My top 10 things to watch Tuesday, April 25
1. The Dow, the S&P 500 and the Nasdaq are set for a lower open. Stocks continue their holding pattern ahead of Big Tech earnings, which begin rolling in after the bell. Club holdings Alphabet (GOOGL) and Microsoft (MSFT) are out Tuesday afternoon. Cloud and artificial intelligence are big themes. Check out our commentary on what we expect this week from these mega-caps.
2. Club holding Halliburton (HAL) delivers a very, very strong first-quarter earnings beat: 72 cents per share versus 67 cents expected. Revenue exceeds estimates, too, with $5.68 billion. The CEO of the oilfield services giant says “customers are clearly motivated to produce more oil and gas and service capacity is tight.”
3. Club holding Danaher (DHR) beats on top and bottom line: Q1 adjusted earnings per share (EPS): $2.36 versus $2.26 expected. Revenue at the life sciences company: $7.17 billion versus $7.04 billion. Danaher lowers second-quarter and full-year guidance on core revenue growth to mid-single digits from high-single digits. Environmental and Applied Solutions (EAS) unit remains on track for Q4 separation.
4. Club holding Johnson & Johnson (JNJ) kicks off IPO roadshow for planned Kenvue spinoff, according to a filing. Later this year, J&J plans to offer 151 million shares of the consumer health unit at between $20 and $23 each. The company’s medtech and pharma businesses, which accounted for just over 84% of its total 2022 revenue, will retain the Johnson & Johnson name.
5. First Republic Bank (FRC) shares drop more than 20% early Tuesday, the morning after the regional said deposits fell by 40% to $104.5 billion during the first quarter. Fallout from the crisis that began with the failure of Silicon Valley Bank in mid-March was worse than expected. However, First Republic says deposit flows have since stabilized.
6. PepsiCo (PEP) outstanding quarter, with share take but real organic growth is price. Food flat growth and beverages up 1%. So still higher prices. No sign of the end of inflation. Some trade down in snacks to smaller form factor. PepsiCo is in our Bullpen, our list of stocks that we’re watching as possible portfolio names.
7. Dow stock McDonald’s (MCD) delivers better-than-expected EPS and revenue in Q1. Traffic increases despite price hikes. Same-store sales up nearly 13%. Digital represents 40% of systemwide sales.
8. General Electric (GE) in Q1; much better-than-expected Aerospace. Double-digit growth in orders revenue and profit. GE’s energy portfolio, Vernova, looks good for spin-off next year; both renewables and power.
9. General Motors (GM): Q1 earnings and revenue beats. Guidance for full year raised. CNBC’s Phil LeBeau asks CFO about China; challenges in China. GM plans to end production of Chevrolet Bolt models by the end of this year. Older battery tech. The factory that made Bolt will be retooled.
10. Dow stock 3M (MMM) announces 6,000 job cuts in conjunction with first-quarter results. Best on EPS and adjusted sales. Organic revenue growth 5.6%. Affirms full-year EPS and revenue guidance.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
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