10 things to watch for Tuesday April 16
- The stock market is trying to stabilize after a few straight bad days as attention turns to corporate earnings, which are mostly positive on Tuesday. Here are 4 ways we manage volatility at the Club.
- Big rhythm for Morgan Stanley. Revenue of $15.14 billion beat the estimate by $14.46 billion, and earnings per share (EPS) of $2.02 beat the estimate by $1.66. Return of approximately 20% on tangible equity. On behalf of the Club, trading and investment banking (IB) revenues were better than expected. The same goes for wealth management (WM) and the pre-tax margin was also a little better than expected. Brought in approximately $95 billion in net new assets. Share buyback for $1 billion. Need to hear about the WM probe.
- Bank of America completes the series of good quarters for banks. Revenue topped and adjusted EPS of 83 cents beat estimates by 76 cents. Return on tangible common equity 12.7%. Net interest income (NII) was higher than expected. IB’s revenues are better than expected.
- A strong quarter for Johnson & Johnson. Sales miss slightly but EPS beats. Raises lower end of EPS forecast by 5 cents. Organic revenue growth up 7.7%. Pharma up 8.3% and Medical Devices up 6.3%.
- UnitedHealth Group are revenues better than expected. Revenue up nearly 9% to $99.8 billion, surpassing $99.21 billion, despite the fallout from a cyberattack against its subsidiary Change Healthcare. Cost ratio better than expected. Adjusted EPS of $6.91 beats $6.59. Supports the outlook for the full year.
- Club name Honeywell is downgraded instead of being purchased from Deutsche Bank due to sluggish growth prospects. This is why CEO Vimal Kapur needs to reshape the portfolio.
- Barclays double upgrade Tyson Foods from overweight (buy) to underweight (sell).
- Evercore ISI initiates coverage on a handful of semis. Love everything about their cover except Intel And Qualcomm. Favors club names Nvidia And Broadcom as well as advanced micro-devices and Wonderful in parallel processing and Texas Instruments, Analog devices, Microchip technology And NXP Semiconductors in the Internet of Things.
- JPMorgan reiterates Uber as well as the names of the clubs Amazon And Metaplatforms as its top picks across the internet heading into earnings season.
- Goldman starts hedging DraftKings with a purchase and price target of $60 per share. Analysts call it a revenue generator with a growing total addressable market (TAM) and swinging profits.
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