Home Uncategorized The main news of the stock market for today, May 5, 2022

The main news of the stock market for today, May 5, 2022


Stock market futures are declining after the latest Fed policy update

Futures on US stocks decline at Thursday’s trading session. By and large, it seems that investors are still digesting the points of the last press conference of Fed Chairman Jerome Powell. To begin with, the Federal Reserve raises the short-term interest rate by 0.50%. Although this would be the largest rate increase since May 2000, it will now serve to ease inflationary pressures on consumers. In addition, the central bank is focusing on further raising interest rates, cutting its balance sheet by nearly $ 9 trillion.

To help investors better understand the current situation BlackRock (NYSE: BLK) Chief Investment Officer of Global Fixed Income, Rick Reeder. He writes: “There are negative consequences in all political steps, which, I hope, are muted and less influential than the issue that is being addressed, and today this issue is inflation.“Reader continues,”There are many factors that are not under the control of the Fed (such as supply chain disruptions and geopolitics), but we will closely monitor how the tightening of the Fed’s financial environment affects the broad economy and employment, which are very strong today but can clearly softened along with aggressive monetary policy that fights inflation.

As for the broader scheme of things, I would not be surprised if investors now took a more defensive or cautious position. Despite this, today is another day full of notable salaries, which also need to keep up. As of 4:45 a.m. Eastern Time, the futures of Dow, S&P 500 and Nasdaq are trading lower at 0.56%, 0.80% and 1.06% respectively.

Twilio in the spotlight after reaching earnings estimates in the financial report for the fourth financial quarter

On the revenue front today, Twilio (NASDAQ: TWLO) seems to be one of the best technology stocks to watch. Namely, the company released overall hard figures in its update for the fourth fiscal quarter after yesterday’s close. After plunging, Twilio broke away even in terms of earnings per share, easily surpassing estimates of $ 0.21 per share. In addition, the company earned total revenue of $ 875.4 million, which is also higher than Wall Street forecasts of $ 863.81 million. On an annualized basis, this gives a commendable jump of 48% over the same period last year. In addition, Twilio’s dollar-based revenue (RDNER) grew 126% over the same period. All of this contributes to a pretty good year for the company more broadly.

Twilio’s total revenue for the fiscal year was $ 2.84 billion, a significant increase of 61% over the same period last year. Moreover, the company saw RDNER growth of 131% over the previous fiscal year. CEO Jeff Lawson comments on the company’s latest figures. He notes: “Combining our leading cloud communications platform with the il1 customer data platform from Twilio Segment gives Twilio an unprecedented look at the customer path, and I’ve never been as excited about the company’s future as I am today.“As more and more jobs are choosing hybrid mechanisms, the demand for Twilio services can, in theory, remain. Because of this I could see that TWLO shares are attracting attention in the stock market today.

Source: TradingView

CVS stock growth after higher-than-expected earnings raises annual earnings forecast

At the same time, CVS Health (NYSE: CVS) also now attracts similar attention. In its latest financial release, the company saw revenue of $ 2.22 with revenue of $ 76.83 billion for the quarter. For reference, this is against the consensus forecasts of 2.15 and 75.39 billion dollars. Specifically, CVS says this is due to growing demand for its non-Covid recipes and offerings. This is obvious, as the company’s sales in the same store increased by 10.7% compared to the same period last year. In particular, the segments of pharmacies and stores CVS note an increase in sales in the same store compared to the same period last year by 10.1% and 13.2% respectively.

In detail, CVS notes that its drive to attract new customers, higher prescribing volumes and higher costs associated with seasonal illnesses are key factors in the current momentum. However, CVS is seeing a slowdown in sales related to vaccines and tests against Covid, for the quarter. However, the company seems confident in its ability to further diversify beyond Covid-related healthcare solutions. To achieve this, CVS has and continues to introduce more services in its outlets. This includes, but is not limited to, health insurance and home medical advice. What’s more, CVS is also raising its full-year earnings forecast to a range of $ 8.20 to $ 8.40 compared to the previous benchmark of $ 8.10 to $ 8.30. All this together with the coming wave of the fourth vaccination could lead to today’s CVS campaign.

CVS promotion
Source: TradingView

Earnings on the block after closing the call: what you need to know

Block (NYSE: SQ) will report its latest quarterly financial results after today’s close. Wall Street currently expects earnings of $ 0.19 per share and total earnings of $ 4.2 billion. Another key indicator to note is the Bloc’s gross payments volume (GPV). Analysts predict that it will cost about $ 44.6 billion. Overall, this will be a significant decrease over the same period last year for the Bloc in terms of revenue and earnings per share. In fact, current forecasts point to the company’s first drop in revenue in four years. This would be understandable if demand for the Square Fintech ecosystem declined from the highs of the pandemic era.

More importantly, investors should also note that GPV estimates for Block indicate healthy growth in basic financial services. If the company reports a GPV of $ 44.6 billion, it will give a 34% increase over the same period last year. It should be noted that Block has worked and continues to work to expand its payment ecosystem for a wider audience. This includes efforts to service small and medium-sized businesses, improve services through acquisitions and optimize its Cash App peer-to-peer payment platform. However, after today’s opening of SQ shares should be monitored.

SQ stock
Source: TradingView

Other hot earnings to consider in the stock market today

Speaking of revenue, here are more key players coming to the plate for their latest revenue calls today. In the previous market we have Shopify (NYSE: SHOP), Penn National Gaming (NASDAQ: PENN), Crocs (NASDAQ: CROX), DataDog (NASDAQ: DDOG), Royal Caribbean Cruises (NYSE: RCL), and Wayfair (NYSE: In) on the tap. Not to mention the crude oil giant ConocoPhillips (NYSE: CS) will also report earnings at the same time.

Alternatively, similar FuboTV (NYSE: FUBO), Lucid Motors (NASDAQ: LCID), Clouds (NYSE: NO), Opendoor Technologies (NASDAQ: OPEN), and Free Market (NASDAQ: MELI) announce financial results in the post-market hours. Other well-known firms that should be considered at this time Virgin Galactic (NYSE: SPCE) and DoorDash (NYSE: DASH). Combine all this with monetary policy updates, and investors are definitely looking forward to another busy day in the stock market.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

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