Archives of “October 2020” month

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Tesla earnings better-than-expected

  
Analysis, US Market

Earnings come in at $0.76 vs. estimate of $0.57

Tesla earnings are coming out better-than-expected with EPS at $0.76 vs. estimates of $0.57.
  • Revenues $8.77 billion vs. estimate $8.36 billion
  • 3rd quarter free cash flow $1.4 billion vs. $418 million quarter on quarter
The stock is trading up 3.3% at $437
Whirlpool also smashed earnings estimates on both the top and bottom lines and reinstated 2020 guidance
  • Revenues $5.29 billion vs. $4.76 billion estimate
  • earnings per share come in at $6.91 vs. $4.20 estimate. Dividend was up
  • reinstated 2020 guidance  expected $17.50 to $18 EPS vs. $13.50 estimate
  • increased dividend to a $1.25
Whirlpool shares are up 9% in after-hours trading

Major US indices close lower on the day and near the lows of the day

  
Analysis, US Market

Up and down trading day on stimulus hopes

The major US indices are ending the session with modest declines – but near the lows – in what has been an up and down session spurred on by the coronavirus stimulus talks out of Washington.
The final numbers are showing:
  • S&P index -7.64 points or -0.22% at 3435.48
  • NASDAQ index -31.799 points or -0.28% at 11484.69
  • Dow industrial average -98.1 points or -0.35% at 28210.69
The major indices gave up earlier gains.
  • The S&P index was up 21.74 points at the high
  • The NASDAQ index is up 97.3 points at the high
  • The Dow industrial average was up 141 points at the high
Tesla will report Q3 results after the bell (at about 4:20 PM ET)
  • earnings-per-share expected at $0.57
  • revenues expected at $8.36 billion
Also reporting after the close are Chipotle, CSX, Whirlpool, and Sands.
European indices today also close lower across the board and near their session lows. The UK FTSE 100 and Italian MIB was the weakest of the majors.

Up and down trading day on stimulus hopes_

Fed’s Beige Book: Economic activity improved at slight to modest pace

  
  Analysis

The latest Fed report on the economy

  • Growth continued but was slight-to-modest
  • Manufacturing generally increased at moderate pace
  • Commercial real estate conditions continued to deteriorate in many districts
  • Consumer spending growth remained positive, but some Districts reported a leveling off of retail sales and a slight uptick in tourism activity.
  • Districts characterized the outlooks of contacts as generally optimistic or positive, but with a considerable degree of uncertainty
  • Banking contacts in many Districts expressed concern that delinquency rates may rise in coming months
  • Overall, consumer prices across Districts rose modestly

There are some worrisome comments on New York real estate in the report, saying condo sales were down nearly 50% y/y with inventories rising sharply. They also noted that office rental rates were down 8% y/y.

Congress likely out of time on per-election stimulus deal – report

  
Analysis, Politics

It’s all political theatre now

It's all political theatre now
A stimulus bill is unlikely to be passed before the election, according to sources in both parties cited by CNN.
There is hope for an agreement in principle but passing it before the Nov 3 vote is probably too big of a hurdle.

That’s because of the sharp disagreements within the GOP, the logistical hurdles of passing legislation quickly of this magnitude through both chambers and the fact that Speaker Pelosi and Treasury Secretary Steven Mnuchin still have many outstanding details to sort through.

Pelosi has not yet told her colleagues if she’ll bring the House back to session next week to vote on the stimulus, sources said. So it’s still possible the House could return next week just days before the election.

But the Senate is likely to adjourn after Monday when Amy Coney Barrett is confirmed to the Supreme Court, though the final schedule has not yet been announced.

Brazil reports that volunteer in Astrazeneca COVID vaccine trial died

  
  Analysis

What killed him/her

Brazil health authority Anvisa says a volunteer in the clinical trials of Astrazeneca/Oxford COVID-19 vaccine has died. The Brazil Federal University Of Sao Paulo says the volunteer was Brazilian.
Now, people die all the time and there are thousands of people doing virus trials so there’s a good chance it’s a coincidence. Brazil’s health authority said the trials will continue, so you can infer it might not be related.
Still, ADRs of AstraZeneca are quickly down almost $2 to $50.62.
Update: The University of Oxford said that it has carefully assessed the case in Brazil and there have been no concerns about the safety of the trial. Shares of AZN have pared nearly all the loss with a clearer message here that the death wasn’t believed to be related to the vaccine.
The bad news is that this is more fodder for the anti-vaxxers.

Goldman Sachs on US stimulus talks – a deal doesn’t seem particularly close

  
  Analysis

Analysts at the investment banks are not bullish on a resolution soon, saying:

 

  • Some of the biggest issues remain unresolved 
  • the thorniest issues – fiscal aid to states and liability protections – are still outstanding

 

there is

 

  • no indication that differences have narrowed since last week

 

and

 

  • a deal doesn’t seem particularly close

 

—

If you look across various ‘risk’ assets during the Asian session here you’d have to say they disagree with GS?
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