Stocks & Markets

The News

• MANUFACTURE – Phillips America
  • Philips ADRs surged 14% after reporting second-quarter earnings with comparable sales growth meeting revenue estimates.
  • Profit expectations were slightly missed, but a $1.1 billion settlement related to sleep apnea devices boosted investor confidence.

• FAST FOOD: McDonalds is selling less since 2020! MCD3.74%
  • People are eating less McDonald’s after sales fell for the first time since the end of 2020.
  • McDonald’s reported second-quarter earnings below analysts’ expectations.
  • Net income dropped by 12%.
  • The recent “$5 Meal Deal” promotion is expected to impact third-quarter earnings more significantly.
• BEVERAGES – Heineken sinking HEIA.NV -9.68%
  • Heineken shares dropped after missing profit growth expectations for the first half of the year.
  • The company reported a €95 million net loss due to an €874 million writedown of its stake in China Resources Beer.

Beer not selling

• TECH Microsoft doing great!
  • Microsoft will report fiscal fourth-quarter earnings after the closing bell today.
  • Analysts expect revenue of $64.37 billion, up 14.6% year-over-year, with net income projected at $21.88 billion.
  • Investors are keen to hear about the impact of AI developments, including partnerships with OpenAI and new Windows PCs designed for AI workloads, on future growth and profitability.

• SPORTS The Olympics impact
  • The Paris Olympics are benefiting local and global businesses, with Nike and Ralph Lauren launching athlete-focused products, Airbnb bookings surging, and Comcast achieving record ad sales.
  • The event is projected to boost Paris’s economy by $12.2 billion.

The Olympics going well for Paris economy

• AIRLINES – Delta Flights & Ryan Air doing not so well
  • Delta flights were canceled into Monday due to a global tech outage last week caused by a CrowdStrike update affecting Microsoft systems.
  • Ryanair‘s first-quarter profit fell 50% year-over-year, with fares down 15%.
  • Ryanair Airs Shares dropped over 17% and are now down almost 30% in 2024.
• MANUFACTURE – Doing better than expected: 3M
  • 3M shares surged 23% to a 52-week high following better-than-expected Q2 results.
  • The company reported adjusted earnings of $1.93 per share, exceeding the $1.68 estimate, and surpassed revenue expectations.
• AGRICULTURE – The sector is in decline
  • The agriculture sector declined in Q2, with only wheat and coffee prices rising.
  • Cocoa prices fell but remained up for the year; BCOM’s zero cocoa allocation avoided negative impact but missed out on 100% YTD returns.
  • Corn dropped 10%, and soybeans fell 5%.

Agriculture prices struggling to find a market

• US ECONMY – U.S. Economy Grew Faster Than Expected in Q2
  • U.S. economic activity in Q2 was stronger than expected, driven by robust consumer spending, increased government spending, and a large inventory build.
  • The Commerce Department’s initial estimate shows real GDP rose by 2.8% annualized, adjusted for seasonality and inflation, surpassing the forecast of 2.1% and the 1.4% rise in Q1.
• MICROCHIPS – Nvidia Stock Rebounds
  • Nvidia shares fell nearly 7% early Thursday, extending previous losses, but rebounded as investors bought the dip.
  • Despite recent declines, Nvidia is still one of the top-performing S&P 500 stocks this year, with a gain of over 130%.
• LUXURY – Hermes increasing revenue
  • Hermès outperformed other luxury brands during the demand slowdown, benefiting from its affluent clientele.
  • The company’s American depositary receipts rose following a strong second-quarter sales performance.
  • Revenue grew 13.3% at constant exchange rates, surpassing expectations.

• PHARMACEUTICALS – AbbVie share hit record high & J&J performance
  • AbbVie shares hit a record high due to strong sales of non-Humira drugs, such as Rinvoq and Skyrizi, which offset declining Humira revenue
  • Johnson & Johnson reported strong Q2 2024 financial results, driven by its pharmaceutical division, boosting many pharma stocks.
  • J&J announced a quarterly dividend of $1.24 per share, consistent with the previous dividend, with a forward yield of 3.28%.
• AEROSPACE – RTX going to the space! RTX 8.24%
  • RTX shares reached a record high following better-than-expected Q2 earnings and an increase in full-year guidance.
  • The boost was driven by strong sales from Raytheon, Pratt & Whitney, and Collins Aerospace, amid high demand and a large backlog.

Aerospace bets are doing great

• SOLAR – Sunpower attempts to recover from 72% losses
  • Last week was challenging for solar stocks, with SunPower plunging 72% in just two sessions.
  • On Monday, the stock rose 5% after halting shipments and leases.
  • Analysts downgraded SunPower due to balance sheet issues and delayed financial filings.
  • Shares remain down nearly 30% in 2024.
• AUTOS – Tesla and Ford dropping!
  • Tesla shares fell 12% after reporting weaker-than-expected Q2 earnings.
  • Tesla‘s Automotive revenue dropped 7% to $19.9 billion, and margins shrank.
  • Ford shares dropped 11% post-market after Q2 earnings missed estimates due to warranty issues.
  • Ford‘s Revenue beat expectations at $44.81 billion versus $44.02 billion expected.

TESLA and Ford may have over- bet?

• SEMICONDUCTORS – NXPI -7.58% NXP Semiconductors
  • NXP Semiconductors shares dropped before Tuesday’s opening bell due to a weaker-than-expected outlook, citing reduced automotive spending and rising geopolitical risks.
  • Watch the $248 level for potential support amid the post-earnings sell-off.