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.
Jobless Claims, Q3 Earnings Mixed: AAL, LUV, UPS and More
Read MoreHide Full Article
Thursday, October 24, 2024
Pre-market futures are mixed on a plethora of data this morning. Weekly Jobless Claims and some key Q3 earnings reports from a wide array of industries are having some effect here, as are the pending news items in the next couple weeks, culminating in the General Election on November 5th and a new Fed decision on interest rates on November 7th.
The Dow is -71 points at this hour, balanced somewhat by the +27 points on the S&P 500 and +181 points on the Nasdaq. Bond yields continue to drift higher: now at +4.218% on the 10-year and +4.064% on the 2-year.
Initial Jobless Claims Down to 227K, Longer-Term Up to 1.9B
A surprise on Weekly Jobless Claims numbers comes from expectations of an impact from two hurricanes that struck Florida in the past couple weeks that failed to show up. Headline Initial Jobless Claims came in at 227K, well below the 245K expected and slightly upwardly revised 242K the previous week.
Longer-term Continuing Claims, however, surged to their highest level in three years to 1.897 million. From the second half of 2023 and the first half of 2024, we had been plateauing around 1.8 million longer-term jobless claims, but this looks to be tacking northward over the past three weeks.
American Airlines Posts +130% Earnings Surprise
American Airlines (AAL - Free Report) reported Q3 earnings this morning, far outperforming estimates on its bottom line: earnings of 30 cents per share surged past the 13 cents in the Zacks consensus for an earnings beat of +130.77%. This tally was still below the year-ago level of 38 cents per share. This was the third earnings beat for AAL in the past four quarters.
Revenues also outpaced expectations, but not by nearly as much: $13.65 billion bettered the $13.49 billion analysts were projecting. This number slightly outperforms the year-ago revenue print, for an all-time-high in quarterly sales. For more on AAL’s earnings, click here.
Southwest Performs Even Better in Q3
For its part, American rival Southwest Airlines (LUV - Free Report) posted a +200% earnings beat, reporting 15 cents per share versus 5 cents in the Zacks consensus. (This is still less than half of the 38 cents per share reported for Q3 of 2023.) Revenues of $6.87 billion amounted to a +1.08% positive surprise. For more on LUV’s earnings, click here.
UPS Mixed in Q3 Report
Delivery and logistics major United Parcel Service (UPS - Free Report) also notched better-than-expected earnings this morning — $1.76 per share versus $1.65 expected, for a 6.67% surprise — while basically coming in flat — officially -0.09% — on revenues, to $22.25 billion. Shares are up +9% on this news, though still down overall year to date. For more on UPS’ earnings, click here.
Hasbro Flat in Pre-Market After Beating on Q3 Earnings
An impressive bottom line for toymaker Hasbro (HAS - Free Report) — earnings of $1.73 per share versus $1.31 expected — was not enough to keep shares buoyant in today’s pre-market. That’s because revenues in the quarter came in -1.1% lower to $1.28 billion. This is what tends to happen on a mixed report when your stock is up +37% year to date. For more on HAS’ earnings, click here.
Northrop Grumman Also Mixed in Q3
Aerospace and defense major Northrop Grumman (NOC - Free Report) also outperformed on its Q3 bottom line this morning, reporting earnings of $7.00 per share versus $6.07 estimated, for a positive earnings surprise of +15.3%. But, as we’ve seen elsewhere this morning, top-line sales of $10 billion missed the Zacks consensus by -2.25%. Pre-market futures are up slightly on the news; Northrop Grumman stock has underperformed the S&P 500 year to date. For more on NOC’s earnings, click here.
What to Expect in the Stock Market Today
After the market opens this morning, we look for September numbers on S&P flash Manufacturing and Services PMI data, both of which are expected to inch up month over month. Also, New Home Sales for September look to grow to 720K from 716K reported last month.
Also, more earnings reports are on the way in this, the busiest day of Q3 earnings season so far. Deckers (DECK - Free Report) , Skechers (SKX - Free Report) and VeriSign (VRSN - Free Report) are among the companies reporting after today’s closing bell.
Image: Bigstock
Jobless Claims, Q3 Earnings Mixed: AAL, LUV, UPS and More
Thursday, October 24, 2024
Pre-market futures are mixed on a plethora of data this morning. Weekly Jobless Claims and some key Q3 earnings reports from a wide array of industries are having some effect here, as are the pending news items in the next couple weeks, culminating in the General Election on November 5th and a new Fed decision on interest rates on November 7th.
The Dow is -71 points at this hour, balanced somewhat by the +27 points on the S&P 500 and +181 points on the Nasdaq. Bond yields continue to drift higher: now at +4.218% on the 10-year and +4.064% on the 2-year.
Initial Jobless Claims Down to 227K, Longer-Term Up to 1.9B
A surprise on Weekly Jobless Claims numbers comes from expectations of an impact from two hurricanes that struck Florida in the past couple weeks that failed to show up. Headline Initial Jobless Claims came in at 227K, well below the 245K expected and slightly upwardly revised 242K the previous week.
Longer-term Continuing Claims, however, surged to their highest level in three years to 1.897 million. From the second half of 2023 and the first half of 2024, we had been plateauing around 1.8 million longer-term jobless claims, but this looks to be tacking northward over the past three weeks.
American Airlines Posts +130% Earnings Surprise
American Airlines (AAL - Free Report) reported Q3 earnings this morning, far outperforming estimates on its bottom line: earnings of 30 cents per share surged past the 13 cents in the Zacks consensus for an earnings beat of +130.77%. This tally was still below the year-ago level of 38 cents per share. This was the third earnings beat for AAL in the past four quarters.
Revenues also outpaced expectations, but not by nearly as much: $13.65 billion bettered the $13.49 billion analysts were projecting. This number slightly outperforms the year-ago revenue print, for an all-time-high in quarterly sales. For more on AAL’s earnings, click here.
Southwest Performs Even Better in Q3
For its part, American rival Southwest Airlines (LUV - Free Report) posted a +200% earnings beat, reporting 15 cents per share versus 5 cents in the Zacks consensus. (This is still less than half of the 38 cents per share reported for Q3 of 2023.) Revenues of $6.87 billion amounted to a +1.08% positive surprise. For more on LUV’s earnings, click here.
UPS Mixed in Q3 Report
Delivery and logistics major United Parcel Service (UPS - Free Report) also notched better-than-expected earnings this morning — $1.76 per share versus $1.65 expected, for a 6.67% surprise — while basically coming in flat — officially -0.09% — on revenues, to $22.25 billion. Shares are up +9% on this news, though still down overall year to date. For more on UPS’ earnings, click here.
Hasbro Flat in Pre-Market After Beating on Q3 Earnings
An impressive bottom line for toymaker Hasbro (HAS - Free Report) — earnings of $1.73 per share versus $1.31 expected — was not enough to keep shares buoyant in today’s pre-market. That’s because revenues in the quarter came in -1.1% lower to $1.28 billion. This is what tends to happen on a mixed report when your stock is up +37% year to date. For more on HAS’ earnings, click here.
Northrop Grumman Also Mixed in Q3
Aerospace and defense major Northrop Grumman (NOC - Free Report) also outperformed on its Q3 bottom line this morning, reporting earnings of $7.00 per share versus $6.07 estimated, for a positive earnings surprise of +15.3%. But, as we’ve seen elsewhere this morning, top-line sales of $10 billion missed the Zacks consensus by -2.25%. Pre-market futures are up slightly on the news; Northrop Grumman stock has underperformed the S&P 500 year to date. For more on NOC’s earnings, click here.
What to Expect in the Stock Market Today
After the market opens this morning, we look for September numbers on S&P flash Manufacturing and Services PMI data, both of which are expected to inch up month over month. Also, New Home Sales for September look to grow to 720K from 716K reported last month.
Also, more earnings reports are on the way in this, the busiest day of Q3 earnings season so far. Deckers (DECK - Free Report) , Skechers (SKX - Free Report) and VeriSign (VRSN - Free Report) are among the companies reporting after today’s closing bell.
Questions or comments about this article and/or author? Click here>>