Tech stocks surged before the bell Wednesday, outpacing the broader market as investors welcomed Tesla’s (TSLA) commitment to cheaper cars and awaited the next round of corporate earnings.
Tech-heavy Nasdaq 100 (^NDX) futures rose about 0.5%, following a strong closing gain. S&P 500 futures (^GSPC) rose 0.1%, continuing their rebound from their longest losing streak of 2024, while Dow Jones Industrial Average futures (^DJI) wobbled along the flat line.
Tesla shares jumped after the electric vehicle maker’s promise to accelerate the launch of more affordable models overshadowed its quarterly profit and revenue shortfall. This reassured investors worried about growth, amid a strategy shift towards robotaxis and the planned cancellation of a cheaper model.
The results of the first “Magnificent Seven” releases have intensified already high hopes for Big Tech profits, that mega-caps can reignite the stock rally they have fueled. Focus now shifts to Meta (META) report, due after market close, as shares of the Facebook owner rose after the Senate voted in favor of a potential ban on its rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) will follow on Thursday.
Meanwhile, Boeing (BA) earnings are due Wednesday morning, after a quarter rocked by a high-profile plane failure that led to a regulatory cap on production. Also on the agenda are updates from AT&T (T), IBM (IBM) and Ford (F), among others.
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Hilton continues to buy up its company
Hilton (HLT) continues to be one of the most aggressive acquirers of its stock among the billion companies I follow closely.
In many ways, it almost feels like Hilton is going private again! The hotel and resort company went public again in 2013 after being purchased by Blackstone in 2007.)
This is from the company’s just-released earnings report:
“During the quarter ended March 31, 2024, Hilton repurchased 3.4 million shares of common stock at an average price per share of $196.17, for a total of $662 million, returning $701 million of capital to shareholders during the quarter, including dividends. The number of shares outstanding as of April 19, 2024 was 250.0 million.
For perspective, Hilton ended 2022 with a share count of 277 million.
Toy Maker Revenue Is No Fun
No joke here, the profits of big toy makers Mattel (MAT) and Hasbro (HAS) aren’t much fun to watch.
Not exactly a great earnings report from Mattel last night – it now says its revenue will return to growth in 2025. Mattel is unique in that the Barbie movie really boosted its earnings last year , so things will be mathematically down. Sales fell 1% year-over-year in the first quarter.
Hasbro’s earnings this morning are also hard for investors to watch. The company reports a 21% drop in sales at its core consumer products business due to “broader industry trends, discontinued businesses and a reduction in closing sales due to last year’s inventory.” …
When it comes to billionaire investors, Bill Gates is a pretty well-known name. He made his fortune as CEO of Microsoft (NASDAQ:MSFT), the software company he co-founded. Gates is worth an estimated $127.7 billion (as of this writing), according to Forbes, making him the eighth-richest person in the world. After leading Microsoft for 25 years, […]
Here’s what to take away from today’s Morning Brief, which you can register to receive every morning in your mailbox accompanied by: Disappointing results from Boeing (BA) led the Dow to a slight loss on Wednesday, while a surprisingly positive reaction to results from Tesla (TSLA) led that stock to its best day in two […]
Amazon Chart Offers Clues Ahead of Tuesday’s First Quarter Results Reveal Amazon.com Inc. (NASDAQ:AMZN), will report its first quarter results on Tuesday. Wall Street expects EPS of 78 cents and revenue of $133.1 billion, as the company reports. after market hours. Amazon stock was supported by the company’s strong positioning in AI, cloud computing and […]
