Connect with us

World

The stock market can keep climbing

Published

on

The stock market rallied Friday as investors reacted to the worse-than-expected April jobs report, which indicates the Federal Reserve’s easy policy is unlikely to go anywhere soon, CNBC’s Jim Cramer said.

“I know the conventional wisdom says sell in May and go away, but that stupid ditty needs to be retired, at least when it comes to the first week of the month, when lots of people who held onto stocks did quite well,” the “Mad Money” host said. “Now that the Fed remains our friend, I bet we can keep climbing.”

Here’s Cramer’s game plan for next week’s corporate earnings reports, which will offer additional insight into the state of the U.S. economic recovery.

Projections for revenue and earnings per share are based on FactSet estimates:

Monday: Tyson Foods, Marriott International, Simon Property Group, Occidental Petroleum and Roblox

Tyson Foods

  • Q2 2021 earnings release: before market; conference call: 9 a.m.
  • Projected EPS: $1.15
  • Projected revenue: $11.2 billion

“We’ll hear whether the budding chicken shortage is going to drive up prices [and] probably hear about the price of corn. As is, the cost of animal feed keeps going higher and higher, food inflation is getting out of hand,” Cramer said. “Will that be ignored? Hard to imagine. But it comes right in the shadow of this benign jobs number, so again, it probably won’t matter.”

Marriott International

  • Q1 2021 earnings release: 7 a.m.; conference call: 8:30 a.m.
  • Projected EPS: 4 cents
  • Projected revenue: $2.38 billion

“We also hear from Marriott International and I’d very much like to see what their bookings look like,” Cramer said. “This morning, Expedia told us that pleasure trips are filling hotels, but business excursions haven’t come back much at all because everybody’s still using Zoom.”

Simon Property Group

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected EPS: $2.27
  • Projected revenue: $1.1 billion

“I bet they shoot the lights out,” Cramer said, calling the mall operator one of his favorites. “Brick and mortar retail is booming, at least in wealthier communities. Simon’s bread and butter is right there, so I think the numbers will be monstrously good.”

Occidental Petroleum

  • Q1 2021 earnings release: after market: conference call: 1 p.m. Tuesday
  • Projected loss per share: 33 cents
  • Projected revenue: $4.79 billion

“We’ve been getting some stellar numbers from oil producers that are feasting on this environment where crude sells for more than $60 a barrel. They make money there. I bet Oxy’s one of them,” he said.

Roblox

  • Q1 2021 earnings release: after market; conference call: 8:30 a.m. Tuesday
  • Projected EPS: 8 cents
  • Projected revenue: $573 million

“The company came public in one of those direct listings that tend to undervalue stocks. I think this may be your chance to buy shares in a fast-grower before it gets closer to a full valuation,” Cramer said.

Tuesday: Palantir Technologies, Vizio

People walk by a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020.

Andrew Kelly | Reutersa

Palantir Technologies

  • Q1 2021 earnings release: before market; conference call: 8 a.m.
  • Projected EPS: 4 cents
  • Projected revenue: $332 million

The company is loved by the community on Reddit’s Wall Street Bets, Cramer said. “They pride themselves on moving stocks, though, even if the fundamentals don’t merit it … so I think this could be another opportunity to do some buying. The stock is down big from the mid-$20s where they had driven it up to,” he said.

Vizio

  • Q1 2021 earnings release: after market: conference call: 4:30 p.m.
  • Projected loss per share: 10 cents
  • Projected revenue: $485 million

“I often think of Vizio in tandem with red-hot Roku. … That stock had cooled but then went up nicely after it reported last night,” Cramer said. “I’d say it’s at least worth listening to Vizio to get another view of the situation, but I hesitate to recommend it because of the chip shortage.”

Wednesday: Wendy’s, Bumble and GrowGeneration

Wendy’s

  • Q1 2021 earnings release: before market; conference call: 8:30 a.m.
  • Projected EPS: 15 cents
  • Projected revenue: $445 million

“It’s had a nasty habit of going down on earnings, then rallying later on. As much as I like it … I think you’ll probably want to see the quarter before you pull the trigger,” Cramer said.

Bumble

  • Q1 2021 earnings release: after market; conference call: 4:30 p.m.
  • Projected loss per share: 3 cents
  • Projected revenue: $165 million

Match Group reported an amazing quarter this week, so I have to think that this online dating competitor, Bumble, can do the same next Wednesday night. I like Bumble,” Cramer said.

GrowGeneration

  • Q1 2021 earnings release: after market; conference call: 9 a.m. Thursday
  • Projected EPS: 7 cents
  • Projected revenue: $87.1 million

GrowGeneration “tends to soar after reports,” Cramer said. “I bet this time will be no different, especially as more cash-strapped states embrace legalization in order to pay their bills.”

Thursday: Alibaba, Disney, DoorDash, Airbnb and Coinbase

Attendees visit the Disney+ streaming service booth at the D23 Expo on August 23, 2019 at the Anaheim Convention Center in Anaheim, California.

ROBYN BECK | AFP | Getty Images

Alibaba

  • Q4 2021 earnings release: before market; conference call: 7:30 a.m.
  • Projected EPS: $1.79
  • Projected revenue: $27.83 billion

“Remember, China is well ahead of us when it comes to the post-pandemic recovery,” Cramer said. “Alibaba should put up some excellent numbers as Chinese consumers rebound from tough times.”

Disney

  • Q2 2021 earnings release: after market; conference call: 4:30 p.m.
  • Projected EPS: 27 cents
  • Projected revenue: $15.86 billion

“Of all these, I think Disney’s got the best story going forward — I’d be a buyer,” Cramer said.

DoorDash

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: 8 cents
  • Projected revenue: $994 million

“DoorDash has lined up some amazing partnerships during the pandemic and I think it can make good money now, but maybe not great money because so many people want to dine in person now that they’ve been vaccinated,” the “Mad Money” host said.

Airbnb

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected loss per share: $1.05
  • Projected revenue: $718 million

“Airbnb might tell a terrific story, but the stock’s really expensive at a time when the market has turned against the highest fliers,” Cramer said. “But remember, Airbnb is not business [travel]. It’s pleasure, and pleasure is booming.”

Coinbase

  • Q1 2021 earnings release: after market; conference call: 5 p.m.
  • Projected EPS: $2.98
  • Projected revenue: $1.81 billion

“It’s a mystery. Given the crazy crypto world, its business should be booming, but because it came public via a dreaded direct listing we have no idea where the sellers are and what the darn thing is really worth,” Cramer said. “I don’t trust the stock price. I like the story, though.”

Friday: Retail sales

“I think you’ll see a super-strong number, a barnburner. If it weren’t for today’s weak employment number, we might’ve seen bond yields surge on this retail sales figures, with the Fed pressured to tighten,” Cramer said. “Fortunately, the labor report trumps retail sales, but I’d argue retail’s the real comeback story right now and that means we’re likely to have more than just temporary inflation.”

Source link

World

Stock futures open flat after S&P 500 snaps two-day winning streak

Published

on

Traders on the floor of the New York Stock Exchange.

Source: NYSE

Stock futures opened flat in overnight trading after the market’s comeback rally hit a speedbump on Wednesday.

Futures on the Dow Jones Industrial Average added 44 points, or 0.13%. S&P 500 futures ticked 0.09% higher and Nasdaq 100 futures edged up 0.12%.

The S&P 500 snapped a two-day winning streak Wednesday, closing the regular session 0.1% lower. The Dow also shed 71.34 points, or 0.2%. Meanwhile, the Nasdaq Composite gained 0.1% to squeeze out another record closing high.

Eight out of 11 S&P 500 sectors closed in the red, led by utilities, which dropped 1.1%. However, energy names like Exxon Mobil, Occidental Petroleum and Devon Energy rose as oil prices continued to climb. Technology names like Tesla and Netflix also closed higher.

Despite Wednesday’s hiccup, the three major indexes are up more than 1% this week, rallying from a sell-off last week after the Federal Reserve heightened inflation expectations and forecast rate hikes as soon as 2023.

Comments from Fed Chair Jerome Powell during a Congressional testimony Tuesday reiterated that inflation pressures should be temporary, which seemed to soothe market sentiment.

“Beneath the optimism, markets are at risk of becoming complacent – and vulnerable to shocks. Any signal that interest rates and bond yields could rise, even in the absence of pronounced inflationary pressure, could shatter market exuberance,” Gaurav Mallik, chief portfolio strategist at State Street Global Advisors, said.

“Central banks will walk a tightrope between allowing the economy to run hot – which history has shown to be a bad idea – and managing inflation risk,” he added.

Investors await new jobless claims data set to be released Thursday for the latest outlook on unemployment.

The Fed’s annual bank stress test results are scheduled for release after the bell on Thursday. The test examines how banks fare during various hypothetical economic downturns. After the Fed’s results, banks typically announce how much capital they can release in the form of dividends and buybacks.

Darden Restaurants, Nike and FedEx are set to report quarterly earnings on Thursday.

— CNBC’s Hugh Son contributed reporting.

Source link

Continue Reading

World

John McAfee found dead after Spanish court OKs extradition for tax crimes

Published

on

John McAfee, co-founder of McAfee Crypto Team and CEO of Luxcore and founder of McAfee Antivirus, speaks at the Malta Blockchain Summit in St Julian’s, Malta November 1, 2018.

Darrin Zammit Lupi | Reuters

Eccentric antivirus software company founder John McAfee was found dead in his prison cell in Barcelona, Spain, on Wednesday, shortly after Spain’s National Court approved his extradition to the United States to face criminal tax evasion charges, Reuters and the Associated Press confirmed.

The Spanish newspaper El Mundo first reported that the 75-year-old McAfee was dead, according to the Catalan Justice Department.

El Mundo, citing the Catalan Justice Department, also reported that the prison’s medical professionals attempted to resuscitate him. McAfee was being held at the Brians 2 prison in Catalunya.

McAfee was arrested last October at the international airport in Barcelona on the tax evasion charges, which are pending in federal court in Tennessee. He had been held in jail in Spain since then.

According to the indictment, McAfee earned millions of dollars in income from promoting cryptocurrencies, consulting work, speaking engagements, and selling the rights to his life story for a documentary.

“From 2014 to 2018, McAfee allegedly failed to file tax returns, despite receiving considerable income from these sources,” the U.S. Justice Department said in October.

McAfee also was charged in Tennessee federal court in March with failing to report income he made from promoting cryptocurrencies.

CNBC Politics

Read more of CNBC’s politics coverage:

The Justice Department has said that McAfee and others involved in that so-called scalping scheme bought large amounts of cheap cryptocurrency altcoins, then aggressively promoted them online with “false and misleading endorsement tweets” to artificially inflate their market prices.

“McAfee Team members collectively earned more than $2 million in illicit profits from their altcoin scalping activities,” the Justice Department said earlier this year.

The Securities and Exchange Commission in a civil lawsuit has accused McAfee of making more than $23 million in undisclosed income from false and misleading cryptocurrency recommendations.

McAfee resigned from the eponymous antivirus software company he founded in 1994.

In 2013, he created a profane parody video explaining how users can uninstall the software.

And in 2019, he was ordered to pay $25 million in damages over the killing of a former neighbor in Belize in 2012.

This is breaking news. Check back for updates.

Source link

Continue Reading

World

Windows 11: What to expect

Published

on

Satya Nadella, chief executive officer of Microsoft Corp., speaks during the Windows 10 Devices event in New York on Oct. 6, 2015. Microsoft Corp. introduced its first-ever laptop, three Lumia phones and a Surface Pro 4 tablet, the first indication of the company’s revamped hardware strategy three months after saying it would scale back plans to make its own smartphones.

John Taggart | Bloomberg | Getty Images

Last month, Microsoft chief Satya Nadella teased “one of the most significant updates of Windows of the past decade,” and on Thursday the company is planning to present it to the public.

Refreshing the 35-year-old operating system can result in additional revenue growth for the world’s second most valuable public company, behind only Apple. Over time, the new Windows will likely be widely adopted as millions of consumers and office workers make the upgrade from Windows 10, the top PC operating system.

In the past few days early adopters have been able to give people a sense of what’s to come, thanks to a leak of a next-generation version of Windows that appeared online last week. The operating system seemed to be part of an incomplete early build, according to a person familiar with the matter.

The leaked build contains a variety of changes, many of which Microsoft could describe at its virtual event on Thursday. Here’s a rundown of what to expect:

Design changes

If the next version of Windows looks anything like the leaked build, then it will be borrowing elements from the shelved Windows 10X, which had originally been conceived to run on dual-screen PCs, for an operating system that went by the name Windows 11. Just as Windows 10X located the Start button and icons for open programs at the center of the taskbar at the bottom of the display instead of the left side, Windows 11 does that, too.

The build incorporates a new Windows icon with four equally sized squares, unlike the icon used for Windows 8 and Windows 10 with window panes that widen from left to right. Individual application windows retain rounded corners, not unlike those in Apple’s MacOS, instead of the sharp corners in Windows 10.

The animations people see while opening and closing windows have changed, and the Start menu displays apps and files in a way that’s similar to the Windows 10X approach. Sounds for notifications and other events have also been revamped.

Modern features

The leaked build came with a few new ways for users to customize their PCs.

Pushing new buttons could make application windows snap into pre-set configurations on screen. And the Settings app included an option to enable the operating system to “remember window locations based on monitor connection.” That could alleviate one issue people have had with Windows failing to return applications to their previous configuration when people were using multiple displays with their computers.

Computers with touchscreens exposed a new setting called Wake on Touch — presumably a Windows equivalent of the feature on some mobile devices that allows users to quickly turn on the display by tapping the screen a couple of times.

A performance boost

Some of the people who installed the leaked Windows 11 build ran tests and found that the operating system delivered faster performance than the latest version of Windows 10, which itself was advertised as being “fast and familiar” when it was released in 2015.

The new version delivered better results than Windows 10 in a variety of comparisons on a Samsung PC running an Intel “Lakefield” chip, according to a report from Hot Hardware.

A revamped store

Nadella said last month that the Windows update would benefit developers. One place developers can expose their applications to end users in Windows is Microsoft’s app store. The company already said in April that it will lower the percentage of revenue that it keeps for itself from app store purchases, and Windows 11 could build on that.

Microsoft has been taking steps to permit developers to use third-party commerce systems for apps they’d like to list in the Store, and the company wants to make room for classic Win32 applications in the Store without requiring software changes, Windows Central reported in April.

Surprises

Finally, there could be unexpected announcements. On Tuesday Microsoft employee Miguel de Icaza said on Twitter that the company will talk about something he spent years pushing for. De Icaza joined Microsoft in 2016 as part of its acquisition of Xamarin, which allows software developers to build mobile apps for multiple platforms — including Apple‘s IOS and Google‘s Android — using Microsoft’s C# programming language.

Microsoft could also use the event as a chance to discuss structural changes to the Windows business.

“We’ll be listening carefully for any hint that Microsoft might use this launch to accelerate the transition of Windows revs to more of a subscription/ratable model, via a ‘Windows-as-a-Service’ offering or via a stronger M365 push (which bundles Office 365, Windows 10 and EMS), and whether an OS/desktop upgrade might boost enterprise Teams adoption,” analysts at UBS, which has a buy rating on Microsoft stock, wrote in a Monday note.

CNBC will cover the event as it unfolds starting at 11 a.m. ET on Thursday.

WATCH: Microsoft’s head of gaming on video game ecosystem

Source link

Continue Reading

Trending