Morning Market Report - January 22, 2020
S&P Futures Look to Open at New Record
Netflix trades higher on almost 9 million new subscribers
Netflix added 8.8 million net global subscribers but just 420,000 new U.S. paid subscribers.
Netflix wrote that “despite the big debut of Disney+ and the launch of Apple TV+, our viewing per membership grew both globally and in the US on a year over year basis, consistent with recent quarters.”
Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million.
But Netflix also acknowledged that growth in the U.S. and Canada is slowing rather dramatically. The company added just 550,000 net subscribers in the region this quarter, and just 420,000 in the U.S., down from 1.75 million in the same quarter one year ago.
Netflix wrote that “despite the big debut of Disney+ and the launch of Apple TV+, our viewing per membership grew both globally and in the US on a year over year basis, consistent with recent quarters.”
Netflix added 8.8 million net subscribers in the fourth quarter, on par with the 8.8 million added last year and ahead of the company’s internal forecast of 7.6 million.
But Netflix also acknowledged that growth in the U.S. and Canada is slowing rather dramatically. The company added just 550,000 net subscribers in the region this quarter, and just 420,000 in the U.S., down from 1.75 million in the same quarter one year ago.
IBM trades almost 5% higher on earnings beat and revenue growth
IBM’s revenue grew slightly in the quarter following five quarters of declines.
Earnings: Excluding certain items, $4.71 per share, vs. $4.69 per share as expected by analysts, according to Refinitiv.
Revenue: $21.77 billion, vs. $21.64 billion as expected by analysts, according to Refinitiv.
In terms of guidance, IBM said that for 2020 it expects $13.35 in earnings per share, excluding certain items. That’s above the $13.29 consensus from analysts surveyed by Refinitiv, and it implies a 4% increase from the prior year. IBM’s revenue will go up year over year in 2020, Jim Kavanaugh, the company’s chief financial officer, told analysts on a conference call on Tuesday. After the call the stock was up 3.8% in extended trading.
Source: CNBC
Earnings: Excluding certain items, $4.71 per share, vs. $4.69 per share as expected by analysts, according to Refinitiv.
Revenue: $21.77 billion, vs. $21.64 billion as expected by analysts, according to Refinitiv.
In terms of guidance, IBM said that for 2020 it expects $13.35 in earnings per share, excluding certain items. That’s above the $13.29 consensus from analysts surveyed by Refinitiv, and it implies a 4% increase from the prior year. IBM’s revenue will go up year over year in 2020, Jim Kavanaugh, the company’s chief financial officer, told analysts on a conference call on Tuesday. After the call the stock was up 3.8% in extended trading.
Source: CNBC
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CDC confirms first US case of coronavirus that has killed 9 in China
Public health officials have confirmed the first U.S. case of a mysterious coronavirus that has sickened hundreds in China, the CDC says.
A male traveler from China has been diagnosed in Snohomish County, Washington State with the Wuhan coronavirus, according to the CDC.
Officials said the patient, a male in his 30s, is “very healthy.” He is currently being isolated at a medical center in the state “out of caution” and “poses little risk” to the public, they said. The CDC said the man reached out to local health authorities last week once he started experiencing pneumonia-like symptoms.
A male traveler from China has been diagnosed in Snohomish County, Washington State with the Wuhan coronavirus, according to the CDC.
Officials said the patient, a male in his 30s, is “very healthy.” He is currently being isolated at a medical center in the state “out of caution” and “poses little risk” to the public, they said. The CDC said the man reached out to local health authorities last week once he started experiencing pneumonia-like symptoms.
Weekly mortgage applications pull back slightly after strong start to 2020
Overall mortgage application volume fell 1.2% last week from the previous week, according to the Mortgage Bankers Association.
Applications to refinance a home loan fell 2% for the week, but were 116% higher than a year ago, when the 30-year fixed was 88 basis points higher.
Mortgage applications to purchase a home also decreased 2% from a week ago but were 8% higher than a year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) was unchanged at 3.87%, with points decreasing to 0.27 from 0.32 (including the origination fee) for loans with a 20% down payment.
Source; CNBC
Applications to refinance a home loan fell 2% for the week, but were 116% higher than a year ago, when the 30-year fixed was 88 basis points higher.
Mortgage applications to purchase a home also decreased 2% from a week ago but were 8% higher than a year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) was unchanged at 3.87%, with points decreasing to 0.27 from 0.32 (including the origination fee) for loans with a 20% down payment.
Source; CNBC
United Airlines profits surge nearly 40% on cheaper fuel and strong demand
United posted net income of $614 million, up 39% from the year-earlier period on revenues of $10.89 billion, nearly 4% higher than a year earlier and slightly above analyst estimates.
The carrier’s per-share earnings came in at $2.67 on an adjusted basis, compared with the $2.65 analysts polled by Refinitiv were expecting.
The carrier’s per-share earnings came in at $2.67 on an adjusted basis, compared with the $2.65 analysts polled by Refinitiv were expecting.
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