Top Stock Market News for Today April 20, 2022


Stock market futures flat as stocks cool after Tuesday’s rally

US Stock Futures are moving sideways heading into Wednesday’s trading session this week. All in all, this seems to be part of the ongoing volatility that investors continue to see in the stock market right now. After yesterday’s rebound, it’s not too surprising. After all, even if earnings continue to rise, there is no clear indication of how the companies have performed this quarter. On one side you have oil giants like Halliburton (NYSE: HAL) posting solid gains yesterday. In detail, the company’s net profit for the quarter rose 54.7% year-over-year.

On the other hand, however, banks such as JP Morgan (NYSE: JPM) reported less than ideal numbers last week. The leading investment bank reported losses of $524 million due to market disruptions stemming from Russian sanctions. On top of that, JPMorgan also saw its quarterly profit drop 42% year-over-year. Looking ahead, the bank is currently anticipating “major geopolitical and economic challenges ahead,due to soaring inflation. Although not all companies are created equal and operate in the same space, volatility remains endemic.

Talking about all this is Interactive Brokers (NASDAQ: IBKR) Chief Strategist Steve Sosnick. He notes that yesterday’s gains are arguably the volatility of the “good direction,Sosnick goes on to say, “But we will have to get used to larger movements in both directions. And not just one-day moves, but sort of multi-day errands. Because of all this, investors could probably watch the markets closely in the weeks to come. As of 6:04 a.m. ET, Dow futures are up 0.01%. Meanwhile, S&P 500 and Nasdaq futures are trading down 0.07% and 0.21% respectively.

Netflix and No Chill: Dwindling Subscribers Send NFLX Stocks Down

To start, netflix (NASDAQ: NFLX) is at the center of today’s stock market news cycle. Overall, that would be after Netflix’s latest quarterly financial update. In it, the streaming industry titan posted earnings of $3.53 per share on revenue of $7.87 billion. For reference, that would be against Wall Street expectations of $2.89 and $7.93 billion respectively. At first glance, these results seem solid overall. Despite all this, investors are likely focused on Netflix’s latest update on its total subscriber count.

Diving into it, Netflix lost 200,000 subscribers in the first fiscal quarter. This would mark the company’s first decline in the number of paid users since October 2011. Additionally, the company also expects that number to increase tenfold to 2 million global paid subscribers lost in the quarter. In progress. Netflix provides more information on the current state of the business. The company writes: “Streaming is trumping linear, as we predicted, and Netflix titles are hugely popular around the world. However, our relatively high household penetration – if you include the large number of households sharing accounts – combined with competition, creates headwinds for revenue growth.“On this front, the company plans to crack down on households sharing passwords with additional fees.

Additionally, Netflix is ​​also considering more accessible subscription plans. This would come in the form of more affordable ad-supported plans. According to CEO Reed Hastings, the company supports “consumer choice and enabling consumers who wish to benefit from a lower price and who are tolerant of advertising.“Nevertheless, NFLX stock will likely be in the spotlight today.

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Tesla Earnings Snapshot: Things to Consider

You’re here (NASDAQ: TSLA) will likely be front and center for investors watching for today’s best stock market results. For the most part, this leading electric vehicle (EV) company already enjoys a major presence both on and off the stock market. However, it is important to note that the company is coming off of a rather solid year in terms of performance. Heading into the current fiscal year, Tesla, like many other companies, continues to face increasing supply chain pressures and inflation.

Either way, here’s what Wall Street expects for the company’s upcoming earnings call. In detail, current forecasts point to earnings of $2.31 per share on revenue of $17.9 billion. If so, that would translate to year-over-year gains of around 148% and 72% respectively. Namely, these estimates are likely the result of Tesla’s rapid manufacturing capacity expansion initiatives. Among the most recent examples is the opening of its Giga Berlin factory last month. For a sense of scale, Tesla expects the plant to eventually boast an annual production rate of 500,000 vehicles.

It’s worth mentioning that there’s also continued back and forth between Tesla CEO Elon Musk and Twitter (NYSE: TWTR) to consider as well. Following his $43.4 billion takeover bid for the social media company, investors might wonder how Musk will finance the purchase. Safe to say, there will certainly be no shortage of coverage on Tesla’s earnings today. As such, the TSLA stock might be worth watching.

TSLA Stock
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Bank Of America CEO Brian Moynihan Talks Consumer Spending Now

In other news, Bank of America (NYSE: BAC) CEO Brian Moynihan recently provided a notable update on consumer spending. Speaking in an interview with CNBC’s Jim Cramer, Moynihan notes that Americans continue to spend big. This is surprising given that skyrocketing inflation continues to manifest itself in most facets of daily life. According to BofA, average US consumer spending in March 2022 was up 13% year over year. In turn, Moynihan notes that the first few weeks of April saw that number rise another 5%.

With this in mind, current concerns about shrinking consumer balance sheets may ease slightly. Moynihan also advises, “Don’t fight the American consumer. They are a very strong force and you can see them looking very healthy. Their loan balances are down, they have a great capacity to borrow and a great capacity to spend.“On the one hand, this would be supported by BofA’s earnings yesterday, fueled by the strong credit quality of its borrowers.

Action BAC
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IBM in focus after beating upper and lower earnings estimates in quarterly update

Another company worth noting now would be International Business Machinery (NYSE: IBM) or IBM, for short. Essentially, IBM is looking at overall healthy numbers in its latest financial release. The company’s earnings per share for the quarter were $1.40, beating consensus guidance of $1.38. At the same time, it posted total revenue of $14.2 billion, beating analysts’ estimates of $13.85 billion. Notably, this also marks IBM’s first full quarter without its Kyndryl infrastructure services arm.

Among the main growth drivers for the quarter were IBM’s consulting revenues. The likes of which rose 13% year over year, totaling $4.83 billion and beating Wall Street expectations of $4.6 billion. Looking ahead, the company is raising its forecast for the current fiscal year. As things stand, IBM expects revenue growth in the high end of its single-digit estimate. As such, IBM stock could turn heads in the stock market today.

IBM stock
Source: Trading View

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Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]

Midam Ventures, LLC | (305) 306-3854 | 1501 Venera Ave, Coral Gables, FL 33146 | [email protected]


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