Run the numbers
We’re almost halfway through earnings season, and nervous investors are scouring corporate earnings for guidance after inflation, geopolitics and other worries. the market was dragged down last month. However, it’s been a different story for the past few days, when high earnings reports have calmed nerves.
Futures expect the stock to rise for a fourth day in a row, as headlines from major companies opening their books to investors are mostly positive:
Alphabet said its fourth-quarter profit 36 percent increase, to $20.6 billion. Its shares rose 10% in pre-market trading, a move worth nearly $200 billion in market capitalization.
Exxon Mobil earned $8.9 billion in the fourth quarter, a strong reversal from its $20 billion loss a year ago, driven by higher energy prices. Its shares rose 6% yesterday following the report.
GM reported a sharp drop in fourth-quarter profit, but 55 percent jump annual income for 2021, to a record $10 billion. Its shares rose 2% in pre-market trading.
Starbucks indicates quarterly profit 31 percent increase at the end of last year, amounted to $816 million. Its shares fell nearly 3% in pre-market trading, as warnings of supply chain pressures weighed on the company.
UPS reported $3.1 billion in profit for the fourth quarter, Exceeded analyst expectationsand recorded an operating profit margin that was greater than it had been for many years. Its shares jumped 14% yesterday following the report, to a record high.
What is news: The shipping giant raised its dividend by nearly 50%, the biggest gain since going public, and said it would hit revenue and profit targets a year earlier than expected.
S&P 500 earnings are on track to grow for a fourth straight quarter above 20%, according to FactSet. That number is expected to slow to single digits in the coming quarters, but analysts also expect companies to gradually expand their profit margins, raking in more profits from each year. dollars generated in revenue.
Once optimists, analysts tracked by FactSet expect the S&P 500 to rise about 17% from current levels by the end of the year. Notable companies to report earnings next include Meta later today and Amazon tomorrow. Both of their stocks are trading higher in the money market.
THIS IS WHAT’S HAPPENING
Job opportunities increase despite the rise of Omicron. Employer posted 10.9 million open jobs in December, close to July’s record. This equates to about 1.7 job openings for each unemployed worker, the highest since the United States began tracking.
https://www.nytimes.com/2022/02/02/business/dealbook/earnings-alphabet-exxon-ups.html Corporate profits rise at Alphabet, Exxon, UPS and more