Presented By | | Good morning. It's October 22nd, and today we'll look at mixed results from Verizon and GM, while 3M's stock is surging upon strong Q3 earnings and full year forecast. |
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| Previous Close 📈 | | Stocks declined yesterday, with the Dow falling over 344 points (0.8%) after three consecutive winning sessions. Investor focus remains on third-quarter earnings, with around 14% of S&P 500 companies reporting so far and more than 70% beating estimates. | Futures | U.S. stock futures are lower today as Wall Street braces for another day of losses. Dow futures are down 159 points (0.4%), S&P 500 futures are off by 0.4%, and Nasdaq-100 futures have slipped 0.6%. | Investors are closely monitoring earnings reports from major companies, including 3M, Lockheed Martin, General Motors, and Verizon. |
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| | | | What to Watch | Several companies will announce their quarterly earnings this morning before the market opens, including GE Aerospace (NYSE: GE), Danaher Corporation (NYSE: DHR), Philip Morris International (NYSE: PM), Verizon Communications (NYSE: VZ), RTX Corporation (NYSE: RTX), Lockheed Martin (NYSE: LMT), Fiserv (NASDAQ: FI), Sherwin-Williams (NYSE: SHW), and Moody's (NYSE: MCO). | On the economic calendar, Philadelphia Fed President Patrick Harker is scheduled to speak at 10:00 a.m. ET. | Texas Instruments Incorporated (NASDAQ: TXN) will report its earnings after the market closes today. |
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| | Technology | Verizon's 5G Offers Drive Strong Subscriber Growth, But Revenue Misses Estimates | | Verizon reported stronger-than-expected wireless subscriber growth in the third quarter, thanks to its flexible 5G plans and promotional bundles with streaming services. | The telecom giant added 239,000 net postpaid wireless subscribers, surpassing the anticipated 218,100, as consumers took advantage of the company's customizable myPlan, which includes options like Disney+, Hulu, and Max for an additional fee. | Despite this growth, Verizon's total revenue for the quarter is coming in at $33.3 billion, slightly below analysts' expectations of $33.43 billion. The revenue shortfall was primarily due to a decrease in wireless equipment sales, with consumers cutting back on phone upgrades amidst rising interest rates. | In premarket trading, Verizon is falling by more than 1%. | Verizon's fixed wireless service is seeing a boost, adding 363,000 customers, bringing its total to nearly 4.2 million, ahead of its initial target. | However, the company's net income dropped to $3.4 billion from $4.9 billion last year, impacted by $1.7 billion in severance costs related to voluntary staff reductions. | With competitors AT&T and T-Mobile set to report their third-quarter earnings this week, Verizon continues to lead the market in subscriber growth despite ongoing challenges in the wireless sector. |
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| | Automobiles | GM Beats Expectations With $3 Billion Q3 Profit Amid Global Challenges | | General Motors announced a $3 billion profit for the third quarter today despite facing a decline in U.S. sales and losses in its Chinese joint venture. | The automaker's revenue has climbed to $48.8 billion, marking a 10% increase from the same period last year, buoyed by steady vehicle prices in the U.S. at over $49,000 on average. | Although overall U.S. sales fell by 2.2%, GM offset this drop with a 3% rise in individual sales, its most profitable segment. | Chief Financial Officer Paul Jacobson credited resilient consumer demand and stable economic conditions, highlighting the Federal Reserve's efforts to reduce interest rates. | In China, GM's joint venture recorded a $137 million loss, down from a $192 million profit a year ago, attributed to intensified competition from domestic brands. GM is working with partner SAIC to restructure the venture and improve performance. | GM exceeded Wall Street expectations with an adjusted profit of $2.96 per share, beating the forecast of $2.38. Shares are up by about 1% in premarket trading. | The company also raised the lower end of its full-year profit guidance, now anticipating net income between $10.4 billion and $11.1 billion. |
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| | Manufacturing | 3M Revises Profit Guidance Following Improved Third-Quarter Earnings and Full Year Forecast | | This morning, industrial giant 3M revised its full-year adjusted profit expectations, increasing the lower end of its forecast. | The revision comes as the company anticipates heightened consumer demand, following the Federal Reserve's decision to lower borrowing rates in September. | In premarket trading, 3M shares are surging by nearly 2.5%. | The Minnesota-based company, best known for its iconic Post-it products, is also reporting an 18% increase in quarterly profits, attributing the growth to strategic cost-cutting measures that helped balance sluggish performance in its consumer division. | For the third quarter, 3M posted an adjusted profit of $1.98 per share, up from $1.68 per share a year ago. | The company adjusted its full-year profit outlook to now range between $7.20 and $7.30 per share, compared to its prior estimate of $7.00 to $7.30 per share. | This optimistic forecast reflects 3M's expectation that the easing of borrowing costs will further stimulate consumer spending and boost sales across its diverse business segments. |
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| | | | Movers and Shakers | | Genprex [GNPX] - Last Close: $1.51 | Genprex is up over 135% in premarket trade today. | The clinical-stage gene therapy company has received positive progress in its Acclaim-3 clinical trial. | The trial is testing Reqorsa Gene Therapy, combined with Tecentriq, to treat extensive stage small cell lung cancer (ES-SCLC). | A Safety Review Committee has given approval to move to the highest dose level after earlier phases showed a favorable safety profile. | My Take: Genprex has lost 83.87% of its value YTD and has poor financial indicators. It would be best to keep this stock on your wait-and-watch list and observe it for further action. |
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| Urgently [ULY] - Last Close: $0.65 | Urgently's stock has risen by 49% before the opening bell today. | The firm announced a major two-year contract renewal with a global car rental company recently. | This deal, extending their partnership until 2026, reflects the rental company's satisfaction with Urgently's roadside assistance technology and services. | My Take: The stock has dropped by more than 70% year to date. The recent contract renewal could have a positive impact, but it would best to remain cautious on this stock for now. |
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| Genuine Parts Company [GPC] - Last Close: $143.12 | Genuine Parts Company shares are tanking by over 10% in premarket trading today. | The company reported disappointing third-quarter results and revised its full-year outlook. | The company posted $6.0 billion in sales and adjusted diluted earnings per share (EPS) of $1.88, which fell short of its previous projections. | More concerning to investors is the downward revision of its 2024 full-year outlook; revenue growth is now expected to be between 1% and 2%, down from the previous forecast of 1% to 3%. | Additionally, the company lowered its EPS forecast from $9.30–$9.50 to $8.00–$8.20. | My Take: GPC has had a rough time lately but is a solid stock. It might be worth keeping an eye on for long-term growth. |
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| | Everything Else | Kimberly-Clark's Q3 sales missed estimates, prompting a reduced growth outlook. SAP's cloud sales surged 25%, boosting its stock to an all-time high. Hyundai's India IPO struggled on its first day, signaling mixed investor sentiment in the auto sector. Increased defense demand and aircraft repairs prompt RTX to upgrade 2024 financial forecasts. US Supreme Court boosts NRA in its free speech fight with a New York official. Germany moves forward with its €19 billion hydrogen grid to support decarbonization efforts. China races to export EVs to Europe before tariffs take effect in October. Falling interest rates drove profit for Norway's US$1.8 trillion wealth fund in Q3. GE Aerospace posted mixed Q3 Results, with EPS above and revenue below estimates, causing shares to drop 4% in premarket trade.
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| | That's all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia
Elite Trade Club |
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