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00:00A lot going on in this market today, Carol Masser with the NASDAQ 100 flirting with corrections territory.
00:06And we're going to get a slew of earnings after the bell, including from Ford and Visa.
00:10Yeah, looking forward to those earnings.
00:12I'm already also thinking about tomorrow when we get some big tech earnings.
00:14We've got a Fed decision.
00:16But once again, you know, you've got an S&P 500 that's little change.
00:20And yet, go inside the index, guys, and you'll notice that most names are actually higher in today's session with
00:26some significant gains to the upside.
00:27I know earnings is what everybody's watching, but I'm also I want to be a fly on the wall in
00:31Washington, D.C., where the Federal Reserve is meeting.
00:35The FOMC, Kevin Worsh's second meeting as Fed chair, Emily.
00:41Citadel Security says he's going to raise or not he, but the committee will raise rates tomorrow.
00:46We'll see what happens.
00:47You have to wonder what this does to the mega caps that are under pressure today.
00:52It's interesting to see three days in a row now of rates actually moving lower.
00:57And yet that's not providing any relief today for the NASDAQ 100.
01:00Yeah, not at all.
01:01And we talk about this drop that we've seen in some of these tech names.
01:05In fact, for the Philadelphia Semiconductor Index heading for a fourth straight day of losses.
01:09And it's really causing a lot of soul searching, not so much about the valuations of this company, but obviously
01:14about the circularity of some of these financing deals,
01:17the idea that everything is so interconnected and all it may take is just one of these hyperscalers to actually
01:23say something negative that would cause everyone to react.
01:27For today, though, the losses are modest.
01:29And in fact, you do have some green on your screen, including for the Dow Jones Industrial Average, up about
01:341 percent on the day, adding more than 500 points.
01:37The S&P 500 on a market cap basis is down about two-tenths of a percent on the day.
01:42We should point out the equal weighted S&P 500 is actually higher by about 1.1 percent, which maybe
01:47is a testament to the fact that there is a rotation going on underneath the surface.
01:51The NASDAQ composite lower by two-tenths of a percent.
01:54The NASDAQ 100 lower by one percent.
01:57The Philadelphia Semiconductor Index down by 4.4 percent in the Russell 2000.
02:01It's going to add about six points or two-tenths of one percent.
02:04All right, guys, we're starting to get some earnings crossing the Bloomberg Terminal.
02:07Caesar's out.
02:09Second quarter loss per share of 30 cents.
02:12Second quarter net revenue of $3 billion.
02:15So we're just getting a few headlines here.
02:18I should say that – let me just go here as we get more.
02:21It looks like same-story net revenue for the second quarter missed the average analyst estimate.
02:25That's $1.02 billion versus an estimate of $1.05 billion.
02:30You're seeing the stock so far unchanged.
02:33Just looking to see what else we're getting.
02:35We mentioned the loss per share of 30 cents.
02:37Operating income of $513 million.
02:39Adjusted EBITDA, $920 million, and that was a big miss.
02:43$960.7 million was what the street was forecasting.
02:46But again, stock not moving too much right now.
02:49Remain in the after hours.
02:50I do want to go to Corvo.
02:51Of course, that company now reporting earnings as well.
02:54The share is oscillating between gains and losses.
02:56That is adjusted operating income did beat at about $178 million.
03:01Adjusted EPS did beat at $1.64.
03:04The street on average was looking for $1.10.
03:06And revenue overall at $784.
03:09We'll round it up $785 million.
03:13And that is a beat over the average of street estimates.
03:17And I'm just going to – we're going to hold off on this other headline here.
03:22Actually, we are getting a headline now that Skyworks and Corvo report an expected team for a combined company.
03:30I think we need to dig a little bit deeper into this to find out exactly what's going on.
03:33But we're now learning that Corvo is discontinuing.
03:35Its conference call is discontinuing, providing forward guidance.
03:38Now we're getting Skyworks earnings crossing the wire right now.
03:41And I think we should dive a little bit deeper into this because if that headline is correct, this does
03:45appear to be some M&A in the chip space.
03:47I'm seeing a press release from Skyworks right now that says it is reporting third-quarter fiscal results.
03:55The company also announcing key steps toward a combination with Corvo.
03:59The Corvo regulatory approval is progressing, announces expected a leadership team for a combined company,
04:04and anticipates raising approximately $2 billion of acquisition debt financing.
04:10Corvo saying that it announces a new capital allocation framework for a combined company
04:14and a new stock repurchase authorization of $2 billion.
04:17Okay. I mean, we kind of already knew this.
04:19I'm just curious as to why, you know, what the sort of change is here.
04:23I mean, they had sort of announced this back in October when we had talked about that.
04:27Yeah, go ahead.
04:27They said that they are now optimistic they can do this within the calendar year, that they can close.
04:32Yeah.
04:32And they're preparing to close, or rather optimistic we can close within the calendar year.
04:35We will be preparing to close as early as within the fiscal year.
04:38The steps we're announcing today are financing plans, the combined company's expected leadership team,
04:43and a new capital allocation framework are about being ready to execute from day one.
04:47Okay. All right. Yeah. A little confusing there.
04:51Okay. So we're watching shares of that.
04:52Not a ton of movement right now, but let's go back to the IMAP before we get some more earnings.
04:57It was a largely green day for the index level, the S&P 500 finishing the day up two-tenths
05:04of 1%.
05:05As you can see, though, IT was the sector dragging down the index energy as well.
05:11And then industrials and utilities and real estate also in the red.
05:15I want to say that this is an AI data center risk-off trade,
05:20because all those sectors kind of do benefit from the build-out of artificial intelligence.
05:24And so, again, it was a risk-off on the AI trade, health care, consumer staples, materials,
05:30some of those kind of safe havens in the equity market in the green today.
05:35All right, guys, to some of the individual gainers as we continue to watch for some more earnings to cross.
05:40Kind of going old school for two of my picks.
05:42Coca-Cola up 5% in today's session.
05:45The company raised its full-year outlook, bolstered by demand last quarter,
05:48while it served as a major sponsor of the FIFA World Cup.
05:51So it benefited, now seeing organic sales growth of 5%.
05:54They raised the forecast for earnings per share growth to as much as 8%.
05:58So topping earnings and sales expectations for the last quarter.
06:01Organic sales jumping 7% in North America, where, as you know, the World Cup was hosted.
06:06Stock, by the way, up about 26% year-to-date.
06:09So we've seen quite a run.
06:10I'm going to go over to Boeing.
06:12This one also some outperformance today, up almost 4.8% in today's session.
06:17Boeing generated better-than-expected cash flow in the second quarter on continued strong demand
06:22for its aircraft, excuse me.
06:24Company reported free cash flow of $631 million, driven by higher airplane deliveries,
06:29and solidly beating analyst estimates of $331 million cash outflow.
06:35Boeing said it still aims to generate $1 billion to $3 billion in free cash this year,
06:39despite incurring a fresh $280 million charge for the Air Force One program.
06:43We got some more earnings from Ford.
06:45Yeah, Ford out with its earnings adjusted EPS in the quarter, a beat, $0.42 a share.
06:50The street was looking for $0.36, but let's push forward.
06:52The company says that for the full year, it is anticipating earnings before interest and taxes,
06:58so just EBIT, $10 billion to $11 billion.
07:01That appears to be a nudge up from its previous guidance of about $8.5 to $10.5 billion overall.
07:07So basically a beaten and raised quarter here for Ford, as far as some of their numbers for the actual
07:14quarter that just passed.
07:16We talk about adjusted EPS at $0.42 on the top of average analyst estimates of $0.36 a share.
07:23But there was a net loss that I think we already knew was coming here because of that $3.6
07:28billion charge tied to the EV business.
07:31All right, let's go to Visa.
07:33Already in the news today, earlier we heard that the company was cutting 7% of its workforce,
07:37but Visa out with its third-quarter adjusted EPS of $3.32 a share.
07:42That's a beat, folks.
07:44$323 was the street estimate.
07:46Third-quarter net revenue coming in better than forecast to $11.6 billion,
07:50and that compares with the estimate of $11.4 billion.
07:54And then there's third-quarter total Visa process transactions coming in, $71.7 billion.
08:01Street estimate was a little bit less than that at $71.17 billion.
08:05But, Tim, we've got the stock down about 1% here aftermarket.
08:08Yeah, Visa down about 1%, as Carol mentioned.
08:10We look to this company for an idea of what people are buying and how resilient customers are.
08:16Visa coming out and saying that the consumer and business spending remains resilient.
08:19To go over some of these numbers again, adjusted EPS coming in above estimates at $3.32.
08:25Third-quarter net revenue at $11.6 billion, that is above estimates,
08:29and total process transactions coming in above estimates at $71.7 billion.
08:34Third-quarter cross-border volumes at constant currency up 13%.
08:38Shares higher by about 1% right now.
08:40Yeah, I do want to go back to Ford here and just kind of parse some of these numbers here
08:44because we talk about the breakdown of their various businesses.
08:47So, in the most recent quarter, Ford Pro was up.
08:50They posted revenue of about $17.8 billion.
08:53That's basically in line with estimates here.
08:56Ford Blue, though, and this is, of course, where a lot of people have sort of looked,
08:59the revenue there at $26.1 billion.
09:02That's below what the street was looking for of about $25.6.
09:05We'll round that up to about $25.7.
09:07So, a big miss there.
09:09And, of course, we know the troubles going on with their Model E business there,
09:12which, of course, they have pulled back.
09:14I do also want to point out some interesting commentary that they're all posting in here
09:18that they now see U.S. automobile prices increasing this year,
09:21only saying only going to be about 0.5% here.
09:25But the idea here that they do have some expectation here of auto prices going up in aggregate.
09:32Okay, you're talking trucks and cars.
09:34I'm talking Toblerone and Oreo.
09:37Mondelis shares in the after hours.
09:39Well, I should say, just go with numbers here right now.
09:43Fiscal year, organic net revenue coming in at least plus 2%.
09:47Saw 0% to 2%.
09:49Shares of Mondelis up about 1.5%.
09:51Second quarter, EPS coming in at $1.20.
09:54Second quarter, net revenue coming in at $9.36 billion.
09:58That beat estimates.
09:59Second quarter, adjusted EPS coming in above estimates at $0.73 a share.
10:03Mondelis international shares up by about 1.5%.
10:06Okay, and just like Visa, Mondelis is another good kind of gauge of the consumer health in the U.S.
10:11And right now, it looks like pretty solid.
10:13The company also said that they expect at least 2% organic net revenue growth.
10:18Reflects the strength of its year-to-date performance as well.
10:22All right, and I think we have one last earning.
10:26Seagate coming out, just crossing the Bloomberg terminal.
10:28Let's just go to it real quickly.
10:30Let's go to the outlook.
10:31First quarter revenue, $4 billion to $4.2 billion.
10:33That's way above what the street was looking for, $3.79 billion.
10:36Fourth quarter revenue also coming in better than expected, $3.63 billion versus an estimate of $3.49 billion.
10:43Fourth quarter, adjusted EPS, $5.71 a share.
10:46Street was looking for $5.08 a share.
10:49And as a result, not a surprise, stock is up at least initially about 4.5% here in the
10:54aftermarket.
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