the same monthly series, with new positions being opened at the latter. The equity is sporting attractively priced premiums at the moment, too, per its Schaeffer's Volatility Index (SVI) of 70%, which sits in the low 14th percentile of its annual range. 

Analyst sentiment is similarly hopeful, as heading into today, 10 of the 12 in coverage carried a "buy" or better rating. Meanwhile, short interest has been shooting higher, up 74% in the most recent two-week reporting period, and now makes up 6.7% of the stock's available float. 


Published on Apr 19, 2023 at 10:09 AM
  • Editor's Pick
  • Buzz Stocks

Tomorrow, 'only' in states where it's legal, cannabis will be celebrated as part of the long-fabled 4/20 (April 20) holiday. For investors privy to the cannabis stock space, here's a quick roundup of some notable names to keep an eye on.

Tilray Brands Inc (NASDAQ:TLRY) released a new product lineup for the 'holiday', though the shares were last seen 1.2% lower to trade at $2.44. On the charts, TLRY has traded in a tight range between $2.30 and $2.75 for the last month. The equity is dangerously close to its -10% year-to-date level, and is off by 57.8% year-over-year. 

Curaleaf Holdings Inc (OTCQX:CURLF) is trading at $2.46 at last check. Like Tilray stock, the $2.40 level is helping to keep CURLF's recent losses in check, especially as its pulled back from a November, 10-month peak near the $8 area. Year-over-year, the shares are more than 61% lower.

Aurora Cannabis Inc (NASDAQ:ACB) continues to flail below $1 per share, and was last seen trading at 64 cents. The equity has traded in penny-stock territory for more than a year, a timeframe in which its lost nearly 81%. 

Cronos Group Inc (NASDAQ:CRON) is down 1.2% at $2.02 at last glance. CRON has added 3.1% this month, but remains roughly 21% lower in 2023. After dipping below $2 per share for most of April, CRON is attempting to overcome this area after turning in wins of 5.4% and 4.1% on Monday and Tuesday, respectively.


Published on Apr 19, 2023 at 8:58 AM
Updated on Apr 19, 2023 at 9:00 AM
  • Opening View

Stocks futures are lower Wednesday, as traders continue to digest the latest round of quarterly reports and the global inflation outlook. At last check, Dow Jones Industrial Average (DJIA) and Nasdaq-100 Index (NDX) futures are both down triple digits, while futures on the S&P 500 Index (SPX) sit in the red as well.

Treasury yields are higher following a larger-than-expected rise in U.K. inflation, and the 2-year Treasury yield came close to 4.3% as investors bet on another stateside interest rate hike at the Federal Reserve's May 3 meeting. Elsewhere, mortgage demand in the U.S. rose 10% amid higher interest rates.

Continue reading for more on today's market, including:

  • How recent market moves could impact options, per Schaeffer's Senior Quantitative Analyst Rocky White.
  • Tech stock could topple technical ceiling.
  • Plus, airline's profit forecasts; potential layoffs at Meta Platforms; and AT&T's dips before earnings.

futures Chart April 192023

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 672,184 put contracts exchanged on Tuesday. The single-session equity put/call ratio fell to 0.64 and the 21-day moving average stayed at 0.78.
  2. United Airlines Holdings Inc (NASDAQ:UAL) is down 1.3% premarket, despite the major airliner yesterday forecasting second-quarter and full-year profits that were above expectations. missing first-quarter revenue estimates. Coming into today, UAL was up 14.2% year-to-date.
  3. Meta Platforms Inc (NASDAQ:META) is down 1.8% before the bell, after a person familiar with the company's plans relayed that the company is expected to announce another round of layoffs -- its first since November. The Facebook parent will also take to the earnings confessional after next Wednesday's close. Year-to-date, Meta Platforms stock is up 81%.
  4. AT&T Inc. (NYSE:T) is fractionally lower in electronic trading, and thinning its already marginal 1.9% year-over-year lead, as Wall Street looks ahead to the telecommunication giant's earnings, due out before the open tomorrow. Specifically, traders are looking at AT&T's subscriber growth.    
  5. Today brings the Federal Reserve's Beige Book. New York Fed President John C. Williams is also set to deliver remarks.


European Stocks Lower After CPI Reading

Asian markets finished mostly lower on Wednesday, though the South Korean Kospi bucked the broad market trend with a 0.2% gain. Hong Kong’s Hang Seng led the losses with a 1.4% drop, as tech and real estate stocks weighed on the index, while Japan’s Nikkei and China’s Shanghai Composite shed 0.2% and 0.7%, respectively. There’s cautious optimism around the region, after J.P. Morgan Securities, Citi, and UBS all raised their full-year forecasts for China’s economy in the wake of yesterday’s gross domestic product (GDP) data.

Markets are lower in Europe at last glance as well. The consumer price index (CPI) in the U.K. came in at 10.1% in March, down from the previous month’s 10.4% but up from the 9.8% reading anticipated by analysts. London’s FTSE 100 and the German DAX are both down 0.2%, while the French CAC 40 inches marginally lower.

Published on Apr 19, 2023 at 8:00 AM
  • Indicator of the Week
Published on Apr 18, 2023 at 4:27 PM
  • Market Recap

The major indexes closed out another wishy-washy session mixed, as investors continue to digest big name earnings and their impact on the U.S. economic outlook. Volatility is expected to continue with all eyes on Netflix (NFLX), United Airlines (UAL), and several other bank earnings reports due out tonight and before the bell tomorrow. The Cboe Volatility Index (VIX), meanwhile, logged a fifth-straight daily loss.

Continue reading for more on today's market, including:

  • Red-hot Crocs stock has room to run.
  • It's pre-earning bear notes for this Elon Musk stock.
  • Plus, 2 names seeing analyst attention today and Lockheed stock's post-earnings surge. 

Closing Indexes Summary April 18

NYSE and Nasdaq Stats April 18

 Things to Know Today 

  1. A recently noted flaw in the build of its 737 Max planes will not falter Boeing's (BA) plans to increase production, says CEO Dave Calhoun. (CNBC)
  2. The U.S. Treasury department said Secretary Janet Yellen will give remarks on the nation's economic relationship with China on Thursday. (MarketWatch)
  3. Rare double upgrade boosted chip giant.
  4. Bulls cheered this solar stock.
  5. Earnings sent Lockheed stock to a fresh record high.

Corporate Earnings April 18

Unusual Options Activity April 18

China GDP Data Pushes Oil Higher

Higher-than-expected gross domestic product (GDP) data out of China sent crude modestly higher for today's session. May-dated crude added 3 cents, or 0.1%, to close at $80.86 per barrel.

Gold managed to eke out a win despite a brief stint below $2,000 and two days of losses. The June-dated commodity added $12.70 or 0.6%, to settle at $2,019.70 an ounce.

Published on Apr 18, 2023 at 1:41 PM
  • Options Recommendations

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