Market Momentum Continues with Strong Earnings
The market is poised for a higher open today, building on the momentum of the past five sessions. The S&P 500 and Dow have both seen gains, while the Nasdaq has logged back-to-back increases.
Earnings Season Heats Up
Several major companies have reported impressive quarterly earnings, driving their stock prices higher. Netflix, for example, saw a 15% surge after delivering monster beats on both the top and bottom lines. The streaming giant added a record 19 million new customers, a significant milestone.
United Airlines Soars
United Airlines reported blowout quarterly numbers, crushing estimates on earnings per share and revenue. The airline’s pricing power was on full display, with higher prices contributing to better-than-expected EPS.
GE Vernova Sees Huge Orders
GE Vernova has seen a significant increase in orders, driven by a return to nuclear energy from existing stock. The company is working to meet demand and is hiring to support its growth. Its focus on natural gas and electrification is also paying off.
Abbott Laboratories Reports Mixed Results
Abbott Laboratories matched estimates on quarterly earnings but missed on revenue. While the company’s full-year earnings per share guidance was slightly lower than expected, management may be taking a conservative approach.
Johnson & Johnson Sees Cancer Drug Growth
Johnson & Johnson reported better-than-expected quarterly earnings, driven by growth in its cancer drug segment. The company saw significant sales of Stelara for Crohn’s disease and Darzalex for multiple myeloma.
Procter & Gamble Beats Estimates
Procter & Gamble beat estimates on quarterly EPS and revenue, with good organic sales growth. The company also reiterated its fiscal 2025 guidance, providing a positive outlook for the future.
Medical Breakthroughs
A recent study in the Lancet medical journal highlighted the importance of reducing blood pressure to prevent cardiovascular disease. Initial readouts suggest that GLP-1s can help achieve this goal. Eli Lilly and Novo Nordisk are leading the way in GLP-1 research.
Microsoft and Apple Ahead of Earnings
Morgan Stanley has cut its price target on Microsoft ahead of next week’s earnings, citing low expectations. Meanwhile, Barclays has lowered its price target on Apple, citing concerns ahead of its earnings report. Despite these concerns, both companies remain strong players in their respective markets.
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