Earlier today FCX announced that in order to save its business, it would lay off 10% of its employees, and that it now expects $4 billion in capital expenditures for 2016, down from a prior estimate of $5.6 billion. Its 2015 capital expenditure budget currently stands at $6.3 billion. The resultant surge in the company, which exploded by 30% in the regular hours, made many wonder if there wasn't more to the story. The answer is: yes, there was, and moments ago none other than Carl Icahn announced an 88 million, or 8.46% stake in the copper miner, in a 13D which said that said the company was "undervalued" and that Icahn is now seeking a board seat.
It began in Dec 2008. To understand it, it is necessary to understand two principles. The first is that gold is money and the dollar is credit (which is currently worth 28.4mg gold). For the second, we emphasize it's not just price, but separate bid and ask prices.
Despite early exuberance at beating top and bottom lines (and users), it appears those looking for hyper-growth opportunities are selling into the machines. An initial 12% spike in the stock after hours has been completely destroyed into the red as investors realize growth rates continue to tumble, capex is rising, and organic growth is slow.
Moments ago, Facebook reported Q2 earnings and just like Twitter, it beat across all key financial metrics. So all should be well, and FB stock should be soaring. Alas for FB longs it isn't and at last check the stock was down by $5 or about 5% after hours, because algos were focused on one particular user growth metric: Daily active users (DAUs) - DAUs were 968 million on average for June 2015, an increase of 17% year-over-year. This number was a fraction less than the 970.5 million consensus estimate, and because it brought up nightmare visions of what happened to Twitter stock overnight, which since earnings has plunged to near all time lows, is forcing traders to sell or short, if only now, and ask questions later.
Update: *TWTR'S NOTO: THIS IS BOTH A PRODUCT ISSUE AND A MARKETING ISSUE, DOESNT SEE SUSTAINED GROWTH IN MAUS UNTIL REACH MASS MKT
Just like on previous quarters, TWTR decided to use a gimmick when counting users, to wit: "Average Monthly Active Users (MAUs) were 316 million for the second quarter, up 15% year-over-year, and compared to 308 million in the previous quarter. The vast majority of MAUs added in the quarter on a sequential basis came from SMS Fast Followers. Excluding SMS Fast Followers, MAUs were 304 million for the second quarter, up 12% year-over-year, and compared to 302 million in the previous quarter." It took algos a few minutes to digest this fact, and as a result what was initially a solid 10% spike after hours, fizzled almost entirely, and as of this moment the stock had cut its after hours gains notably.
After yesterday's latest drop in stocks driven by "old economy" companies such as CAT, which sent the Dow Jones back to red for the year and the S&P fractionally unchanged, today has been a glaring example of the "new" vs "old" economy contrast, with futures propped up thanks to strong tech company earnings after the close, chief among which Amazon, which gained $40 billion in after hours trading and has now surpassed Walmart as the largest US retailer. As a result Brent crude is little changed near 2-wk low after disappointing Chinese manufacturing data fueled demand concerns, adding to bearish sentiment in an oversupplied mkt. WTI up ~26c, trimming losses after yday falling to lowest since March 31 to close in bear mkt. Both Brent and WTI are set for 4th consecutive week of declines; this is the longest losing streak for Brent since Jan., for WTI since March.
We always keep a weather eye on the state of retail investing in the U.S. There is, of course, the old saw that this batch of buyers doesn’t get involved until the top; therefore, it makes sense to see if they are getting too “Bulled up”. Then there is the fact that retail “Cult” stocks can hold premium valuations far longer than those without such sponsorship.
The Oldest Trick In The Accounting Book Is Back: How Coke Just "Beat" EPS Despite Sliding Revenues And ProfitSubmitted by Tyler Durden on 07/22/2015 08:13 -0400
If KO had applied the proper tax rate of 28.7% to its non-GAAP pre tax income of $3.6 billion, the EPS number it would get is not $0.63, but $0.58. Why is this key? Because Wall Street's consensus estimate for KO EPS was $0.60, or right in the middle. And that, ladies and gentlemen, is how both Intel and now Coca Kola used the oldest trick in the accounting book to "beat" EPS: by using an unrealistically low tax rate.
Apple Plunges Despite EPS Beat On iPhone Sales Miss, Drop In China Sales, Weak Guidance And Strong Dollar WarningSubmitted by Tyler Durden on 07/21/2015 16:48 -0400
The company which was carrying the fate of not only the Dow Jones and the S&P 500 on its shoulders had taken the stairs up, and just took the elevator down.
Unleash the talking head spin...
The reason IBM stock is currently sliding and dragging down the broader Dow Jones future with it is that with Q2 revenues of $20.8 billion, the company not only missed expectations, but was a plunge of 13.4% from a year ago: a drop that surpasses the biggest revenue drop recorded during the peak of the financial crisis! This is also 13 consecutive quarter of declining Y/Y revenues.
For all those wondering just how INTC did it, here's the reason for Intel's beat in one simple chart.
Just when everyone thought it was fixed, crude inventories start building again as API reports (for the 2nd week):
*API SAID TO REPORT CRUDE SUPPLIES ROSE 1.8M BBL LAST WEEK
This follows a surprising 1.3 million barrel build last week reporrted by API. WTI slipped back to $61.00 after hours...