FOMC Numbers Review & Earnings Reports From Today | Read The Full Breakdown Below ⬇️
FOMC Is On The Rise Stocks See A Slide 🛝
The Market was looking tepid throughout todays session as investors are eagerly awaiting the FOMC event due tomorrow with Jerome Powell speaking after. This should give people the idea of when rate cuts should be delivered and with economic data coming out this morning it seems the Fed has increased their hawkish stance. Let’s take a look at our big index’s performance throughout the day:
The S&P500 and Nasdaq Composite both dove to end their trading session losing 1.6% & 2%
The Dow Jones Industrial Average shed about 1.5%
The 10-year for the second day in a row closed around 4.69%
Investors sat by and awaited earnings report where the company posted:
Earnings Per Share = $.98 vs $.83 expected
Revenue = $143.3B vs $142.5B expected
was another big player that investors were banking on for earnings that ended up beating The Streets expectations:
Earnings Per Share = $.62 vs $.61 expected
Revenue = $5.47B vs $5.46B
Even with these numbers and the data center experiencing 80% Growth the stock still is down in extended trading hours.
missed Q1 sales estimates for Mounjaro but saw 26% sales growth YoY, driven by GLP-1 products like Zepbound. The company raised its full-year guidance to $43 billion, boosting its stock by over 6%. Lilly is expanding Zepbound access, reaching 67% of possible customers, despite resistance from employers and insurers. Analysts see strong potential for Lilly and competitor Novo Nordisk in this growing market.
Starbucks (SBUX) reported disappointing Q2 earnings, missing expectations across various metrics, including revenue, earnings, and same-store sales growth. The company’s CEO, Laxman Narasimhan, acknowledged the challenging environment and its impact on the brand’s performance.
In the past year, Starbucks has faced declining foot traffic in the US due to inflation and intensifying competition in China. Here’s a detailed comparison of Starbucks’ reported results to Wall Street estimates:
Adjusted earnings per share: $0.68 vs. $0.80 expected
Revenue: $8.56 billion vs. $9.13 billion expected
Same-store sales growth: -4% vs. 1.46% expected
North America: -3% vs. 2.05% expected
US: -3% vs. 2.31% expected
International: -6% vs. 1.36% expected
China: -11% vs. -1.62% expected
Foot traffic growth: -6% vs. -0.27% expected
North America: -7%, compared to up 6% in Q2 2023
International: -3% compared to up 7% in Q2 2023
Ticket size growth: +2% vs. 2.41% expected
North America: 4%, compared to up 5% in Q2 2023
International: -3%, compared to up flat in Q2 2023
Following the earnings release, Starbucks shares dropped more than 10% in after-hours trading. The disappointing results highlight the challenges Starbucks faces in maintaining growth and navigating a difficult market environment.
Pinterest forecasts Q2 revenue above estimates, driven by increased ad spend on its platform, particularly from Gen Z users and marketers leveraging AI-driven ad tools and new formats. The company expects revenue between $835 million and $850 million, surpassing the average estimate of $826.5 million. In Q1, Pinterest reported a 12% increase in global monthly active users (MAUs) to 518 million, exceeding estimates of 503.2 million. Revenue for Q1 rose 23% to $740 million, beating expectations of $699.9 million.
The majority of Pinterest’s Q1 ad spend in the U.S. came from the shopping category (50%), followed by 20% from consumer packaged goods, and 6.4% from health and wellness. The top five U.S. advertisers on Pinterest were Amazon.com, Target, Temu, Walmart, and L’Oreal, accounting for 29% of total ad spend. These positive results indicate that Pinterest is effectively capitalizing on the growing U.S. ad market, which is expected to expand by over 9% this year, reaching $369 billion, according to MAGNA Global.
