{"id":23229,"date":"2024-04-24T09:36:15","date_gmt":"2024-04-24T14:36:15","guid":{"rendered":"https:\/\/www.eoption.com\/mid-morning-look-april-24-2024\/"},"modified":"2024-04-24T09:36:15","modified_gmt":"2024-04-24T14:36:15","slug":"mid-morning-look-april-24-2024","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/mid-morning-look-april-24-2024\/","title":{"rendered":"Mid-Morning Look: April 24, 2024"},"content":{"rendered":"\n
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Mid-Morning Look<\/span><\/b><\/p>\n

Wednesday, April 24, 2024<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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-31.16<\/span><\/p>\n<\/td>\n

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0.08%<\/span><\/p>\n<\/td>\n

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38,475<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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8.91<\/span><\/p>\n<\/td>\n

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0.18%<\/span><\/p>\n<\/td>\n

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5,079<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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92.16<\/span><\/p>\n<\/td>\n

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0.59%<\/span><\/p>\n<\/td>\n

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15,790<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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1.00<\/span><\/p>\n<\/td>\n

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0.05%<\/span><\/p>\n<\/td>\n

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2,003<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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U.S. stock markets are mixed as NYSE breadth weak, with Technology (XLK) and Consumer Discretionary (XLY) doing all the heavy lifting as most other S&P sectors are lower to start the day. Shares of TSLA lifting the XLY sector, rising over 14% following earnings results that missed\/came in well below last year numbers, but positive comments on Robotaxis and launching a more affordable model that can be produced on the same manufacturing lines helped sentiment. Tech is higher behind a spike in semiconductors (SOX +2.3%) after TXN results beat, helping analog\/auto chip names. Tech also awaits META; IBM earnings results this afternoon. No big sector losers on the day, with modest losses for Materials (for a 2nd<\/sup> day), Energy, Staples, and Healthcare. Lone piece of U.S. economic data was in-line with consensus (Durable Goods), ahead of GDP data tomorrow and the PCE inflation report on Friday. Treasury yields near morning highs 4.66% for the 10-yr (where it was prior to yesterday\u2019s decline on PMI data), while the dollar bounces and gold fall a 3rd<\/sup> day after recent record highs. No Fed speakers still until next week FOMC meeting results. Dow Transports are down over 2.5%, led by weakness in ODFL, NSC, HA after earnings\/commentary\/guidance for each disappointed. Other big earnings tonight expected from CMG, LRCX, NOW, VKTX. <\/p>\n

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Economic Data<\/p>\n

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  • March Durables orders rose +2.6% vs. consensus +2.5% and vs Feb +0.7%; Durables ex-transportation orders +0.2% (consensus +0.3%) vs Feb +0.1%; March Durables ex-defense orders +2.3% vs Feb +1.5% (prev +2.1%); March nondefense cap orders ex-aircraft +0.2%, (cons +0.2%) vs Feb +0.4% (prev +0.7%).<\/li>\n<\/ul>\n<\/div>\n

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    Macro<\/span><\/p>\n<\/td>\n

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    Up\/Down<\/span><\/p>\n<\/td>\n

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    Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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    WTI Crude<\/span><\/b><\/p>\n<\/td>\n

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    -0.41<\/span><\/p>\n<\/td>\n

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    82.95<\/span><\/p>\n<\/td>\n<\/tr>\n

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    Brent<\/span><\/b><\/p>\n<\/td>\n

    		\n

    -0.35<\/span><\/p>\n<\/td>\n

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    88.07<\/span><\/p>\n<\/td>\n<\/tr>\n

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    Gold<\/span><\/b><\/p>\n<\/td>\n

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    -7.90<\/span><\/p>\n<\/td>\n

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    2,334.20<\/span><\/p>\n<\/td>\n<\/tr>\n

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    EUR\/USD<\/span><\/b><\/p>\n<\/td>\n

    		\n

    0.000<\/span><\/p>\n<\/td>\n

    		\n

    1.0699<\/span><\/p>\n<\/td>\n<\/tr>\n

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    JPY\/USD<\/span><\/b><\/p>\n<\/td>\n

    		\n

    0.15<\/span><\/p>\n<\/td>\n

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    154.96<\/span><\/p>\n<\/td>\n<\/tr>\n

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    10-Year Note<\/span><\/b><\/p>\n<\/td>\n

    		\n

    0.06<\/span><\/p>\n<\/td>\n

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    4.658%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    Sector Movers Today<\/p>\n

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    • In Online travel\/Lodging: ABNB<\/b> was upgraded to Buy from Neutral at Mizuho and raised tgt to $200 from $150 saying the potential launch of sponsored listings is expected to generate double-digit EBITDA upside over the long-term. In Hotels, HLT<\/b> Q1 results were mixed as EPS beat but revs of $2.57B missed the $2.93B estimate while reports revenue per available room, a hotel’s top-line performance metric, rose 2% year-on-year to $104.16 in Q1 and raised its outlook.<\/li>\n<\/ul>\n<\/div>\n
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      • In Toy Retail: MAT <\/b>reported a smaller-than-expected loss for Q1 (-$0.05 vs. -$0.12 est.) while Q1 sales of $809.5M missed the consensus of $831.8M but reaffirmed its full-year sales and profit forecasts. HAS<\/b> shares also rallied behind results after posting a smaller-than-expected drop in Q1 sales and tops profit estimates on leaner inventories and steady digital gaming revenue ($0.61\/$757.3M topped ests $0.27\/$738M).<\/li>\n
      • In Oil Services: BKR<\/b> reported a 2% EBITDA beat and FCF was nicely above Street ests. IET was above the top end of the guide while OFSE was a touch below the midpoint. 1Q IET orders should give confidence in the annual order outlook of $11.5B – $13.5B. New energy orders were an impressive $239MM. WFRD<\/b> posted a beat and a guide-up, and WFRD posted the highest EBITDA margin in 15 years. ’24 EBITDA margins are now expected to be 25% vs these occurring in ’25. The 2Q guidance is above Street, and 2Q EBITDA margins should be ~25%.<\/li>\n
      • In Consumer Lending: ENVA<\/b> reported Q1 adjusted EPS upside of $1.91 (above ests) driven primarily by stronger-than-projected originations and ending loan balances, particularly for SMB; SYF<\/b> Q1 adj EPS $1.18 missed the $1.34 estimate; Q1 net interest income (NII) rose 8.7% to $4.41 billion from $4.05 billion but below ests $4.45B; said interest and fees on loans increased 15% to $5.3 billion.<\/li>\n<\/ul>\n

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        Stock GAINERS<\/p>\n

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        • BA <\/b>+2%; Q1 revenue of $16.57B tops estimates of $16.22B while posts smaller-than-expected loss of (-$1.13) vs. est. (-$1.76) noting the first quarter results reflect the immediate actions we\u2019ve taken to slow down 737 production to drive improvements in quality.<\/li>\n<\/ul>\n<\/div>\n
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          • BIIB<\/b> +6%; on EPS beat while Skyclarys sales of $78 million beat expectations and should assuage concerns about a slow commercial launch. Leqembi sales of $19 million were also better than the lowered expectations.<\/li>\n
          • BSX<\/b> +6%; boosted its 2024 adj EPS outlook to $2.29-$2.34 from prior forecast of $2.23-$2.27 after Q1 EPS\/revs topped consensus ($0.56\/$3.86B vs. est. $0.51\/$3.69B); Organic sales +13.1% y\/y, Cardiovascular sales +16.3% y\/y, Cardiology sales +17.9% y\/y, MedSurg sales +7.8% y\/y.<\/li>\n
          • RILY<\/b> +41%; shares jumped after filing its annual report with U.S. SEC after missing initial deadline of Feb. 29 as well as 15-day grace period; the firm said an independent investigation reached same conclusion as prior internal review that RILY was not involved\/knowledge of any alleged misconduct by former Franchise Group CEO Brian Kahn\/affiliates.<\/li>\n
          • TSLA<\/b> +13%; reported a sharp drop in Q1 revenue, deliveries, margins, and EPS from a year ago, but shares pushed higher overnight after the company said that it would introduce new models in late 2024\/2025 to be built on its existing production lines.<\/li>\n
          • TXN<\/b> +6%; reported in line at $3.66B, with JunQ guided up ~4% q\/q, in line but better than feared; for MarQ 1) Autos\/Industrial both down q\/q, seeing JunQ stabilizing Industrial trends, 2) 2024E Analog Pricing potentially down LSD% y\/y, as it noted vs up 5%\/15%\/15% in 2023\/22\/21.<\/li>\n
          • VRT<\/b> +11%; shares surge to record high after raises FY24 adj. EPS forecast to the range of $2.29-$2.35 from prior $2.20-$2.26 and sees FY sales $7.54B-$7.69B vs. prior $7.52B-$7.66B; comes after beating Q1 top\/bottom line saying strength in orders and acceleration of AI-driven demand boosted results.<\/li>\n<\/ul>\n

             <\/span><\/p>\n

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            Stock LAGGARDS<\/p>\n

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            • BG<\/b> -4%; as Q1 sales of $13.42B missed the $13.96B estimate, but better adj EPS; noted sales from company’s largest agribusiness segment falls to $9.74B from $10.85B y\/y; said rise in export volumes were offset by weak trading margin.<\/li>\n<\/ul>\n<\/div>\n
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              • ENPH<\/b> -1%; Q1 earnings disappointed due to lower demand in Q1 and Q2 on lower-than-expected revenues and an increasingly cautious outlook from lower underlying demand; but mgmt said see signs of a near-term trough; <\/li>\n
              • GD<\/b> -5%; Q1 EPS $2.88 missed the $2.93 estimate after failing to deliver any G700 jets while facing sustained supply chain challenges and higher input costs; Q1 revs topped expectations.<\/li>\n
              • HUM<\/b> -4%; quarterly profit beat but withdrew its 2025 profit forecast, which it had slashed to $22 and $26 per share from $37 in January, citing more uncertainties.<\/li>\n
              • MAS<\/b> -5%; Q1 sales missed while EPS beat; said Q1 North American sales in fell -2% while international sales fell -5%, hurt by soft demand in key markets of Europe and China.<\/li>\n
              • ODFL<\/b> -9%; selling accelerated following conference call comments about revs after in-line Q1 results.<\/li>\n
              • TAP<\/b> -1%; was downgraded to sell from neutral at Citigroup saying repeating a record 2023 may be tough.<\/li>\n
              • UBER<\/b> -3%; along with early weakness in LYFT <\/b>after Elon Musk talked up the TSLA<\/b> robotaxi concept on the company conference call last night.<\/li>\n<\/ul>\n<\/div>\n

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