Stocks rallied with the S&P and Dow hitting fresh highs on good earnings and positive vibes. Musk got richer, and through Twitter, enriched holders of Bitcoin, Ethereum, Dogecoin, and Shiba Inu, which rose by +47% in that past 7 days alone.
MOVERS AND SHAKERS
Stocks rose yesterday with growth shares outpacing value shares in a broad-based rally, propelling 2 out of the 4 major indexes to all-time highs. Here are some of the movers and shakers that shaped yesterday’s rally and some that will impact markets in the day ahead.
<- Look back
Tesla (TSLA) jumped by +12.66% yesterday, taking the EV carmaker into the $1 trillion market cap club. Despite its recent sales miss, the company beat EPS estimates by +11.4% as well as unit sales. Yesterday, Hertz, freshly out of bankruptcy announced that it had ordered 100,000 vehicles from Tesla, fueling the already brewing rally. I guess you are going to have to wait longer to buy one for yourself…maybe you can rent one.
Average analyst target return potential: -27.5%. *** This is negative because the current price is higher than the average analyst 12 month price target of $742. This may indicate that the stock is expensive, but does not mean that the stock will not continue to rally.
Nucor Corp (NUE) rallied by +6.93% yesterday, despite last week’s earnings miss. When is the last time you saw a steel producer hit the top ten winners list? The company has been reporting jumps in EBITDA as a result of rapidly rising steel prices that are expected to persist into 2022. Increased demand from real estate development and expected demand from the eventually approved infrastructure deals are driving industrial metal prices higher. The company is up by +105.7% year to date, making it a winner amongst rivals Steel Dynamics and US Steel. Dividend yield: 1.48%. Average analyst target return potential: +7.3%.
Ball Corp. (BLL) fell by -4.3% topping the S&P500 loser board. The company, known for its production of aluminum beverage cans fell yesterday after a Truist analyst cited that a shortage in magnesium could impact aluminum markets. Because BLL derives around 82% of its sales from beverage cans, the cost increases are likely to provide future headwinds for the company, according to the analyst which has a HOLD rating on the company. The company will announce its Q3 earnings next week. Dividend yield: 0.91%.
Average analyst target return potential: +17.8%.
Kimberly-Clark (KMB) dropped by -2.2% yesterday. The global seller of diapers, tissues, paper towel, and other similar products announced that it had missed earnings estimates yesterday. Though it narrowly beat on the top line (*** that is Wall Street slang for revenues), the company lowered is 2021 full year guidance citing unexpected rises in costs, specifically supply chain disruptions. We have heard this before, and are likely to hear it again through the remainder of earnings season. Dividend yield: 3.5%. Average analyst target return potential: +2.0%.
Look forward ->
Facebook (FB) released earnings after last night’s close, missing broadly on EPS and Revenues. The company plans on redoubling efforts to attract younger users back to its platform. Despite the announcement, the company is trading higher in premarket as many analysts believe that the worst is over for the social media giant. Average analyst target return potential: +24.8%.
UPS (UPS) announced that it had beaten analysts’ estimates on both EPS and Sales this morning. The company’s US package revenue increased by +7.4% year over year while its international package revenue grew by +15%. The company raised its 2021 operating margin target. UPS is trading higher by +7.8% in premarket. Dividend yield: 2.0%. Average analyst target return potential: +5.6%.
JetBlue Airways (JBLU) announced, this morning, that it had lost less than analysts’ estimates (still considered a beat) and that it had exceeded Revenue expectations. The company stated that September saw the bulk of the COVID surge-related softness, and that is sees the market stabilizing and improving though the year end with increased holiday demand. The stock is higher by +1.38% year to date and is trading marginally higher in the premarket. Average analyst target return potential: +33.4%.
Hasbro (HAS) announced that it had beaten estimates on both earnings and revenue by +20.08% and by a narrow +0.03% respectively. The company states that it had caught up with Q3 deliveries and that it anticipates continued strength, targeting +13% to +16% revenue growth for 2021. The toy and game maker is down by -5.39% year to date and is trading higher in the premarket. Dividend yield: 3.5%. Average analyst target return potential: +28.4%.
ALSO, this morning: Trans Union, Eli Lilly, 3M, Ares Capital, Sherwin-Williams, and Archer-Daniels-Midland beat on both EPS and Revenue. Polaris, Raytheon, Invesco, and General Electric all beat on EPS but missed estimates on Revenues.
THE MARKETS
Stocks rose to new highs yesterday in a broad rally ahead of tech earnings. The S&P500 climbed by +0.47%, the Dow Jones Industrial Average added +0.18%, the Nasdaq rose by +0.90%, the Russell 2000 jumped by +0.93%, and the S&P500 ESG Index traded higher by +0.50%. Bonds rose and 10-year Treasury yields were flat at 1.63%. Cryptos rose by +3.37% and Bitcoin gained by 2.26%.
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