Today is Thursday, October 28, 2021.
Ford Makes Dividend Comeback
Shares of the Ford Motor Company (NYSE: F) jumped 8.7% in after-hours trading on Wednesday after the car giant posted positive quarterly earnings results and brought back its dividend.
Numbers: Ford achieved an adjusted earnings per share of 51 cents, which was nearly double what analysts projected. Automotive revenue reached $33 billion, which was slightly better than expected.
Future: Ford also increased its full-year guidance to somewhere between $10.5 billion and $11.5 billion.
Dividends Are Back: For the first time since the pandemic started, Ford is finally bringing back its regular quarterly dividend. The company declared a Q4 dividend of 10 cents per share.
Headwinds: The big challenge for Ford is the semiconductor shortage, but the company noted that there was some improvement in this area from the previous quarter.
Final Thoughts: It was a great quarter for Ford, and the return of the dividend is good for investors.
Notable Earnings Today: Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Shopify (NYSE: SHOP), Mastercard (NYSE: MA), Caterpillar (NYSE: CAT), Merck (NYSE: MRK), Altria (NYSE: MO), Starbucks (Nasdaq: SBUX), Gilead (Nasdaq: GILD), Skechers (NYSE: SKX), Anheuser Busch Inbev (NYSE: BUD), Comcast (Nasdaq: CMCSA), SiriusXM (Nasdaq: SIRI), Western Digital (Nasdaq: WDC).
Notable IPOs Today: Solo Brands, Inc. (NYSE: DTC), Fluence Energy, Inc. (Nasdaq: FLNC), Candela Medical, Inc. (Nasdaq: CDLA), Perception Capital Corp. II Units (Nasdaq: PCCTU), Ensemble Health Partners, Inc. (Nasdaq: ENSB), LianBio (Nasdaq: LIAN), GlobalFoundries Inc. Ordinary Shares (Nasdaq: GFS).
Notable Equity Crowdfunding Campaigns Ending Today: Life Imaging (StartEngine), Talla (NetCapital), 7 Grain Army (MainVest).
Notable Economic Events Today: GDP (8:30 a.m. ET), Jobless claims (8:30 a.m. ET), Pending home sales (10:00 a.m. ET).
Stocks Struggling Due to the Supply Chain
Many companies have seen their stock prices plummet within the last few weeks due to supply chain challenges that impacted earnings. Here are some notable examples.
Beyond Bad: Bed Bath & Beyond (Nasdaq: BBBY)’s CEO said last month the company is experiencing “pervasive” supply chain issues. The share price is down 44% in the past six months.
Just Don’t Do It: For Nike (NYSE: NKE), the supply chain issues have been so bad, the company is reducing its future guidance. The stock price is down 5% in the past three months.
Not Working Out: Peloton (Nasdaq: PTON) is facing a lot of problems, but that includes its supply chain. Shares of Peloton are town 35% this year.
Oh, Snap: Social media companies are feeling the supply chain crunch, including Snap (NYSE: SNAP), which is down 33% in the past month.
Final Thoughts: These companies represent opportunities to buy the dip. However, if the supply chain problems persist, then it could be a while before these stocks recover.
Proposed ETF Wants to Short Bitcoin Futures
There’s a new application for cryptocurrency exchange-traded funded (ETF), but unlike other proposed ETFs that bet on crypto, this one bets against it.
Details: Direxion filed an application with the United States Securities and Exchange Commission on Tuesday for an ETF that has a short exposure to Bitcoin futures contracts. In other words, it is a bearish investment that the future price of Bitcoin will drop.
Background: The SEC recently approved the first Bitcoin futures ETF a few weeks ago. A Bitcoin futures ETF allows investors to get exposure to the cryptocurrency without having to own the actual coins.
Numbers: Since the introduction of Direxion’s ETF on Tuesday, the value of Bitcoin has fallen by about 6%.
Final Thoughts: It was only a matter of time before an ETF that shorted Bitcoin would be introduced. If approved, it is ideal for those investors who are bearish of cryptocurrency.
Trends to Watch
Thank You for Smoking: Cigarette sales went up last year for the first time in 20 years (NPR)
Not an Ideal Debut: Rent the Runway’s strong debut fizzles, as shares close the day down 8% (CNBC)
I’m Lovin’ It: IBM, McDonald's to serve up automated drive-thru lanes with strategic partnership (Fox Business)
Bank on It: US Regulators Weigh Avenues for Banks to Hold Crypto (Coin Desk)
Call a Doctor: Teladoc Stock Is Down Again After Earnings. This Time Results Beat Expectations. (Barron’s)
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