STOCK MARKET UPDATES: Disney layoffs, Bed, Bath & Beyond shutters, tech earnings ahead
Investors are setting up for a busy week of earnings from blue chips Coke and McDonald’s, as well as Amazon, Microsoft, Google and Facebook parent Meta. Elsewhere, Disney begins another round of layoffs and Bed Bath & Beyond prepares for its final days after filing for bankruptcy. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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U.S. stocks ended the Monday session mixed as investors await the start of big tech earnings with Google and Microsoft set for Tuesday after the bell and Amazon and Meta later in the week, while Tesla shares fell on concerns about its spending plans.
Elon Musk's electric vehicle maker raised its 2023 capital expenditure forecast to ramp up output, shaving 1.5% off the stock.
It was one of the biggest drags on the benchmark S&P 500, along with Microsoft Corp, which was under pressure ahead of its results due out on Tuesday, Google is also set to report.
Of the 90 S&P 500 companies that have reported first-quarter results so far, nearly 77% have topped analysts' estimates compared with the long-term average beat rate of 66%, as per Refinitiv IBES data.
Driven by first-quarter sales for products like Louis Vuitton handbags and Christian Dior gowns, LVMH became the first European company to top $500 billion in market value.
Shares rose to a record high on Monday after the company reported strong first-quarter sales on April 12.
Two weeks ago, LVMH became one of the world's 10 biggest companies, growing the net worth of company CEO Bernard Arnault to roughly $212 billion, according to the Bloomberg Billionaires Index.
Since 1987, Arnault has developed the Paris-based LVMH brand through dozens of acquisitions and is now the world’s richest person, moving ahead of Elon Musk and Jeff Bezos.
Boeing Co is expected to reveal whether the latest 737 MAX manufacturing problem will derail the U.S. plane maker’s annual goals for passenger jet deliveries and free cash flow when it unveils its first quarter financial results on Wednesday.
Investors are clamoring for details on the extent of the problem, which Boeing said involves a “significant” portion of the 737 fleet where two brackets were improperly installed.
Analysts said the manufacturing problem isn't a showstopper for the MAX, as it’s not a safety issue and in-service jets have continued to fly. But Wall Street has received little information from Boeing on its plan to fix the problem and the overall financial impact.
Tesla Inc raised its capital expenditure forecast for 2023 on Monday as the automaker ramps up output at its factories to take advantage of the rising interest in electric vehicles.
The company, led by Elon Musk, said in a filing that it expects to spend between $7 billion and $9 billion this year, higher than its previous outlook of $6 billion to $8 billion.
It maintained the spending outlook for the next two years at $7 billion to $9 billion. Tesla's shares fell 3.3% in morning trade.
The world's most valuable automaker has been raising its production aggressively as it prioritizes sales growth ahead of profit in a weak economy and works towards CEO Musk's bold goal of selling 20 million electric vehicles in 2030 twice the output of any automaker in history.
Credit Suisse says it saw nearly $69 billion in outflows in the first three months of the year and that clients are still withdrawing assets.
The Swiss bank on Monday cited “significant net asset outflows” as it posted its results skewed by a government-backed takeover by rival UBS announced last month.
The deal is expected to close in the coming months and is designed in part to help stabilize the global financial system after the collapse of two U.S. banks.
Credit Suisse has posted pretax profit in the first quarter, stemming almost entirely from wiping out billions in higher-risk bonds. Otherwise, it had a pretax loss.
Coca-Cola reported higher-than-expected sales in the first quarter as it continued to hike prices and saw its business in China improve. Coke said its revenue rose 5% to $11 billion for the January-March period.
That beat Wall Street’s expectations. Coke said pricing and mix - which includes changes in package sizes - contributed 11% to its revenue growth while concentrate sales rose 1%.
The company said it's offering more promotions for buyers at the lower end but also expanding premium offerings, like cocktail mixers. Coke said sales in China have begun to rebound, but remain lower than pre-pandemic levels.
Bed Bath & Beyond shares, which were already pennies, fell even further after the retailer officially filed for bankruptcy.
Disney has begun its second round of layoffs, expected to hit thousands of employees, with a third expected in the coming weeks.
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