Federated Hermes portfolio manager and equity strategist Steve Chiavarone argues investors will start turning to ‘companies that have earnings today,’ including cyclical and defensive stocks, versus those that could have ‘earnings tomorrow.’
U.S. stocks notched early gains as investors took in merger and acquisition news while also prepping for another busy week of earnings with about 80 S&P 500 companies set to report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35089.74 | -21.42 | -0.06% |
| SP500 | S&P 500 | 4500.53 | +23.09 | +0.52% |
| I:COMP | NASDAQ COMPOSITE INDEX | 14098.006675 | +219.19 | +1.58% |
Equity markets ended mixed Friday in another volatile week.
In deal news Monday, Frontier is buying Spirit Airlines in a $3 billion deal, which is aiming to raise competition and give travelers more options to fly to midsized cities as well as regions that are underserved, according to the companies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ULCC | FRONTIER GROUP HOLDINGS | 12.39 | -0.18 | -1.43% |
| SAVE | SPIRIT AIRLINES INC. | 21.73 | +0.04 | +0.18% |
Discount carrier Southwest Airlines and larger carriers Delta, America and United could be active.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 43.66 | +0.22 | +0.51% |
| DAL | DELTA AIR LINES INC. | 39.85 | +0.12 | +0.30% |
| AAL | AMERICAN AIRLINES GROUP INC. | 16.45 | -0.12 | -0.72% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 42.82 | -0.26 | -0.60% |
INFLATION DATA, PELOTON TAKEOVER? AND DISNEY EARNINGS TOP WEEK AHEAD
Peloton spiked higher after The Wall Street Journal reported the cycling giant is a takeover candidate. Possible suitors include Amazon, Nike and Apple, according to reports.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 24.60 | +0.35 | +1.44% |
| AMZN | AMAZON.COM INC. | 3,152.79 | +375.88 | +13.54% |
| NKE | NIKE INC. | 145.39 | +0.08 | +0.06% |
| AAPL | APPLE INC. | 172.39 | -0.51 | -0.29% |
Peloton’s shares have lost over 80% of their value during the past 12 months after a string of negative events, including the death of child on its Tread machine, a natural slowdown from pandemic sales and a skit on the Sex and the City reboot that killed off character Mr. Big, who died riding the bike.
In earnings, Tyson Foods reported revenue of $12.93 billion exceeding estimates despite rising inflation and labor shortages.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSN | TYSON FOODS INC. | 88.29 | -2.03 | -2.25% |
Hasbro also posted revenues that beat expectations jumping over 50% to $2 billion vs. a $1.87 billion estimate. The toymaker also lifted its dividend 3%.
INFLATION DRIVING WORKERS TO WANT HIGHER PAY: WORKFORCE ANALYST
In cryptocurrencies, Bitcoin continued its climb above the $40,000 level.
The 10-year Treasury was at 1.90% on Monday, down from 1.92%.
In energy trading, benchmark U.S. crude fell 26 cents to $92.05 a barrel in electronic trading on the New York Mercantile Exchange. It surged $2.04 on Friday to $92.31. Brent crude, the international standard, added 27 cents to $93.54 a barrel.
