All eyes were on the S&P 500 yesterday, as it closed at an historic high, breaking through the previous high of 2940. The Nasdaq also closed at a record high, and it has fared the best so far this year. All the major indices have had stellar performances year to date.
- Nasdaq Composite +22.4% YTD
- Russell 2000 +17.5% YTD
- S&P 500 +17.0% YTD
- Dow Jones Industrial Average +14.3% YTD
S&P 500 Index
Communication Services (XLC)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Health Care (XLV)
Real Estate (XLRE)
Earnings continues to buoy the markets higher, and it appears to be the case again this morning as several big names have reported. Results are mixed, and as I have said, it’s worrisome that revenues are falling short, while EPS continues to rock.
- Anthem (ANTM) beat on EPS of $6.03, revenues were in line at $24.39 billion, and the company raised guidance for FY19.
- AT&T (T) beat on EPS of $0.96, revenues missed despite rising 17.8% year over year.
- Boeing (BA) missed on the top and bottom line, with revenues at $22.92 billion and EPS of $3.16. The company is suspending its full-year guidance based on the uncertainty surrounding the 737 Max, however it said it's making "steady progress" on the software update.
- Biogen (BIIB) beat on top and bottom line, with revenues up 11.5% to $3.49 billion, and EPS of $6.98.
- Caterpillar (CAT) beat on EPS by $0.08, to $2.94, revenues were in line, up 4.7% y/y to $13.47 billion, and the company reaffirmed FY19 guidance.
- eBay (EBAY) beat on the top and bottom-line estimates, EPS $0.67 and revenues of $2.64 billion and guided Q2 EPS above consensus.
- Snap (SNAP) beat on the top and bottom line, EPS -$0.10, revenues soared 38.9% y/y to $320.43 million and guided in-line for Q2.
- Stanley Black & Decker (SWK) beat on EPS of $1.42, revenues of $3.33 billion were in-line, and raised guidance for the FY19.
- Texas Instruments (TXN) beat on EPS of $1.22, revenues declined 5.1% y/y to $3.59 billion, issued inline guidance for Q2.
Perhaps, the news of the morning is Occidental Petroleum’s (OXY) bid to acquire Anadarko Petroleum (APC) for $76/share, in a 50-50 cash and stock deal ($38 is in cash and 0.6094 shares of OXY). This offer is a 20% premium to Chevron's (CVX) previous bid.
The major indices are now indicating a slightly positive open. Let’s see if we can get follow through on yesterday’s performance.