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Today is Wednesday, July 19, 2023.
The Early Bird Index today is 58.77.
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Carvana's Surprise Earnings
Online used car retailer Carvana (NYSE: CVNA) announced a change to its earnings on Tuesday, causing the stock price to drop by 10.18% in after-hours trading.
Details: Carvana moved its earnings up to Wednesday morning, with a conference call and webcast at 8:00 a.m. ET. The company was originally scheduled to report earnings on August 3.
Powering the Story: The sudden decision to move its earnings date up shocked investors. Carvana gave no indication on Tuesday about why it is moving up its earnings to Wednesday morning.
Stock Price: Carvana is down 87% in the past two years, but the stock has been surging since May and is now up 759% in 2023 thanks to a slightly improved forecast.
Final Thoughts: Some view Carvana as just a meme stock. Hopefully, we get some more clarity about Carvana’s plans to turn the company around and improve its finances.
Notables
Notable Earnings Today: Netflix (Nasdaq: NFLX), Tesla (Nasdaq: TSLA), Carvana (NYSE: CVNA), Goldman Sachs (NYSE: GS), ASML (Nasdaq: ASML), Halliburton (NYSE: HAL), United Airlines (Nasdaq: UAL), U.S. Bancorp (NYSE: USB), International Business Machines (NYSE: IBM), Nasdaq (Nasdaq: NDAQ), Zions Bancorp (Nasdaq: ZION), Ally Financial (NYSE: ALLY), Las Vegas Sands (NYSE: LVS), Baker Hughes (Nasdaq: BKR), Alcoa (NYSE: AA), M&T Bank (NYSE: MTB), Steel Dynamics (Nasdaq: STLD), Elevance Health (NYSE: ELV), Discover Financial Services (NYSE: DFS), Citizens Financial Group (NYSE: CFG), Kinder Morgan (NYSE: KMI), Cohen & Steers (NYSE: CNS), Crown Castle (NYSE: CCI), Equifax (NYSE: EFX), First Horizon (NYSE: FHN), Rexford Industrial Realty (NYSE: REXR), SL Green Realty (NYSE: SLG).
Notable IPOs Today: Oddity Tech Ltd (Nasdaq: ODD), Series Portfolios Trust (NYSE Arca: CLOX), Touchstone ETF Trust (NYSE Arca: TSEC).
Notable Equity Crowdfunding Campaigns Ending Today: Orbital Assembly (Silicon Prairie), Colive (SMBX), Azure Printed Homes (Republic).
Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
J.B. Hunt's Weak Freight Demand
Photo by Sander Yigin / Unsplash
Despite posting bad financial results, shares of J.B. Hunt Transport Services (Nasdaq: JBHT) jumped by 2.57% in after-hours trading on Tuesday.
Financials: J.B. Hunt reported earnings of $1.81 per share in the past quarter and revenue of $3.13 billion; both were lower than expected.
Details: Revenue dropped by 18% and overall operating income declined by 23%. The category of Integrated Capacity Solutions saw revenue decline by 43%. J.B. Hunt blamed “weaker overall freight activity.”
But: The operating income for Final Mile Services grew by 12% and the operating income for Dedicated Contract Services increased by 21%.
Stock Price: J.B. Hunt is up 9% this year, including an 8% increase in the last 30 days.
Final Thoughts: These results show that we could be in a freight recession, which is bad for transportation stocks.
Interactive Brokers' Disappointing Results
Interactive Brokers (Nasdaq: IBKR) dropped by 5.99% in after-hours trading after the company posted financial earnings results that fell short of expectations.
Final Thoughts: Daily average revenue trades for the company fell 14% in the quarter and commission revenue remains unchained. The stock is up 20% this year.
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Trends to Watch
Don’t Bank on It: Western Alliance stock falls more than 5%; bank seeks to ‘return to normal’ after banking crisis (MarketWatch)
Dropping: Aurora Innovation plans $600 mln private placement, shares fall (Reuters)
Still Surging: XRP’s 60% Weekly Gain Defies Broader Crypto Slump as Bitcoin Stalls Below $30K (CoinDesk)
Bullish: Crypto survey finds 47% of investors expect Ether to ‘surpass’ Bitcoin (Cointelegraph)
A Little Help: White House Asks Walgreens, CVS, Walmart for Help Promoting Drug-Cost Law (Bloomberg)
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