Retail financial services giant The Charles Schwab Co. (NYSE: SCHW) reported its first-quarter 2024 earnings in the wake of the market sell-off. Despite initially gapping down on the results, shares managed to stage a rally back up towards 52-week highs at $73.88. The financial services sector leader continued to see positive deposit inflows as net interest margin expanded 13 bps QoQ up to 2.02% thanks to greater margin balance utilization and outstanding balance supplementation funding decline. The company competes with retail brokerages like Bank of America Co. (NYSE: BAC), owned by Merrill Lynch, and Morgan Stanley (NYSE: MS), owned by E-Trade and Robinhood Markets Inc. .
Equity markets hovered at a one-week high on Wednesday, signaling the stock rebound may already be over. Interest rates impacted the market; the yield on the 10-year treasury returned to a multi-month high and may move significantly higher over the next few weeks. The economic data does not support the need for the FOMC to cut interest rates, as seen in the ten-year yield. The market had priced in a June or July cut; now it looks like September or later before the FOMC makes the first move.
The bond market is pricing in a later rate cut, and the equity markets the impact of higher rates on earnings. The outlook for 2nd half earnings is pegged to an interest rate cut that looks less likely than ever. Because it may be several months before the data cooperates enough to allow an interest rate cut, the sell-off in equities could last as long. In this scenario, a move below critical support targets near 4,820 is possible.
Retail financial services giant The Charles Schwab Co. (NYSE: SCHW) reported its first-quarter 2024 earnings in the wake of the market sell-off. Despite initially gapping down on the results, shares managed to stage a rally back up towards 52-week highs at $73.88. The financial services sector leader continued to see positive deposit inflows as net interest margin expanded 13 bps QoQ up to 2.02% thanks to greater margin balance utilization and outstanding balance supplementation funding decline. The company competes with retail brokerages like Bank of America Co. (NYSE: BAC), owned by Merrill Lynch, and Morgan Stanley (NYSE: MS), owned by E-Trade and Robinhood Markets Inc.
Norfolk Southern's first-quarter earnings report Wednesday gave the railroad the opportunity to publicly defend CEO Alan Shaw's strategy again before investors decide on May 9 whether to back him. Since the railroad already preannounced its disappointing results earlier this month when it disclosed a $600 million settlement over the disastrous February 2023 Ohio derailment there were few surprises in Wednesday's numbers.Norfolk Southern confirmed the $53 million, or 23 cents per share, that it earned in the first quarter. Without the settlement and some other one-time costs, the railroad said it would have made $2.39 per share while Wall Street was predicting earnings of $2.60 per share.
Lockheed Martin's (NYSE: LMT) stock price has trended higher for years, supported by robust defense spending and, more recently, conflict in Ukraine and the Middle East. The takeaway from the Q1 2024 earnings report is that business is good, very good, and that guidance is cautious. The Q1 outperformance may be a one-off; it may not persist through the year’s end, but it indeed suggests otherwise. Internal metrics show strength in the two segments whose products are most disposable: Rotary & Mission Systems and Missiles & Fire Control. Helicopters aren’t intended to be disposable, but missiles, drones, and logistics systems are.
Look 2023 kind of sucked from a trading standpoint…
Despite the market finishing 24% higher….
Just seven stocks did all of the work…
Unless you were holding or actively trading those 7 stocks, your trading year probably wasn't as fruitful as you had hoped…
According to my research, my new trading system would have spotted all seven of the "Magnificent stocks" MONTHS before they reached the highs they are trading at today.
Ford Motor Co.'s first-quarter net income fell 24% from a year ago as the company's combustion engine vehicle unit saw revenue and sales decline.The Dearborn, Michigan, automaker said Wednesday it made $1.33 billion from January through March, compared with $1.76 billion a year earlier.Excluding one-time items, Ford made 49 cents per share, enough to beat analyst estimates of 43 cents, according to FactSet.Revenue for the quarter was up 3.2% to $42.78 billion, but that fell short of Wall Street estimates of $42.93 billion. Ford Blue, the combustion engine unit, made $905 million before taxes, down $1.7 billion from a year ago.
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