Tuesday, May 4, 2021

Markets fall as more earnings are reported

Dow dropped 320, decliners over advancers 5-2 & NAZ sank 372.  The MLP index was even in the 177s & the REIT index fell 1+ to the 429s following recent strength.  Junk bond funds inched higher &Treasuries were purchased.  Oil rose to the 65s & gold was steady at 1791.

AMJ (Alerian MLP index tracking fund)

CL=FCrude Oil65.04
+0.55+0.9%







GC=FGold   1,793.00
+1.20+0.1%





 

 




3 Stocks You Should Own Right Now - Click Here!

Pfizer (PFE) significantly increased revenue projections from its Covid-19 vaccine for the year, as sales from the shot in Q1 lifted the company to a stronger quarterly profit.  Its vaccine, the most widely distributed of the 3 that have been authorized for use in the US, contributed revenue of $3.5B in Q1 as the US vaccination campaign kicked into high gear.  Over the course of the full year, PFE expects the vaccine to generate $26B in sales after its previous forecast of $15.  Rising vaccine sales joined better results across the company's portfolio of drugs to boost revenue overall.  Total revenue for Q1 came in at $14.6B, climbing 45% year over year.  Stripped of one-time items, adjusted EPS was 93¢.  The forecast was for adjusted EPS of 78¢ on sales of $13.6B.  Higher vaccine sales boosted PFE's outlook for the full year.  The company now expects total revenue of $70.5-72.5B in 2021, with an adjusted EPS of $3.55-3.65 a share.  Its previous revenue forecast had guided for sales of $59.4-61.4B, with adjusted EPS of $3.10-3.20.  The stock rose 10¢ in a down market.
If you would like to learn more about PFE, click on this link:
club.ino.com/trend/analysis/stock/PFE?a_aid=CD3289&a_bid=6ae5b6f7

SHOT IN THE ARM: Pfizer’s COVID-19 vaccine lifts quarterly results

The US trade deficit hit a fresh record high in Mar as US consumers flush with gov cash spurred a continuing demand for foreign-made goods.  With a new round of $1400 stimulus checks pouring in & the domestic economy continuing to show substantial improvement, the imbalance in goods & services with the rest of the world swelled to $74.4B, the Commerce Dept reported.  That's the highest level ever in a data series that goes back to 1992 & represents a 57.6% increase from the same period a year ago & higher than the $70.5B in Feb.  The trade imbalance with China increased more than 22% to $36.9B & the deficit with Mexico rose 23.5% to $8.4B.  Exports actually increased for the month, rising $200B (6.6%)  But that was offset by a continued demand for imported goods, which increased 6.3% or $274B.  The deficit has risen nearly 10% in 2021 alone & has exploded from the $47B level in Mar 2020, just as the US was entering the early days of the Covid-19 pandemic.  Imports in 2021 have increased by 8.5% while exports have fallen 3.5%.  For Mar, imports rose the most in consumer goods, which increased $4.5B, including a $1.2T rise in textile apparel & household goods.  Industrial supplies & materials imports rose $3.7B & capital goods were up $3.3B.  Industrial supplies & materials led exports with a $5.2B increase, while capital goods were up $2.9B & consumer goods rose $2B.

U.S. trade deficit surges to new record; shortfall with China keeps rising

Under Armour's (UA) raised its sales & profit outlook for the full year, as the sports apparel maker sees demand for its brand roaring back with shoppers returning to its stores.  It reported Q1 sales growth of 35%, topping expectations.  The company is lapping a period a year earlier, when its stores were temporarily shut & UA had to turn to layoffs & other cost-cutting measures to fight through the health crisis.  “On a two-year stack, that is skipping over 2020, we’re running a better, higher quality and more profitable business,” CEO Patrik Frisk said.  EPS grew to 17¢, compared with a loss of $1.30 per share a year earlier.  Excluding one-time charges, EPS was 16¢, better than the 3¢ that analysts was expected.  Sales rose to $1.26B from $930M a year earlier & beating estimates for $1.13B.  In its Q2, Under Armour said sales should rise upwards of 70%, led by the strongest growth in North America & Latin America, as the company laps additional pandemic-related closures in 2020.  It's calling for 2021 adjusted EPS to be 28-30¢, compared with a prior projection of 12-14¢.  The analyst is for 20¢.  The stock fell 46¢.
If you would like to learn more about UA, click on this link:
club.ino.com/trend/analysis/stock/UA?a_aid=CD3289&a_bid=6ae5b6f7

Under Armour hikes full-year outlook, sees demand back

Gloom is the main emotion for traders today although demand for gold, the classic safe haven investment, is limited.  Inflation fears are not going away & thoughts of massive gov spending while the economy is doing reasonably well makes investors nervous.

Dow Jones Industrials

 






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