Market Awaits JOLTS Report
Although the month of August is generally one of the lightest for the stock market, in terms of trading volume, etc., in the early part of the month we’re in the thick of Q2 earnings season. And, while we’re not seeing the most stellar of quarters (compared to, say, the Great Reopening of 2021), we’re far better off than the analysts who fully expected we’d be mired in a recession by now.
Economic prints for today will consist of a new Job Openings and Labor Turnover Survey (JOLTS) and Construction Spending, both for June, and S&P PMI Manufacturing and ISM Manufacturing results, both for July. Ahead of the opening bell, major indices are in the red: the Dow is -72 points, the S&P 500 -19, the Nasdaq -88 and the Russell 2000 -10 points. Over the past week of trading, these indices are up marginally, and up between +2.5% (S&P) and +4.8% (Russell) over the past month.
Uber UBER reported Q2 results this morning, which were mixed on headline but which have generated a +4% surge in share price among early traders. Earnings of 18 cents per share easily outpaced the -$0.01 per share, and worlds ahead of the -$1.33 per share reported in the year-ago quarter. However, revenues of $9.23 billion, while +14% year over year, are down from the $9.32 billion in the Zacks consensus.
Under the hood, Uber passed a couple milestones in the quarter: the company’s first GAAP operating profit and the first time its free cash flow registered over $1 billion. Year over year gross bookings boasted strong numbers: Mobility (ride sharing) +25% and Delivery +12%. This has helped keep Uber a strong lead over competitors such as Lyft LYFT. And shares of Uber are now over +100%, year to date.
Big Pharma staple Pfizer PFE also posted mixed numbers for its Q2 earnings report this morning: earnings of 67 cents per share were well ahead of the 56 cents anticipated (though still down big from the $2.04 per share reported a year ago), while sales in the quarter of $12.73 billion is notably beneath the $13.17 billion in the Zacks consensus. Guidance for the full year, on both top and bottom lines, currently have ranges where the existing Zacks consensus estimates are directly in the middle.
JetBlue JBLU squeaked out an earnings beat by a penny in Q2 this morning: 41 cents per share versus 40 expected. Revenues came exactly in-line with expectations at $2.61 billion. This officially marks the third straight quarter of a positive earnings surprise, and swinging into the green for the trailing four quarters. Yet its lower-than-expected next-quarter earnings guide is a tad beneath the Zacks consensus, which has helped the stock tumble -6.7% in early trading.
Staying on the Travel & Leisure side another moment, Norwegian Cruise Lines NCLH shares are down -10% ahead of the opening bell on Q2 results that were lower than investors were looking for: earnings of 20 cents per share missed the 27 cents anticipated (though still well up from the abysmal -$1.14 per share in the year-ago quarter) on record-high sales of $2.2 billion in the quarter, beating estimates for $2.18 billion. But guidance for both next quarter and full year earnings disappointed. Typically, Q3 is the most profitable for companies in Norwegian’s industry.
After the close, Advanced Micro Devices AMD will be the latest important tech stock reporting will join Starbucks SBUX, among many others, with Q2 output.
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