Trader TV Watchlist - July 23, 2024

Trader TV Watchlist - July 23, 2024

Author

Adara LePage
July 23, 2024

Tuesday July 23, 2024

Welcome to the TraderTV Live Morning Research Note. Here's what's making major moves in the market today.

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Economic Events:

1000 - Existing home sales for June: Expected 3.99M; Prior 4.11M
1000 - Existing home sales m/m for June: Expected -3.04%; Prior -0.7%
1000 - Richmond Fed composite index for July: Expected -6; Prior -10

Premarket Trading:

Trading Higher ($): SPOT, TSLA, GM, SNAP, TSM

Trading Lower ($): DJT, UPS, XPEV, IBIT

Earnings Today:

Premarket: SPOT, GM, GE, KO, UPS, LMT, FCX, CMCSA, PM, DHR

Post-market: TSLA, GOOGL, ENPH, V, TXN, STX, CB, COF, MAT

Top Stories

SPOT Gaps Up on Monthly Active User Growth, GOOGL and TSLA Report After the Bell!

Futures are subdued as investors await key the first two Mag 7 earnings reports of the season, which could indicate the sustainability of the market's recent record-breaking run. These reports follow the largest one-day gains in more than a month for the Nasdaq and S&P 500, ending a three-day losing streak for both indices. Quarterly results from Alphabet and Tesla are scheduled to drop after the close; chip stocks, meanwhile, are trading lower following disappointing guidance from NXP Semiconductors. Market participants are also looking ahead to economic data, including Friday’s PCE price index print, to gauge the monetary policy outlook ahead of the FOMC’s July meeting and rate decision next week. Expectations for a 25-basis point rate cut by September have surged to 92%. Other stocks on watch include Snap Inc, which is trading higher after being upgraded by Morgan Stanley.

In The News

Spotify Technology SA (SPOT)

+13.05%

The company’s US-listed shares are gapping up following its earnings report, with Q2 earnings of 1.33 euros per share exceeding the estimate of 1.08 euros. However, quarterly sales of 3.807 billion euros fell short of the estimated 3.812 billion euros. The company also reported a 14% year-over-year increase in monthly active users to 626 million as of Q2, forecasting that the metric will reach 639 million total MAUs by Q3 2024.

Tesla and Alphabet

+0.56%

Both companies are on watch ahead of their earnings reports after the close on Tuesday. Tesla is expected to post $24.97 billion in revenue and earnings of $0.59 per share, while analysts are looking for $84.2 billion in revenue and earnings of $1.85 per share from Alphabet. Additionally, Wiz has stepped away from a potential $23 billion acquisition offer by Google and will be looking to enter the market via an IPO, according to an internal memo as reported by CNBC.

TSLA, GOOGL

Semiconductors

-0.47%

Trading lower as a group following an earnings report from NXP Semiconductors, which beat sales estimates but posted earnings of $3.20 per share compared to the $3.21 estimate. The company guided Q3 revenue between $3.15 billion and $3.35 billion, largely below the estimated $3.35 billion, and guided quarterly EPS between $3.21 and $3.63 compared to the estimate of $3.56. Advanced Micro Devices, Arm Holdings, and Intel are all scheduled to report earnings next week.

NVDA, AMD, INTC, MRVL, ARM, MU, AVGO

Apple Inc (AAPL)

+0.13%

Counterpoint Research noted that the company is likely to benefit from India’s plans to reduce the import duty on mobile phones and key components from 20% to 15%, with Apple continuing to import some high-end models despite increasing local production. This tax cut, announced in the 2024/25 budget, is expected to save Apple $35-50 million annually and will also help new market entrants and other manufacturers like Samsung, although Samsung will benefit less due to its predominantly local production.

General Motors Co (GM)

+4.52%

Trading sharply higher premarket after its earnings report. The company reported sales of $47.969 billion, above the estimated $45.302 billion, and earnings of $3.06 similarly exceeded the estimate of $2.72. General Motors increased its 2024 adjusted EPS guidance to a range between $9.50 and $10.50, compared to estimates of $9.71, along with raising its EBIT-adjusted guidance and adjusted operating cash flow guidance.

Snap Inc (SNAP)

+3.19%

Trading higher premarket after receiving an upgrade from Morgan Stanley. The analyst raised its rating for Snap from Underweight to Equal-Weight and increased its price target from $12 to $16. Snap is set to report earnings after the close on Thursday, August 1.

CrowdStrike Inc (CRWD)

+0.72%

Trading higher premarket with volume after selling off for two straight sessions as market participants evaluate the aftermath of a system outage caused by a CrowdStrike update. CEO George Kurtz is set to testify about the service disruption before a US congressional panel. Additionally, Cathie Wood’s Ark Invest has purchased $5.34 million of CrowdStrike shares across two of its ETFs, while HSBC downgraded its rating for the stock to Hold.

United Parcel Service Inc (UPS)

-7.70%

Gapping down following its earnings report, with earnings per share of $1.79 and sales of $21.82 billion missing estimates of $1.99 and $22.183 billion, respectively. The company’s revised FY24 revenue outlook of $93 billion slightly exceeded estimates of $92.79 billion. UPS also announced that it would be aiming for $500 million in share buybacks over the course of fiscal 2024 as part of its renewed $1 billion buyback program.

Mammoth Energy Services Inc (TUSK)

+33.71%

Trading higher premarket after announcing that its subsidiary, Cobra Acquisitions, has reached a release and settlement agreement with the Puerto Rico Electric Power Authority. The value of the settlement is estimated to be roughly $188 million.