Wall Street cautious, with the Dow Jones breaking new records, reporting a positive trend for the fourth consecutive session, albeit to a limited extent (the price list is just + 0.08%) after 4pm Italian time.
Yesterday the price list reported a new record both for closing and at the intraday level. Intraday and closing record also for the S&OP 500, in progress for the ninth session of the last ten. The S&P 500, which is currently in plaster, also tested its 70th intraday record of 2021 and the 57th closing record of the year.
Nasdaq Composite up 0.20%, supported in particular by the increases of Microsoft, in the aftermath of the publication of the financial statements, but weighed down by stocks like Twitter and Robinhood.
Focus among the Big Tech on Facebook, with the stock which fell by 3.9% yesterday after the publication of the financial results, from which better than expected profits emerged, but a disappointing turnover and a number of monthly active users. The stock is still down, albeit slightly.
Alphabet is doing well, with the stock up by about 2.5%: the holding company to which Google is headed announced that it had reported better than expected profits and turnover in the third quarter of the year. Google has confirmed itself as the golden hen of the giant, with almost doubled profits and a turnover that, on a quarterly basis, reported record growth in 14 years, benefiting from the strong recovery in advertising revenue.
Overall, Alphabet eps came in at $ 27.99, compared to $ 23.48 expected by analysts interviewed by Refinitiv. Revenue was $ 65.12 billion, better than the expected $ 63.34 billion.
After the end of yesterday’s trading day on Wall Street, Twitter also released its balance sheet, which reported an adjusted loss of 54 cents per share in Q3 2021, while analysts were aiming for earnings per share of 15 cents. Revenues of 1.28 billion dollars were in line with expectations, up 37% compared to the same period of the previous year. Social media said the impact of Apple’s iOS changes “remained modest.” The company reached 211 million users in the quarter, an increase of 13% and an acceleration from the growth of 11% in the second quarter. But the stock falls by more than 8%.
Robinhood sinks by more than 11%, after the trading APP reported a turnover well below expectations, due, in particular, to the weakness of the cryptocurrency division.
Microsoft ended its third quarter (its first fiscal quarter) with profits above analysts’ expectations. In particular, earnings per share on an adjusted basis amounted to $ 2.27, compared to the $ 2.07 expected by analysts interviewed by Refinitiv. Revenue, up 22% year-on-year, was $ 45.32 billion, better than the estimated $ 43.97 billion. Revenue growth was the strongest since 2018. Regarding guidance, Microsoft said it expects revenue in the fiscal second quarter (fourth quarter of 2021) to be between $ 50.15 and $ 51.05 billion, for an average value of $ 50.15 to $ 51.05 billion. $ 50.60 billion, higher than the $ 48.92 billion expected by analysts. The stock is up by more than 3%.
Focus also on the chip maker AMD, which reported an eps, on an adjusted basis, of $ 0.73, better than the expected $ 0.67 and up 16% on an annual basis. Revenue stood at $ 4.31 billion, compared to an estimated $ 4.12 billion, up 54% year-on-year. The American giant has announced that it expects revenues of $ 4.5 billion for the fourth quarter of the year, higher than the $ 4.25 billion estimated by the consensus of analysts. The stock goes up by just over half a percentage point.
Today, a new round of earnings came ahead of the session, with several Dow Jones blue chips piling on their quarterly earnings. Boeing announced that it ended the third quarter of the year with costs up $ 1 billion, due to defects found in its 787 Dreamliners.
The group reported a net loss of $ 132 million in the quarter, down from the $ 466 million loss suffered in the third quarter of last year. Revenue rose 8% from $ 14.3 billion in Q3 2020 to $ 15.28 billion, thanks to growth in commercial aircraft sales and deliveries. The result, however, was less than the $ 16.3 billion expected by the consensus.
On an adjusted basis, the loss per share was equal to 60 cents, worse than the loss expected by analysts, much lower, equal to 20 cents per share. Title in slight loss.
General Motors title noted special on Wall Street after the Detroit auto giant announced it reported better-than-expected third-quarter earnings and revenue.
GM also announced that the results for the whole of 2021 will be in the “high part” of its previous guidance. Adjusted earnings per share came in at $ 1.52, much better than the expected 96 cents; revenue was $ 26.78 billion, slightly better than the estimated $ 26.51 billion; GM’s full-year guidance is adjusted earnings of between $ 11.5 and $ 13.5 billion, or between $ 5.70 and $ 6.70 per share, compared with net income of between $ 8.1 and $ 9, 6 billion. But the stock drops by more than 4%.
McDonald’s also did well on the Dow Jones, up by 2.5%, after the American fast food giant announced that it had concluded the third quarter of the year with better than expected profits and turnover, thanks to the recovery in international sales. Adjusted eps came in at $ 2.76, compared to $ 2.46 expected by analysts; revenue was $ 6.2 billion, better than the estimated $ 6.04 billion and up 14% year-on-year.
And Coca Cola is also advancing, + 2.7%, which announced that it has concluded the third quarter of the year with better than expected profits and turnover. The soft drinks giant has also revised its outlook on the year’s results upwards for the umpteenth time. In particular, the US giant benefited from the jump in sales of restaurants and cinemas, which had been sunk in 2020 due to the lockdown.
In the three months ended October 1, Coca Cola’s net earnings rose to $ 2.5 billion, or 57 cents per share, from $ 1.7 billion, or 40 cents per share, for the same quarter of 2020. Excluding extraordinary charges, earnings per share amounted to 65 cents per share, above the 58 cents per share expected by the consensus. Net sales were up 16% to $ 10.04 billion from $ 8.65 billion in Q3 2020, better than the expected $ 9.75 billion.