Beat the Street: US earnings dominate with GE, GM, Coca-Cola leading the gains
Traders seem to be happy taking the long side across the main Wall Street indices ahead of the open today.
IGTV’s Jeremy Naylor explains that there is the longer-term risk to the downside but levels to watch suggest there may be some more gains before the next opportunity to sell.
Stock market updates and earnings reports insights
In this edition of "Beat the Street," Jeremy Naylor gives an update on the stock market and what to expect from upcoming earnings reports.
He covers big companies like General Motors (GM), Coca-Cola, and General Electric (GE). Let's break it down to make it easier to understand. First, GM has beaten expectations for the third quarter, but due to strikes by the UAW, they have withdrawn their profit guidance for the entire year.
On the other hand, Coca-Cola has surpassed forecasts and increased its outlook for the full year. As a result, their stock price has gone up. GE also did well, beating earnings and revenue estimates, and they have raised their outlook for the full year.
Jeremy thinks the market will see gains, but he warns against being overly optimistic for too long. He talks about technical indicators and potential risks that could bring the market down. However, he believes there could be some positive surprises if companies like IBM, Microsoft, Snap, and Alphabet release good earnings reports.
Dollar rebound: impact on stocks and value against euro and pound
Jeremy also looks at the performance of the dollar, specifically the dollar basket, which has rebounded after hitting a lower support line. He mentions that the dollar has gotten stronger against the euro and the British pound. He suggests that if interest rates go down, it could have a positive impact on stocks.
Moving on to specific stocks, Jeremy talks about GM withdrawing its profit guidance due to strike-related costs. Coca-Cola's third-quarter numbers are better than expected, and they have raised their forecast for the full year. GE has also raised its profit forecast for the third time this year because there is high demand for their jet engine parts. He also mentions that Microsoft and Alphabet will be releasing their earnings reports after the market closes.
Finally, Jeremy tells us about NVIDIA, a leader in computer chips for artificial intelligence. They are now designing central processing units for Microsoft's Windows operating system, which is a move to challenge Intel's dominance in the personal computer market. NVIDIA's stock is expected to do well today after a rise yesterday.
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