We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markets Stampede into the Green; CVS, GSK Beat, YUM Mixed
Read MoreHide Full Article
Wednesday, February 9, 2022
Market indexes seem to have found their footing over the past week and a half — Monday’s sell-off notwithstanding — as pre-market futures are all in the green a half hour before Wednesday’s opening bell: the Dow is +245 points at this hour, the Nasdaq is +185 and the S&P 500 +40. Coming out of correction territory, the Nasdaq is now -9.3% from November highs, the S&P -5.1% and the Dow -2.4% from highs reached in early January.
A strong employment report late last week, along with announcements from states around the country lifting their Covid restrictions as the Omicron variant abates. While there’s always the possibility another variant may be lurking around the corner — we’ve been at this almost exactly two years now, after all — seeing our economy gaining in growth is a good reason for investors to become a little less risk-averse.
Atlanta Fed President Raphael Bostic also appeared on CNBC this morning, expressing optimism that supply-chain issues — in the U.S. and across the globe amid our trading partners — are abating, which would lead to some slack in goods availability, thus allowing for lower prices which would stem the tide of inflation. No doubt inflation is here to stay; the issue, according to Bostic, has to do with the trajectory of said inflation. To flatten at +2% would be optimum.
Q4 earnings for CVS Health (CVS - Free Report) show a beat on both top and bottom lines: earnings of $1.98 per share outpaced expectations by 4 cents, while revenues of $76.6 billion in the quarter topped the Zacks consensus by +0.79%. Covid vaccinations assisted foot traffic in CVS stores during the quarter. However, an in-line revenue guidance for full-year 2022 is seen as a disappointment, and shares are down -2.5% in today’s pre-market. For more on CVS’ earnings, click here.
GlaxoSmithKline (GSK - Free Report) also outperformed expectations on top and bottom lines this morning, with 70 cents per share on $13 billion (translated into U.S. dollars) beating the 63 cents per share and $12.62 billion expected, respectively. Pharma sales grew 25% while its Consumer Healthcare division, looking to be spun off after rejecting Unilever’s (UL - Free Report) offer to purchase it, was +10% in the quarter. For more on GSK’s earnings, click here.
Quick-service restaurant giant Yum Brands (YUM - Free Report) posted its first earnings miss in four quarters: $1.02 per share versus $1.08 expected, and down from the $1.15 per share in the year-ago period. Yet sales in the quarter surpassed expectations to $1.89 billion, for a +0.93% beat. Shares are trading higher on raising comps, filling in its -10% sell-off year to date. For more on YUM’s earnings, click here.
Image: Shutterstock
Markets Stampede into the Green; CVS, GSK Beat, YUM Mixed
Wednesday, February 9, 2022
Market indexes seem to have found their footing over the past week and a half — Monday’s sell-off notwithstanding — as pre-market futures are all in the green a half hour before Wednesday’s opening bell: the Dow is +245 points at this hour, the Nasdaq is +185 and the S&P 500 +40. Coming out of correction territory, the Nasdaq is now -9.3% from November highs, the S&P -5.1% and the Dow -2.4% from highs reached in early January.
A strong employment report late last week, along with announcements from states around the country lifting their Covid restrictions as the Omicron variant abates. While there’s always the possibility another variant may be lurking around the corner — we’ve been at this almost exactly two years now, after all — seeing our economy gaining in growth is a good reason for investors to become a little less risk-averse.
Atlanta Fed President Raphael Bostic also appeared on CNBC this morning, expressing optimism that supply-chain issues — in the U.S. and across the globe amid our trading partners — are abating, which would lead to some slack in goods availability, thus allowing for lower prices which would stem the tide of inflation. No doubt inflation is here to stay; the issue, according to Bostic, has to do with the trajectory of said inflation. To flatten at +2% would be optimum.
Q4 earnings for CVS Health (CVS - Free Report) show a beat on both top and bottom lines: earnings of $1.98 per share outpaced expectations by 4 cents, while revenues of $76.6 billion in the quarter topped the Zacks consensus by +0.79%. Covid vaccinations assisted foot traffic in CVS stores during the quarter. However, an in-line revenue guidance for full-year 2022 is seen as a disappointment, and shares are down -2.5% in today’s pre-market. For more on CVS’ earnings, click here.
GlaxoSmithKline (GSK - Free Report) also outperformed expectations on top and bottom lines this morning, with 70 cents per share on $13 billion (translated into U.S. dollars) beating the 63 cents per share and $12.62 billion expected, respectively. Pharma sales grew 25% while its Consumer Healthcare division, looking to be spun off after rejecting Unilever’s (UL - Free Report) offer to purchase it, was +10% in the quarter. For more on GSK’s earnings, click here.
Quick-service restaurant giant Yum Brands (YUM - Free Report) posted its first earnings miss in four quarters: $1.02 per share versus $1.08 expected, and down from the $1.15 per share in the year-ago period. Yet sales in the quarter surpassed expectations to $1.89 billion, for a +0.93% beat. Shares are trading higher on raising comps, filling in its -10% sell-off year to date. For more on YUM’s earnings, click here.
Questions or comments about this article and/or its author? Click here>>