American Express, IBM, Intel, Johnson & Johnson and More Dow Stocks Reporting This Week

Seven of the 30 Dow Jones industrial average components are scheduled to report their latest quarterly reports this week. The Dow keeps hitting all-time highs, and earnings season has only just started, so it’s yet to be seen if the Dow can keep hitting those highs. In the past week, the Dow passed the 29,000 mark, and at this rate 30,000 could be just around the corner.

24/7 Wall St. has put together a preview of those Dow companies scheduled to report their quarterly results this week. We have included the consensus earnings estimates, as well as the stock price and trading history.

For more of what’s expected from this week’s quarterly results, check out our separate preview of other major companies, like Netflix and Starbucks, that are reporting this week as well.

Also note that this week is truncated, with markets closed on Monday for Martin Luther King Day.

International Business Machines Corp. (NYSE: IBM) is set to report its most recent quarterly results after Tuesday’s close. Analysts are looking for $4.69 in earnings per share (EPS) and $21.63 billion in revenue. Shares rose above $138 on Friday, with a consensus price target of $147.68 and a 52-week trading range of $121.54 to $152.95.

Johnson & Johnson’s (NYSE: JNJ) fourth-quarter report is due on Wednesday morning. The consensus estimates call for $1.87 in EPS and $20.78 billion in revenue. Shares traded rose above $149 on Friday. The 52-week range trading range now is $125.00 to $149.41, and the consensus price target is $156.63.

Dow Inc. (NYSE: DOW) will share its latest quarterly earnings early on Thursday. The consensus estimates call for $0.74 in EPS and $10.15 billion in revenue. Shares closed above $53 on Friday, in a 52-week range of $40.44 to $60.52. The consensus analyst target is

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American Airlines, Netflix, Starbucks and More Major Earnings This Week

The fourth-quarter earnings reporting season is ramping up, with many major companies sharing their results in the coming days. This will be a big earnings season as the S&P 500, Nasdaq, and Dow Jones industrial average are near all-time highs. The question is whether earnings can push the markets higher from here.

24/7 Wall St. has put together a preview of the most prominent earnings reports in this truncated trading week. Note the markets are closed Monday in observance of Martin Luther King Day. We have included the consensus earnings estimates, as well as the stock price and trading history. Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

Also look out for the seven major Dow Jones industrials reporting this week.

Haliburton Co.’s (NYSE: HAL) fourth-quarter report is due early on Tuesday. The consensus estimates call for $0.29 in earnings per share (EPS) and $5.11 billion in revenue. Shares ended the week just below $24. The consensus price target is $27.30, and the 52-week range trading range is $16.97 to $32.71.

Fourth-quarter results for Netflix Inc. (NASDAQ: NFLX) are expected late on Tuesday. The consensus estimates are earnings of $0.52 per share on revenue of $5.45 billion. Shares traded near $340 in recent days, while the consensus price target is $363.18. The 52-week range trading range is $252.28 to $385.99.

United Airlines Holdings Inc. (NASDAQ: UAL) also is scheduled to report its fourth-quarter earnings Tuesday afternoon. The consensus estimates call for $2.65 in EPS and revenue of $10.88 billion. Shares were changing hands below $90 on last look. The $110.94 mean price target is well above the 52-week trading range of $77.02 to $96.03.

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) is scheduled to report

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Market Continues “Euphoric” Advance As 3500 Becomes Next Target

However, during that same 5-year period, Apple’s share price has risen by 210%.

APPL Earnings Chart

APPL Daily Chart

So why do we still own Apple? Because “fundamentals don’t matter” currently as the momentum chase, fueled by the Fed’s ongoing liquidity interventions, has led to a “runaway train.” But, understanding that eventually fundamentals will matter, is why we have taken profits out of our position twice since January 2019.

The only reason Apple “appears” to be cheap is because of the massive infusion of capital used to reduce the number of shares outstanding. As a business, it is a great company, but it is a fully mature company, which is struggling to grow revenues. With a P/E of 27 and price-to-sales (P/S) ratio of 5.36, investors are grossly overpaying for the earnings growth and will likely be disappointed with future return prospects.

Just remember, “price is what you pay, value is what you get.”

Next Stop, 3500

As noted last week, in July of 2019, we laid out our prognostication the S&P 500 could reach 3300 amid a market melt-up though the end of the year. On Friday, the S&P 500 closed at 3329, with the pushing toward 29,350.

With the Federal Reserve continuing to pump liquidity into the market currently, we are raising our 2020 estimate for the S&P to 3500 as “the mania” goes mainstream. There is absolutely NO FUNDAMENTAL basis for raising the target; it is ONLY a function of the momentum chase.

This urgency to take on “risk,” as investors pile into “passive indexes” under a “no market risk” assumption, can be seen in the extreme lows of the put/call ratio.

Put Call Chart

With the Federal Reserve’s ongoing “Not QE,”

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The S&P 500 Can Climb Higher, Potentially Reaching 3,540 In 2020

With earnings season quickly approaching, it is perhaps a good time to look at the from a valuation perspective over the longer-term. Recently we have been focusing on the market’s steady advance and ever-mounting sign that the market is getting a bit overheated at current levels. However, over the longer-term, the outlook continues to suggest that the market can rise to even higher levels.

First off earnings growth is expected to see a significant bump in 2020, rising by around 11% to about to $175.30 per share based on estimates from S&P Jones. Then in 2021, it is forecast to grow by roughly 9% more to $191.22 per share.

EPS Estimate Change

Present Values

It leaves the index trading at roughly 19 times 2020 earnings and around 17.5 times 2021 earnings estimates. Which mostly leaves the index trading at fairly valued levels based on the historical average.(S&P Dow Jones)

Operating PE Ratio Of S&P 500

Low Rates

But again, one could easily argue that in a world where the dividend yield of the is basically on par with that of the Treasury, investors would likely be in a mood to take on some additional risk to generate higher returns.

US 10 Yr Treasury Yield – SPDR SP 500 Dividend Yield

The Range

I think it is fair to say in this low-interest-rate environment; the S&P 500 could see its earnings multiple move up to something closer to that of 18 or even 18.5 times one-year forward earnings. At 18 times 2021 earnings estimates, one could get a valuation of 3,441, and at 18.5, it comes to roughly 3,537. It could amount to a gain of as much as 6% from its current levels of 3,329.

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Midcap and Small caps to lead upsurge

Markets began the last week with big gains on Monday and then traded in a narrow range, gaining on four of the five trading sessions.

The BSESENSEX gained 345.65 points or 0.83 per cent to close at 41,945.37 points while NIFTY gained 95.55 points or 0.78 per cent to close at 12,352.35 points. The broader market saw BSE100, BSE200 and BSE500 gain 0.98 per cent, 1.22 per cent and 1.44 per cent respectively. The breadth of the market rose very sharply with BSEMIDCAP gaining 3.63 per cent and BSESMALLCAP gaining 3.97 per cent. This kind of gain in Midcap and Smallcap indices has happened after a very long time.

The Indian Rupee was volatile and lost 14 paisa or 0.20 per cent to close at Rs 71.08 to the dollar. Dow Jones hit yet another lifetime high and gained 524.33 points or 1.82 per cent to close at 29,348.10 points.

Result season is off to a good start with first Infosys declaring a decent set of numbers and now Reliance Industries and HDFC Bank. While the bank has reported a growth of 12.7 per cent in net interest income, it reported a jump of 15.6 per cent in profit before tax and 32.8 per cent in net profit at Rs 7,416 crore. The only point of concern was Gross NPA’s which rose by 4 basis points to 1.42 per cent and 23.2 per cent to Rs 13,427 crore as an absolute number.

Market is expecting changes in DDT or Dividend Distribution Tax with the same likely to be shifted to the recipient instead of the giver. Further there are expectations that there would be changes in individual taxes with the rates and slabs changing. Also, some of the deductions available to individuals may be removed or substantially altered.

The gold

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Visa says reaches 100pc renewable electricity goal

Visa today announced the company has met its goal to use 100 percent renewable electricity by 2020, furthering the company’s commitment to lead responsibly and sustainably across the company’s global operations, including 131 offices in 76 countries and four global processing centres. 

Since setting the 100 percent renewable goal in 2018, Visa achieved quick action across its global facilities portfolio by advancing to a sustainable mix of renewable energy sources such as solar and wind. 

“At Visa, we see both a responsibility and an opportunity to make broad shifts toward a sustainable and inclusive future,” said Al Kelly, chief executive officer of Visa. “I’m proud of the investments we’ve made in our infrastructure to reach this important renewable energy milestone. We will continue to prioritize advancing the role of our business and industry in transitioning to a cleaner global economy.” 

Working with local utilities and competitive electricity market providers, Visa leveraged renewable electricity options available in each market that best fit the country’s approach to renewable electricity. Visa made local renewable electricity investments in markets where the company has major facilities, including four locations in the US and the UK that account for 80 percent of its global electricity use. Specific actions by Visa included enrollments in renewable electricity programs offered by Total Energy in the UK, Xcel Energy in Colorado, Austin Energy in Texas and Peninsula Clean Energy in the San Francisco Bay Area. 

With a commitment to support the broader renewable electricity transition, Visa also joined and followed the guidelines of RE100, a global collaborative of influential businesses committed to 100 percent renewable power led by The Climate Group in partnership with CDP; became a member of the Renewable Energy Buyers Alliance (REBA); and signed the Renewable Energy Buyers’ Principles.

By purchasing 100 percent renewable electricity, Visa mitigates

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U.S. shares rise

U.S. shares rise

Jan 19, 2020 (MENAFN via COMTEX) —


U.S. shares increase in the week after the U.S. and China have singed phase one of their trade deal, the publishing of corporate earnings and economic data.

The Dow added 1.82 percent, the S&P 500 increased 1.97 percent and the Nadaq rose 2.29 percent in the week ending on the 17th of January.

Market data published by the Dow Jones showed that all of the three benchmark indexes have increase the most since the 30th of August in the earlier year in the week.

China and the United States have signed their phase one of economic and trade deal in Washington on Wednesday which resulted in the stock market increasing, the Dow has ended over 29,000 for the first time on Wednesday.


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Extreme valuation cases wanted for a red-hot rally in equities

By Sarah Ponczek

Stack up US equities next to almost anything that is used to measure value right now, and the picture can elicit anxiety. Up 13 of the past 15 weeks, the S&P 500 is trading at historically high levels versus earnings, expected profits and sales.

Does that mean there’s no way to justify putting more money into a market where the Dow Jones Industrial Average has surged almost 4,000 points since August? No. Or at least, not theoretically.

Persistently low interest rates remain an inducement for many analysts and investors. While prices are stretched by historical standards, they say, it’s a mistake to use valuation as a signal for jumping in and out of the market.

“The potential is very high that we run with higher P/Es for longer than people think,” said Jim Tierney, AllianceBernstein’s chief investment officer of US concentrated growth. “Those that are going into this year saying, ‘Well we’re at 18.5 times earnings, P/Es have to come down,’ I think they’re going to be wrong in that assessment.”

In May, Warren Buffett said shares looked “ridiculously cheap” when viewed alongside very low borrowing costs and inflation, interpreted by many as a warning that interest rates would rise. What the Berkshire Hathaway chief executive ended up getting right was stocks, which rallied. Nine months and 15 per cent later on the S&P 500, do the same conditions make it safe to jump into equities now?

Investors can be forgiven for approaching the question nervously. More pundits are equating the latest leg of the bull run to the one that occurred in the late 1990s, which ended with the eruption of the dot-com bubble. At the same time, the hazards of market timing are well known. Cash out now, or go all in? Always the big question.

According to AllianceBernstein’s Tierney, whose fund

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Average folks optimistic on economy as stock market goes gangbusters

In trying to read the tea leaves of American sentiment, a pair of recent surveys have uncovered — wait for it — optimism.

The stock market is going gangbusters in 2020, and for those invested, the record highs attained by the Dow, S&P 500 and Nasdaq have brought welcome gains.

In the Allianz Quarterly Market Perceptions Study released last week, concerns about a recession or an impending crash were at their lowest levels since 2018.

Allianz Life, which conducts the online survey, found in the fourth quarter of 2019 that 43% of Americans were worried a recession was right around the corner (down from 50% in the third quarter and 44% in 2018).

And 39% said they were worried a market crash was on the horizon (down from 48% in Q3, and 42% in 2018).

Despite the relative calm, said Kelly LaVigne, Allianz Life VP of consumer insights, “The number of people who say now is a good time to invest in the market continues to decrease.”

Some may think the market is too high, or they just don’t want to jump in and put their savings and retirement at risk if things go south, LaVigne said.

About 43% of Americans think their financial situation will get better in 2020, according to last week’s Financial Outlook Survey from Bankrate, which found “optimism is running high.”

“A lot of it is rooted in the fact that unemployment is at a 50-year low, people are working and making more money and consumer spending has been solid,” said Greg McBride, Bankrate’s chief financial analyst.

About 41% of the lowest-income households in the survey (less than $30,000) expected their finances to improve, Bankrate said, ranging up to 49% for highest-income households (more than $80,000).

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4 Central Bank Meetings Featured In The Upcoming Week

The U.S. dominated the news stream at the start of 2020. The spasm in the U.S.-Iran confrontation has quickly subsided. The much-heralded U.S.-China Phase 1 trade deal has been signed. The U.S. has completed the ratification process of the U.S. Mexico Canada Free-Trade Agreement. The early signs from the economic entrails suggest the world’s largest economy continues to enjoy a record-long, even if not robust, expansion.

The focus shifts elsewhere in the week ahead, for which the U.S. sees a relatively light calendar of economic reports in a holiday-shortened week. Then again, the recent , , , and data offer valuable insight. The course is set, and the Fed seems inclined to look beyond the near-term economic fluctuations, ensuring that the meeting at the end of the month is as close to a non-event as an FOMC meeting and a Powell press conference can be.

There are four central bank meetings to note, and none are likely to do anything, so the words are more important than the actions. The begins with Governor Kuroda holding at the conclusion of the two-day meeting on January 21. Under the yield-curve control initiative, it puts the deposit minus 10 bp and targets the yield at zero =/+ 20 bp. Global tensions have eased, and the has weakened to the lower end of where it has been in the past six months. Prime Minister Abe’s fiscal support (~$122 bln) and preparation for the Olympics may also help the BOJ’s efforts to support the economy.

The BOJ will provide updated forecasts. In October, it anticipated growth of 0.7% in FY20 and 1.0% in FY21. Core inflation, which excludes the price of fresh food, was forecast to rise by 1.1% in FY20 and 1.5% in FY21. The forecast seems optimistic. The Bloomberg economists survey found median

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