Beat the Street: Goldman Sachs; Bank of America; Johnson & Johnson; Lockheed Martin; US retail sales
Goldman Sachs and Bank of America profit tops estimates. Johnson & Johnson lifts its profit outlook. Lockheed Martin revenue rises on sustained weapons demand.
(Video Transcript Summary)
Earnings reports, and US retail and sales data due
In this episode of Beat the Street, host financial analyst Angeline Ong, shares all the latest market news and data to help you get ahead in trading. She starts by talking about the upcoming earnings reports from big companies like Goldman Sachs, Bank of America, Johnson & Johnson, Lockheed Martin and United Airlines.
These reports can give you an idea of how well these companies are doing and possibly influence the stock market. Ong also mentions that investors are paying attention to the situation in the Middle East, pension plans and important data.
She says the US will soon be releasing retail sales and factory output data, and forecasts are that it will be better than expected.
Wall Street dips slightly, dollar lifts
This caused some minor fluctuations in the market, with Wall Street dipping slightly and the volatility index (VIX) staying relatively the same. Ong also notes that the value of the dollar went up a bit.
Fellow IG financial analyst Jeremy Naylor says that in the earnings reports from Goldman Sachs and Bank of America, both companies surpassed the predictions of experts, with Goldman Sachs doing exceptionally well in trading revenue and Bank of America earning more interest income.
Naylor dives into the stock price charts of both companies and discusses the factors that can affect their performance, both positively and negatively.
Ong moves on to discuss other companies like Johnson & Johnson, Omnicom, Lockheed Martin and United Airlines. Johnson & Johnson raised its profit forecast and benefited from its consumer unit being spun off.
Omnicom is expected to have a boost in quarterly revenue due to increased spending on advertising. Lockheed Martin reported higher sales due to tensions in certain parts of the world, while United Airlines is facing challenges because of conflicts in the Middle East.
High demand for flights but not enough pilots
The guest of honour Frank Holmes, CEO of US Global Investors, comes in to talk about how the travel sector is affected by the uncertainty in the Middle East. Despite the conflict, there is still high demand for flights, especially in the US.
However, there is a shortage of pilots, and airlines need to be adaptable to changing conditions. Holmes also mentions how rising oil prices impact airline profits and how adjustments in pricing may be made to stimulate more demand.
US President Joe Biden's upcoming visit to Israel is discussed and how it can affect the price of oil. Market volatility is also touched upon, with IG's chief market Analyst Chris Beauchamp suggesting that the VIX may start to decrease, indicating a return to strong seasonality for US stocks.
Overall, US stocks have been declining after the release of retail sales data. Ong encourages viewers to follow her on Twitter for more valuable trading insights at @AngelineOng. So, make sure to stay tuned to IGTV for all the latest updates and strategies to help you succeed in trading.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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