Traders work on the floor of the New York Stock Exchange during morning trading in New York City.
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My top 10 things to watch Tuesday, Oct. 22
1. Wall Street was under pressure Tuesday after a down day to start the week that hit the Dow the hardest and broke a three-session winning streak for the 30-stock average. The reason for the further declines continued to be the rise in the 10-year Treasury yield. In speeches Monday, Fed officials urged a patient approach to future interest rate cuts.
2. Nvidia CEO Jensen Huang will take part in a fireside chat Thursday at the Nvidia AI Summit India in Mumbai. It’s a huge, sold-out festival. The company says Jensen will focus on AI’s impact on various industries and India’s standing as an emerging leader in the technology. We’ve long owned Nvidia for the Club. Big Tech earnings next week will be key events for Nvidia shareholders since those companies buy lots of its leading AI chips.
3. Club name Danaher handily beat on quarterly earnings per share of $1.71 and revenue of $5.8 billion. Bioprocessing saw strong demand. That was something we figured after German life sciences peer Sartorius reported solid earnings last week.
4. GE Aerospace delivered a true blowout quarter and guide up. The results were about as strong as it gets, with almost insatiable demand and great margins. Even China was good. Customers: Airbus was really good, and Boeing will be once it settles.
5. General Motors also reported a blowout, beating on the top and bottom lines. The Detroit automaker is simply much more profitable than we thought. Earnings per share of $2.96 in the quarter far outpaced the $2.43 estimate, and GM also upped its full-year adjusted EPS and automotive free cash flow guidance. Shares are hovering near their 2024 highs.
6. SAP jumped on a better-than-expected earnings report and raised full-year guidance. The German enterprise software company’s cloud offerings were a bright spot, with executives saying AI use cases were a “significant part” of cloud deals in the quarter.
7. Morgan Stanley sees a below consensus guide coming from Apple for its December quarter. The analysts think the Club name delivers a beat for its September quarter, which comes at the end of the month. I believe any underperformance on Apple’s part will be short-lived.
8. 3M raised the low-end of full-year earnings forecast after beating on quarterly profit. The turn under new CEO Bill Brown continued. I call these fantastic numbers.
9. Verizon shares were lower after mixed quarterly results. Revenue of $33.3 billion came in just shy of estimates, while EPS of $1.19 topped estimates by a penny. Customer additions also were above projections. The telecom giant reaffirmed its full-year EPS guide.
10. Deckers Outdoor was downgraded by BTIG, with analysts pointing to signs of moderating growth for brands including Ugg boots and Hoka, the running shoe maker. Hoka has been the star of the Decker show, so this call is a very big deal. Analysts worry that Decker’s premium valuation multiple could be at risk if these trends persist.
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