Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

Today on Wall Street: Tech’s big day

07/27/2021 | 09:22am EDT

Along with a flurry of corporate results, investors are keeping an eye on tightening regulation in China and the impending Federal Reserve meeting. They are also eagerly awaiting the results of tech giants.

Concerns are mounting about the impact of tightening government regulations in China. After the technology sector, Beijing has recently extended its crackdown to other stocks such as real estate and education. Who will be next?

Attention is also focused on the two-day meeting of the Federal Open Market Committee (FOMC) meeting, which starts today and lasts until tomorrow, where the central bank could give guidance on high inflation and its asset purchase program.

The resumption of global growth is one of the main catalysts for the rise of indexes, with, of course, the central banks' liquidity valves remaining wide open for a long time to come. In addition to this macroeconomic support, there is now a microeconomic corollary, namely the better health of companies, which is highlighted by earnings season. With about a quarter of the S&P500 companies having released their half-yearly accounts so far, 88% have reported earnings per share above analysts' consensus, according to data compiled by FactSet.    

The Tesla share was up by more than 2% in pre-market trading, after it reported better-than-expected results for the second quarter. However, component shortages in the industry could jeopardize the group's growth for the rest of the year, forcing it to postpone the launch of its electric trucks and pickups.

It's a big day for US tech champions, as Apple, Microsoft and Alphabet, as well as other behemoths such as AMD and Visa, are set to release their half-year earnings after the close of Wall Street.

 

Today's economic highlights

US durable goods orders rose 0.8% to USD 257.6B in June, below expectation of 2.1%. Consumer confidence is also released today.

The dollar is trading at EUR 0.8464. The ounce of gold is virtually unchanged at USD 1,802. Oil is stable at USD 74.6 for North Sea Brent and USD 72 for US light crude WTI. The yield on US debt is stabilizing after rising to 1.26% on 10-year. Bitcoin continues its rise to USD 38407.

 

On markets:

* Tesla - The electric vehicle maker reported second-quarter results that beat Wall Street expectations on Monday, helped by record shipments despite persistent chip and raw material shortages. The stock was up 2.2% in pre-market trading.

* Intel announced Monday that its factories will begin producing Qualcomm chips and unveiled a roadmap to expand its foundry business to catch up with rivals like Taiwan Semiconductor Manufacturing and Samsung Electronics by 2025.

* General Electric on Tuesday raised its free cash flow forecast to a range of $3.5 billion to $5 billion (from $2.5 billion to $4.5 billion previously) for this year on the back of a recovery in the aviation market that should boost demand for the U.S. conglomerate's engines and parts. The stock gained 3.7% in pre-market trading.

* 3M on Tuesday reported a 16.7% increase in quarterly profit and raised its annual profit and revenue forecasts thanks to a rebound in several of its markets that had been affected by the COVID-19 pandemic.

* United Parcel Service (UPS) on Tuesday reported better-than-expected quarterly revenue and profit on increased shipments and distribution of healthcare products such as COVID-19 vaccines.

* Centene - The health insurer reported a lower-than-expected second-quarter profit on Tuesday, due in part to higher medical costs.

* Raytheon Technologies on Tuesday raised its full-year adjusted profit forecast on higher demand for its products and services amid a recovery in air travel. The stock is up 1.2 percent in premarket trading.

* Starbucks announced on Monday evening the sale of its entire 50% stake in its South Korean joint venture to local partner E-Mart and Singaporean sovereign wealth fund GIC in a deal valued at over $2 billion. The coffee chain also reports its quarterly results after the close of Wall Street.

* API group announced Tuesday that it has acquired Chubb Fire & Security Business for $2.9 billion to expand into new markets.

 

Analyst recommendations:

  • American Airlines Group: Berenberg upgrades to hold from sell. PT down 14% to $19
  • Alibaba Group Holding: DZ Bank AG cut the recommendation to sell from buy. PT up 0.1% to $192
  • Century Aluminum: B Riley Securities raises from Neutral to Buy at ; PT up 46% to $19
  • Cummins: Vertical Research Partners upgrades to buy from hold. PT up 18% to $280
  • Expeditors: Vertical Research Partners cuts to hold from buy. PT up 4.2% to $135
  • Flutter: J.P. Morgan upgrades to overweight from neutral. PT up 29% to 16,290 pence
  • JD.com:  DZ Bank AG cut the recommendation to sell from buy. PT set to $62, implies a 6.2% decrease
  • Paccar: Vertical Research Partners raises stock to buy from hold. PT up 15% to $100
  • Intel: Goldman Sachs keeps Sell rating. The target price continues to be set at USD 55.
  • McDonald's: Guggenheim Securities reinstated coverage of McDonald's with a recommendation of buy. PT raised 11% to $270
  • Reckitt Benckiser: Goldman Sachs gives the stock a Neutral rating. The target price is still set at GBp 6350.
  • Rolls-Royce: JP Morgan keeps Neutral rating. The target price remains set at GBp 105.
  • Starbucks: Guggenheim Securities reinstated coverage of Starbucks with a recommendation of neutral. PT down 0.8% to $125 
  • Tesla: Goldman Sachs advises its customers to buy the stock. The target price remains set at USD 860.
  • Yum: Vertical Research Partners downgrades to hold from buy. PT lifted 4.2% to $135

© MarketScreener.com 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -4.04% 145.08 Delayed Quote.-37.66%
ALPHABET INC. 0.71% 2844.3 Delayed Quote.62.29%
AMDOCS LIMITED -0.21% 76.84 Delayed Quote.8.33%
AMERICAN AIRLINES GROUP INC. 2.34% 21.39 Delayed Quote.35.64%
API GROUP CORPORATION -1.09% 20.8 Delayed Quote.14.60%
APPLE INC. 0.06% 146.92 Delayed Quote.10.72%
BITCOIN - EURO -0.85% 36143.32 Real-time Quote.54.35%
BITCOIN - UNITED STATES DOLLAR -1.05% 42308.96 Real-time Quote.47.86%
BRITISH POUND / US DOLLAR (GBP/USD) -0.37% 1.36698 Delayed Quote.0.34%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.01% 0.7897 Delayed Quote.0.57%
CENTENE CORPORATION 0.35% 62.82 Delayed Quote.4.65%
CENTURY ALUMINUM COMPANY -2.56% 13.69 Delayed Quote.27.38%
CHUBB LIMITED -0.42% 176.75 Delayed Quote.14.83%
CUMMINS INC. -0.29% 227.66 Delayed Quote.0.25%
EURO / US DOLLAR (EUR/USD) -0.18% 1.1718 Delayed Quote.-3.88%
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. -0.23% 124.69 Delayed Quote.31.10%
FLUTTER ENTERTAINMENT PLC -1.18% 180.2 Real-time Quote.7.97%
GENERAL ELECTRIC COMPANY 0.89% 103.8 Delayed Quote.20.14%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.01% 0.013548 Delayed Quote.-1.04%
INTEL CORPORATION 0.35% 54.22 Delayed Quote.8.83%
JD.COM, INC. -2.82% 73.98 Delayed Quote.-15.84%
LONDON BRENT OIL 0.94% 78.01 Delayed Quote.49.38%
MCDONALD'S CORPORATION 0.67% 246.42 Delayed Quote.14.84%
MICROSOFT CORPORATION -0.07% 299.35 Delayed Quote.34.59%
MSCI TAIWAN (STRD) 1.41% 706.478 Real-time Quote.15.94%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.73% 0.7012 Delayed Quote.-1.60%
PACCAR, INC. -0.38% 80.53 Delayed Quote.-6.66%
QUALCOMM, INC. -0.02% 133.88 Delayed Quote.-12.12%
RAYTHEON TECHNOLOGIES CORPORATION 0.47% 87.16 Delayed Quote.21.31%
RECKITT BENCKISER GROUP PLC 0.39% 5853 Delayed Quote.-10.53%
ROLLS-ROYCE HOLDINGS PLC 4.38% 132.5 Delayed Quote.19.10%
S&P 500 0.15% 4455.48 Delayed Quote.18.45%
S&P GSCI ALUMINUM INDEX -0.52% 185.37 Delayed Quote.48.39%
S&P GSCI COFFEE INDEX 1.97% 149.6728 Delayed Quote.48.62%
S&P GSCI CRUDE OIL INDEX 0.69% 405.4586 Delayed Quote.51.42%
SAMSUNG ELECTRONICS CO., LTD. -0.13% 77300 End-of-day quote.-4.57%
STARBUCKS CORPORATION -0.03% 114.11 Delayed Quote.6.66%
TAIWAN SEMICONDUCTOR CO., LTD. 0.78% 65 End-of-day quote.4.50%
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED 1.70% 598 End-of-day quote.12.83%
TESLA, INC. 2.75% 774.39 Delayed Quote.9.74%
THE GOLDMAN SACHS GROUP, INC. -0.26% 390.85 Delayed Quote.48.21%
UNITED PARCEL SERVICE INC 0.66% 188.02 Delayed Quote.11.65%
VISA 1.44% 231.59 Delayed Quote.5.88%
WTI 0.93% 73.961 Delayed Quote.52.07%
YUM! BRANDS, INC. 0.43% 125.52 Delayed Quote.15.13%