Friday, April 12, 2019
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WHAT TO WATCH
As a few big banks kick things off, consensus outlook for first-quarter earnings season is rather bleak.
John Lynch, LPL Financial’s chief investment strategist, predicted that a flat first-quarter earnings season would be the best case scenario. “First quarter earnings season kicks off this week and the bar seems low. Consensus estimates for first quarter earnings season are calling for a slight year-over-year decline in S&P 500 Index earnings amid the economic soft patch at the start of the year,” Lynch wrote in a note to clients on Tuesday. “We expect roughly flat earnings for the quarter, but the streak of seven straight quarters of earnings growth could come to an end.”
But just how low is the bar for first-quarter earnings? “The 7% cut to first quarter estimates since the start of the year, the biggest cut since the first quarter of 2016, may have put the bar too low,” Lynch said.
JPMorgan is expected to report earnings of $2.36 on $28.39 billion of revenue, while analysts expect PNC to report earnings of $2.61 per share on $4.27 billion of revenue. Wells Fargo is estimated to have earned $1.10 per share on $20.97 in revenue.
Uber files paperwork for IPO: Uber filed paperwork with regulators to go public on Thursday, after rival Lyft became the first to tap the markets in what is shaping up to be a banner year for technology initial public offerings. Uber’s SEC paperwork revealed it plans to seek a listing on the New York Stock Exchange, under the ticker “UBER” — but did not specify a price range for the shares. [Yahoo Finance]
Disney reveals details for Netflix streaming rival: The Walt Disney Company (DIS) announced its long-awaited movie and TV series streaming platform, Disney+, a service intended to rival Netflix (NFLX) and Apple’s (AAPL) forthcoming Apple TV+. Disney+ will first be available in the U.S. on November 12, 2019 for $6.99 a month. [Yahoo Finance]
Herman Cain's nomination to the Fed likely over before it began: Former pizza chain executive and presidential candidate Herman Cain’s bid to join the Federal Reserve Board of Governors may have ended before it even began. At least four Republican senators have said they are opposed to Cain’s nomination. [Yahoo Finance]
China exports rebound, imports warn of fragility: China’s exports rebounded after the Lunar New Year holiday amid a pickup in trade talks optimism, while a continued slide in imports underscored the fragility of the domestic economy. Exports jumped 14.2% in March from a year earlier while imports fell 7.6% in dollar terms, the customs administration said Friday. [Bloomberg]
Tesla begins offering leases for Model 3: Tesla Inc (TSLA) on Thursday started leasing out its Model 3 sedan in the United States, in a financing option that would increase the electric car maker's customer base. [Reuters]
Campbell to reportedly sell fresh food unit for about $500M: Campbell Soup Co. (CPB) is nearing a deal to sell its fresh food unit's Bolthouse Farms for about $500 million to a group led by the former chief executive officer of the brand, the Wall Street Journal reported on Thursday. [Reuters]
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