Courtesy of Blain.
A quick pop at the open was immediately sold but then some mild buying came in Tuesday afternoon. All in all, a quiet day as the S&P 500 gained 0.16% and the NASDAQ fell 0.22%. The NASDAQ has been really outperforming of late so this was to a degree some reversion to mean between the two indexes. In economic news retail sales showed an increase of 0.9 percent , slightly below expectations of a 1.1 percent month-on-month increase in overall spending. However, the figure was the first gain since late last year.
Interestingly both indexes bottomed at their 20 day moving average today but as you can see the NASDAQ chart has a nicely spaced 20 v 50 day moving average whereas for the S&P 500 it is almost an identical level.
So we begin the real earnings season today – time to look at some key ones.
JPMorgan’s (JPM) net income rose to $5.91 billion, or $1.45 per share, in the first quarter ended March 31, from $5.27 billion, or $1.28 per share, a year earlier. CEO Jamie Dimon said the company is getting safer and stronger, as well as gaining market share.
Wells Fargo (WFC) edged lower after the firm posted earnings of $1.04 per share, six cents above estimates, with revenue also above forecasts. The report did break an 18-quarter streak of higher year-over-year earnings, as the bank deals with the impact of a lower interest rate environment.
A mixed bag in the railroads. Norfolk Southern (NSC) fell after reporting on Monday that it expected to earn $1 per share for the first quarter, below current consensus estimates of $1.25. The rail operator said slower coal volumes and a reduction in fuel surcharge revenue are among the factors weighing on the bottom line.
CSX (CSX) initially fell in concert with Norfolk but recovered by the end of the day then reported some ok numbers and is up in after hours a few %. The company also announced more shares to be repurchased and an increased dividend.
CSX Corp (CSX) on reported first-quarter net income of $442 million.The company said it had net income of 45 cents per share. The results met Wall Street expectations. The freight railroad posted revenue of $3.03 billion in the period, which fell short of Street forecasts. Eight analysts surveyed by Zacks expected $3.06 billion. The 39 percent drop in fuel costs to $270 million provided a key boost for CSX. CSX said its board approved spending $2 billion to repurchase its own stock over the next two years. The railroad also plans to increase its quarterly dividend to 18 cents per share in June from the previous 16 cents per share.
Intel (INTC) also reported – recall it had warned a month or so ago – so this was a very low bar to beat. The stock is up to mid $32s in after hours.
Chipmaker Intel Corp forecast revenue broadly in line with Wall Street’s expectations and signaled a hefty cut in capital expenditures this year, lifting its shares in after-hours trading. The company, world’s largest semiconductor maker, hit the drastically lower revenue forecast it offered for itself last month. Intel said it would cut 2015 capital expenditures to $8.7 billion from $10 billion, a reduction that analysts said should improve free cash flow.
