Author: BlackMask Financial

Posted on

US GDP grows 6.4% in Q1

The resurgent U.S. economy grew 6.4% in first quarter and even faster growth lies ahead

Posted on

U.S. jobless benefit claims continue to grind lower

Applications for benefits sink 13,000 to pandemic low 553,000

Jobless benefit claims fell to 553,000 last week from a revised 566,000 a week earlier, the U.S. Labor Department said Thursday. With the revisions, this is the lowest level of claims since the pandemic struck last year. Economists surveyed by the Wall Street Journal had been looking for a drop to 528,000 new claims. Claims in the prior week were revised from the initial estimate of 547,000. The four-week moving average for claims, which smooths out volatility, fell 44,000 to 611,750. That is the lowest level since March 2020. Texas and Wisconsin had big drops in claims last week. Virginia, Rhode Island. Michigan and West Virginia experienced sizable gains. Applications for benefits were filed last week through a temporary relief program fell by 11,609 to 121,749. The number of people already collecting the traditional unemployment benefit increased a slight 9,000 to a seasonally adjusted 3.66 million in the week ended April 17. Workers getting extra benefits through an emergency program funded by the federal government fell by 413,224 to 5.2 million. Workers can claim these benefits until September.

Taken together 16.5 million people were collecting benefits from eight separate state and federal programs as of April 10, down from 17.4 million in the prior week.

Jobless claims are a proxy for layoffs. Claims have been trending lower as the economy reopens and the labor market improves. Economists think this trend will continue.  “Barring a resurgence in virus cases and a reversal of the progress made on reopening, we doubt that we will see a significant back up in claims anytime soon,” said Thomas Simons, economist at Jefferies.

Posted on

Caterpillar posts revenue of $11.9B in Q1, up 12% McDonald’s tops expectations with revenue of $5.1B in Q1 Kraft Heinz net sales reach $6.39B, up 3.9% YoY Mastercard EPS jump 9% to $1.83 in first quarter

RTTNews) – Caterpillar Inc. (CAT) released a profit for its first quarter that advanced from last year. The company’s profit came in at $1.53 billion, or $2.77 per share. This compares with $1.09 billion, or $1.98 per share, in last year’s first quarter. The company’s revenue for the quarter rose 11.7% to $11.89 billion from $10.64 billion last year. Caterpillar Inc. earnings at a glance: -Earnings (Q1): $1.53 Bln. vs. $1.09 Bln. last year. -EPS (Q1): $2.77 vs. $1.98 last year. -Revenue (Q1): $11.89 Bln vs. $10.64 Bln last year.

McDonald’s tops expectations with revenue of $5.1B in Q1

(Reuters) – McDonald’s Corp on Thursday smashed Wall Street estimates for comparable sales and returned to pre-pandemic levels of growth as more consumers, flush with stimulus cash, were drawn to its newly launched crispy chicken sandwiches. McDonald’s rolled out its chicken sandwiches, which come in three different flavors, earlier this year in the United States, looking to tap into a frenzy kicked off by privately owned Chick-fil-A and Restaurant Brands’ Popeyes in 2019. U.S. sales at restaurants open for more than a year rose 13.6%, beating expectations of 9.25%, according to analysts polled by Refinitiv IBES data. First-quarter global comparable sales growth of 7.5% also surpassed pre-pandemic 2019 levels, with many countries, including the United States, easing restrictions on dining out, Chief Executive Officer Chris Kempczinski said. Those numbers trounced expectations of a 4.71% growth.

Kraft Heinz net sales reach $6.39B, up 3.9% YoY

The Kraft Heinz Company reported on Thursday that its net sales for the first quarter of the year increased 3.9% compared to the same period last year climbing to $6.39 billion. The company’s net income surged 49% year-on-year reaching $563 million, as its diluted earnings per share rose from $0.31 to $0.46 constituting a per annum increase of 48.4%. Kraft Heinz Chief Executive Officer Miguel Patricio commented on the earings saying: “Our first quarter was better than expected, with our team delivering strong results on top of exceptional growth last year. Looking forward, we will continue to focus on leveraging our tremendous scale by investing to improve our capabilities and overall agility. As we do, we believe we will come out of this period much stronger, operationally and financially, than we entered.” Kraft Heinz shares were up 1.72% in the premarket trade following the positive earnings report.

Mastercard EPS jump 9% to $1.83 in first quarter

Mastercard reported on Thursday its earnings per share increased 9% to $1.83 in the first quarter of 2021 on net income of $1.8 billion. The financial services company also said that its revenue rose 4% to $4.2 billion, above expectations as spending returned to pre-pandemic levels. According to Mastercard CEO Michael Miebach, the company has been “encouraged” by signs of recovery from the health crisis, adding that “we continued to execute against our strategic objectives, as we signed notable new deals and broadened existing relationships with key global partners.”

 

Posted on

S&P 500 Index: Investing at all-time highs pays off – JP Morgan

The market has had an impressive rally over the past year, rising 91% on a total return basis since the March lows. As a result, the market has reached a new high 27 times so far this year, already outpacing the average number of all-time highs achieved per year since 1988. Should “do-it-yourselfers” invest at all-time highs? According to Jordan Jackson, Global Market Strategist at JP Morgan, history suggests that now may be just as good as any to put cash to work in the market – especially if you’re investing for the long run like retirement. “While we believe the path of least resistance for markets is higher, it’s reasonable to expect some choppiness as elevated valuations, risks of a new COVID-19 strain outbreak and materially higher inflation, all pose risks to the outlook.” “ For many do-it-yourselfers (‘DIYers’) and other retail investors, as the market continues to hit new all-time highs, it’s likely they may want to pull back on risk even further. However, history suggests that now may be just as good as any to put cash to work in the market – especially if you’re investing for the long run like retirement.” “If you invested in the S&P 500 on any random day since the start of 1988, on average, your one-year total return was +11.9%. Perhaps somewhat surprisingly, if we only consider investments on days when the S&P 500 closed at an all-time high, your average one-year total return was +14.3%. Moreover, if we look at cumulative total returns three or five years out, the takeaway is the same.” “While we, of course, cannot time the market, fundamentals remain supportive: monetary policy should remain accommodative over the next couple of years, further fiscal stimulus is on the horizon and corporate earnings should rebound strongly as the pandemic recedes, all providing support for equities over the medium-term. With this in mind, investors saving for retirement should be positioned more aggressive in their allocations.”

Posted on

U.S. Economy Appears to Be Lifting Off

U.S. Economy Appears to Be Lifting Off

GDP likely grew robustly in the first quarter as the government distributed Covid-19 stimulus checks and consumers stepped up spending

The U.S. economy appears to have expanded rapidly in the first quarter, extending what economists project will be a robust, consumer-led recovery from the pandemic this year. Fueled by a flood of federal cash to households and rising vaccinations, the nation’s gross domestic product likely grew at a 6.5% seasonally adjusted, annual rate in the first three months of 2021, according to economists surveyed by The Wall Street Journal. Official figures on GDP—the broadest measure of goods and services produced across the U.S—are set to be released by the Commerce Department on Thursday at 8:30 a.m. ET. Output grew at a 4.3% rate in the fourth quarter of last year after rising at a 33.4% clip in the third. The rebound from a steep downturn last spring early in the pandemic was quicker than what many economists expected but still left the economy in a hole. For all of last year, the economy shrank by 2.4% when comparing fourth-quarter output to a year earlier—the first contraction since the 2007-09 recession. The recovery likely accelerated in the first quarter as more people received a Covid-19 vaccine, states and cities lifted business restrictions, and stimulus payments landed in bank accounts. Consumer confidence rose in April to the highest level in 14 months, the Conference Board said Tuesday. “The U.S. economy is clearly in the nascent period of the recovery and headed for a robust expansion,” said Joseph Brusuelas, chief economist at RSM, a consulting firm. It is possible first-quarter output may have returned to pre-pandemic levels, he said. Nick Note: by the time their economic models show its the hottest economy they will go all in and we will go all out. This rally has legs in fact it has rockets……

Posted on

Facebook revenue beats estimates at $26.17 billion in Q1 Apple reports revenue of $89.6B in Q2, up by 54% YoY eBay Q1 revenue surges 42% to $3.02 billion Qualcomm’s Q2 revenue at $7.9B, up 52% YoY

Facebook Inc. announced on Wednesday the company’s first-quarter revenue annually surged 48% in the trimester ending March 31 to reach $26.17 billion. Facebook’s net income skyrocketed 94% to $9.5 billion, with diluted earnings per share at $3.30. In the same quarter, the Facebook monthly active users jumped 10% to 2.85 billion. “We had a strong quarter as we helped people stay connected and businesses grow. We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy,” CEO Mark Zuckerberg commented in the report. Facebook said it expects advertising revenue growth over the course of 2021, with total revenue growth remaining stable or modestly accelerating. The tech giant’s stocks surged 4.75% to $321.82 in the after-hours trading following the earnings announcement.

Apple reports revenue of $89.6B in Q2, up by 54% YoY

Apple Inc. stated on Wednesday that its revenues for the second quarter of fiscal 2021 came in at $89.6 billion, marking a 54% rise in comparison with the same three-month period a year prior. International sales participated in the second trimester’s total revenues by 67%, the firm unveiled. The technology behemoth’s net income landed at $23.6 billion in the same quarter, rocketing 110% annually to translate to diluted earnings per share of $1.4, while its operating income amounted to $27.5 billion as it soared 114% year-on-year. Apple’s sales of iPhone went up by a whopping 65.5% in the quarter ended on March 27, compared to the same trimester of fiscal 2020 to reach $47.9 billion. Both the revenue figure and the company’s net income came in well above the analysts’ expectations. “This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” Apple CEO Tim Cook commented. Apple’s shares jumped by 3.29% in the after-hours trading, after the results came out.]

eBay Q1 revenue surges 42% to $3.02 billion

eBay Inc. posted its first-quarter earnings results on Wednesday, saying that its revenue annually soared 42% to reach $3.02 billion. eBay’s net income jumped 45% to $758 million, with diluted earnings per share of $1.09. Annual active buyers rose by 7% to 187 million, while sellers grew 8% to 20 million. “We delivered another strong quarter for the company and an excellent start to the year for our buyers and sellers. We generated tremendous volume and earnings, with revenue growth the highest it has been since 2005,” CEO Jamie Iannone said in the report. Commenting on the outlook for the second quarter, eBay noted it expects between 8% and 10% revenue growth. However, the company’s stocks plunged 5.63% to $58.81 per share in the after-hours trading following the earnings release.

Qualcomm’s Q2 revenue at $7.9B, up 52% YoY

Qualcomm Inc.’s revenue in the second fiscal quarter of 2021 surged by 52% compared to the same period a year prior to reach $7.9 billion, the company announced on Wednesday. During the year’s second trimester, the company’s net income skyrocketed 276% versus Q2 2020 to stand at $1.8 billion, or $1.53 per diluted share. “Demonstrating the strength of our strategy and our success in execution, we delivered another quarter of year-over-year growth driven by sustained demand for smartphones globally and our ability to increase the scale of our non-handset revenues,” Qualcomm CEO Steve Mollenkopf commented. The company’s shares soared 5.1% in the after-hours trading upon the release of the report. Nick Note: This is hotter then a single, middle aged (dumped  by her first boyfriend) school teacher from the midlands in England living with her mother. Vacationing on the party island of Ibiza .  With a Moroccan stud she just met at a disco high on ecstasy and coke paying for his hotel room..

Posted on

Fed leaves interest rates unchanged…. Very worried about scaring in labor market…. Not time yet to start talking about tapering….

The Federal Open Market Committee (FOMC) unanimously decided on Wednesday to leave interest rates near zero and expects to maintain its monetary policy “until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.” Furthermore, the FOMC acknowledged that progress in vaccinations against the coronavirus and policy support have led to signs of economic strength and rising inflation. However, policymakers conceded that “the ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain.” Finally, the Fed said that it intends to keep its current pace of security purchases at up to $120 billion a month.

Very worried about scaring in labor market

Federal Reserve Chair Jerome Powell stressed on Wednesday that the Fed is “very worried” about scarring in the United States labor market. Powell noted the US hasn’t so far experienced this level of scarring, warning the country remains a long way from full employment. However, he noted the scarring is lower compared to last year’s predictions. The Fed’s chairman concluded by saying that the wages in the US would be rising if labor market conditions were tighter. Powell spoke following the Fed’s decision to leave key interest rates unchanged.

Not time yet to start talking about tapering

Federal Reserve Chairman Jerome Powell said on Wednesday that it is still early to start talking about tapering as the Fed still wants to see “substantial further progress” before it begins to unwind its balance sheet. “We’ll let the public know well in advance. It will take some time before we see substantial further progress,” Powell told reporters. Additionally, the Fed chief said that a transitory rise in inflation above 2% this year would not be enough for the central bank to raise rates. Earlier, the Federal Open Market Committee unanimously decided to leave interest rates near ZERO. Nick Note: The Fed is spiking the punch bowl. And they and their Lemmings are just not sure just yet if this  is the hottest economy and hottest stock market ever….. PERFECT! ………. because we know

Posted on

Starbucks earnings bounce on US sales comeback

Profits at Starbucks doubled in the most recent quarter following a return to sales growth in the Americas after declining due to Covid-19 lockdowns, the coffee giant reported Tuesday. Starbucks raised its full-year profit and revenue forecasts following the results, which also showed a huge surge in China sales. The results “demonstrated impressive momentum in the business with full sales recovery in the US,” the chain’s Chief Executive Kevin Johnson said. “We have positioned Starbucks for the inevitable great human reconnection that we see unfolding the US and will propagate in every market around the world, where people once again connect with others face-to-face,” he said.

Profits for the quarter ending March 28 were $659.4 million, just over twice the level in the year-ago period.

Revenues rose 11.2 percent to $6.7 billion. In the United States, Starbucks notched comparable sales growth of nine percent after a drop of five percent in the prior quarter. US comparable stores plummeted 40 percent in the third quarter of fiscal 2020, the period most affected by Covid-19. In China, Starbucks’ comparable sales jumped 91 percent over the year-ago period. Shares fell 1.9 percent in after-hours trading to $113.90. Nick Note: Lets face facts what is star Bucks…. Its a glorified coffee shop with a wifi connection. A $5.00 cup of shit coffe with a squirt of chocolate sauce. What is signifigant is its a public place that was closed in the height of the global pandemic. Because of its internnationa; presence. I clear demostrates the world is coming back from the dead. And the captive who have just been set free are on a spending bings..

Posted on

US mixed premarket following tech earnings

Wall Street stocks turned a mixed performance on Tuesday ahead of a big batch of tech earnings after the close. At the close, the Dow Jones Industrial Average was up 0.01% at 33,984.93, while the S&P 500 was 0.02% weaker at 4,186.72 and the Nasdaq Composite saw out the session 0.34% softer at 14,090.22. The Dow closed just 3.36 points higher on Tuesday.

Tesla shares were in the red despite the electric carmaker posting record quarterly net incomes of $438.0m, while UPS shares soared after smashing Wall Street estimates with first-quarter revenue growth of 27%.

Alphabet posted a first-quarter profit twice as high as the same time a year earlier, driven by a surge in Google ad sales, while Microsoft reported a surge in sales amid demand for cloud services and PCs amid the Covid-19 pandemic.

On the macro front, S&P/Case-Shiller‘s home price index revealed home prices had seen their biggest gain in 15 years in February, rising 12% year-on-year, up from 11.2% in January, as tight supply and strong demand led to bidding wars. Elsewhere, consumer confidence surged to a 14-month high in April, with rising vaccinations, falling Covid-19 cases and a resurgent US economy easing anxieties. According to the Conference Board, consumer confidence climbed to 121.7 in April from a revised print of 109 for March – the highest level seen since February 2020. Lastly, the Richmond Federal Reserve’s April manufacturing index came in at 17, flat month-on-month and versus expectations for a reading of 22. Also in focus, the Federal Reserve kicked off its two-day policy meeting today, with the central bank not expected to take any action. Nick Note: this week and next wraps up earnings season. A lot of data to slice and dice. We are seeing a downward tilt which is expected. I believe when the cake comes out of the oven their will be a celebration of the greatest market recovery ever..

Posted on

Stock markets dip on caution before Fed, earnings

NEW YORK/MILAN (Reuters) – Shares eased from record peaks on Tuesday as optimism about a global economic recovery was dented by caution before a policy decision by the U.S. Federal Reserve and earnings updates from a number of blue-chip companies.  Many investors, however, stayed on the sidelines ahead of the Fed meeting which ends on Wednesday, when the U.S. central bank is expected to confirm that it will maintain its easy monetary policy to bolster the economy. One area of concern was India, which is struggling with surging coronavirus infections that have overwhelmed its healthcare system. Markets were also awaiting results from U.S. tech heavyweights Microsoft Corp and Alphabet Inc later on Tuesday. Companies that represent about 40% of the S&P 500’s market capitalization report from Tuesday through Thursday. Some analysts say the recent rally has made stocks vulnerable to profit taking, given lofty valuations and high expectations going into the reporting season. “We’ve been in a significant rally for quite some time,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “The laws of gravity tell you that at some point we’re going to see a pullback.” Major U.S. indices were mixed. The Dow Jones Industrial Average rose 3.36 points, or 0.01%, to 33,984.93, the S&P 500 lost 0.9 points, or 0.02%, to 4,186.72 and the Nasdaq Composite dropped 48.56 points, or 0.34%, to 14,090.22.