Stocks Mixed Monday; Tesla Beats Earnings Estimates

Last Updated: Wednesday, April 28, 2021 4:04 PM | Nick Dey

Stocks traded mostly higher Monday. A slew of better-than-expected earnings helped markets trend higher today, despite an underwhelming March Durable Orders report. Durable Orders missed the 2% consensus estimates, rising just 0.5% for the month. Excluding transportation, Durable Orders grew 1.6% and were in-line with estimates following February’s downturn in business spending.

Looking forward this week, earnings will dominate the news, with the most hyped stock, Tesla (TSLA), reporting this afternoon. Besides news from individual companies, investors will gain a better perspective of the recovery following Consumer Confidence reports Tuesday and PCE Prices on Friday.

Tesla, Et Al

Tesla reported earnings this afternoon in a highly anticipated report. Tesla announced record first-quarter vehicle deliveries early in April and was expected to earn $0.73 per share on revenues of $9.88 billion. After beating analyst estimates for deliveries, Tesla handily beat these estimates, reporting profits of $0.93 per share on revenues of $10.38 billion.

As more and more legacy automakers announce their intentions to join the EV market in the next couple of years, Tesla is in a crucial part of its history. Tesla’s continued growth is dependent on its ability to continue to scale production of vehicles, particularly the lower-priced Model 3 and Y, which dominated the company’s first-quarter deliveries. Because of this, investors are keen to hear about progress on the company’s forthcoming factories in Berlin and Texas. Tesla enthusiasts and short sellers alike will also be looking to CEO Elon Musk for the company’s full-year 2021 delivery goal, after just missing 2020’s ambitious goal of 500,000 EVs delivered.

Besides Tesla, there will be many more headline-worthy names reporting earnings. BP (BP) will give investors a look into progress in the recovery of oil markets Tuesday morning, as travel slowly resumes as vaccine rates continues to ramp up. More interesting than whether the company beats or misses expectations for profits of $0.07 per share may come from the company’s guidance, if offered. Another interesting look will be United Microelectronics Corporation (UMC) as investors will be interested in the company’s take on the semiconductor shortage, and potentially, how long they expect it to last.

In the tech corner, Alphabet (GOOG) and Microsoft (MSFT) will report earnings after the market closes on Tuesday, before Apple (AAPL) reports after market close on Wednesday and Amazon (AMZN) reports after close Thursday. Investors will be watching to see if these companies can continue their 2020 momentum, which saw them all face heightened demand as the economy relied on their goods and services more than ever. Snap (SNAP) had a double-digit rally last week after reporting user growth that extended its 2020 momentum, and these companies may face the same if they appeal to investors.

Economy

Besides earnings and corporate news, there will be some important economic indicators which could sway markets for the worse, regardless of how cheery CEO so-and-so is on their company’s earnings or how upbeat guidance is. Consumer Confidence for April will be released Tuesday and is expected to show a reading of 113.5. This would be the fifth straight month of increasing consumer confidence.

Come Wednesday, investors will be watching out for the April FOMC Rate Decision, which will likely show the central bank standing pat. Investors will be watching this to see if the Fed starts to take steps back from aiding the economy, something they have repeatedly said they won’t do until it is clear that the worst of the pandemic is behind us.

Lastly, investors will be watching out for the PCE Prices released Friday. Inflation worries have dissipated in the past few weeks, but an unfavorable reading could bring back fears of inflationary pressures. Economists are estimating a 0.3% increase in the cost of goods and services.

Economic Events this Week

Tuesday

  • 10:00 a.m. - Consumer Confidence

Wednesday

  • 10:30 a.m.- EIA Crude Oil Inventories
  • 2:00 p.m. - FOMC Rate Decision

Thursday

  • 8:30 a.m. - Initial Claims
  • 8:30 a.m. - Q1 GDP-Adv

Friday

  • 8:30 a.m. - PCE Prices
  • 8:30 a.m. - Personal Spending and Income

Earnings Reports this Week

Tuesday:

Before the bell: BP, CNC, UPS, GE, ADM, RTX, NVS, MMM, UBS, LLY, ABB After the bell: GOOG, MSFT, CB, COF, MDLZ, SBUX, AMGN, V, CHRW, TXN, SYK, PFG, EIX, AMX

Wednesday:

Before the bell: UMC, HUM, BA, GD, SNY, PAG, ADP, TEVA, SWK, GIB, DISCA, TECK, NSC After the bell: AAPL, F, FB, QCOM, MOH, AFL, AVT, MUSA, PPC, CYH, EBAY, ORLY, ATUS, RE

Thursday:

Before the bell: MRK, BMY, CAT, TMO, NOC, KHC, CBRE, BCE, IP, SO, MCD, MO, PCG, PBF After the bell: AMZN, GILD, NIO, INT, WDC, X, DVA, MHK, EMN, GNW, AJG, KLAC, VRTX

Friday:

Before the bell: XOM, CVX, PSX, ABBV, CHTR, LYB, IMO, AZN, JCI, LHX, CL, GT, ITW, AON, GWW, WY

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