My top 10 things to watch Wednesday, April 19
- club outfit Morgan Stanley (MS) beat the top and bottom lines in the first quarter. Earnings per share (EPS): $1.70 per share vs. $1.62 according to Refinitiv estimate. Revenue of $14.52 billion versus an estimate of $13.92 billion. Should the stock fall by more than 4%? No. Morgan Stanley only missed one small position. But provision for credit losses $234 million versus $98.2 billion.
- Goldman Sachs (GS) Controversial quarter defended by some but not others after an erratic quarter on Tuesday. The Dow stock falls again. My central thesis remains that Goldman tried to be everything to everyone, and it’s not about how much money it costs to run Marcus, the Apple credit card, wealth management and yet have a monstrous investment banking and mergers and acquisitions apparatus that does not look good at the time. It’s not the bank at the moment.
- THE DowTHE S&P500 and the Nasdaq open lower on Wednesday, a day after a relatively flat session. Bond yields are up on Wednesday. Oil prices are broken. You’re here (TSLA) is the big earnings report after the bell.
- Late Tuesday, netflix (NFLX) released its quarter. Stocks fell badly initially, but may still have been one more false indicator of this earnings season. EPS: $2.88, two cents above estimates. $8.16 billion vs $8.18 billion expected. Netflix has delayed rolling out its crackdown on password sharing. Wedbush adds to the list of betting ideas. UBS upgrades to buy.
- Bank of America increases Nvidia (NVDA) price target at $340 from $310. Maintains the buy rating. Piper Sandler claims that the Club holding’s product line will provide her with outsized and consistent growth for centuries. Piper reiterates its overweight (buy) rating and $300 per PT share.
- UBS launches oil services giant and holding company Club Halliburton (HAL) with a buy rating and price target of $49 per share. Analysts have our two oil and natural gas exploration and production companies Pioneer of natural resources (PXD) and Coterra Energy (CTRA) as neutral with price targets of $238 per share and $27 per share, respectively.
- Morgan Stanley research analysts raise their price target on Johnson & Johnson (JNJ) at $183 per share from $179. They say the issues that sent J&J shares tumbling Tuesday after bumper earnings aren’t significant.
- club outfit Apple (AAPL) Earnings Insights: JPMorgan raises share price target to $190 per share from $175 ahead of quarterly results, which are scheduled for release May 4. UBS also likes Apple. But both companies with really lukewarm endorsements and nothing more. I don’t like these because they aren’t based on anything.
- walmart (WMT) upgraded to buy from Gordon Haskett. Inflected traffic. Increased share of wallet. Analysts are raising the price target to $165 per share from $155.
- Mortgage applications to buy a home fell 10% from the previous week due to a slight rise in rates. Refinancing requests fell by 6%. Average contracts for 30-year fixed rate mortgages fell from 6.3% to 6.43%.
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