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Morning News: February 28, 2020
Posted by Eddy Elfenbein on February 28th, 2020 at 7:05 amWorld Stock Rout Deepens and Treasuries Jump Again
Virus Disrupts China’s Shipping, and World Ports Feel the Impact
Rich Profits and Dark Messages From the Market (No, Not That Market)
London Stock Exchange on Track to Close Refinitiv Deal as Clearing Jumps
Why Havens Might Not Be Safe When Everybody Rushes In
Trump Administration Faces Economic Test as Coronavirus Shakes Markets
Why Your Index Fund Is Built To Survive The Coronavirus Outbreak
Main Street Leans Toward Sanders, But Wall Street Says Trump
Two Years On, Elon Musk’s Big Battery Bet Is Paying Off in Australia
Google Is Keeping a Coal Plant Alive in a Quiet Tax-Break Power Play
The Dairy Farm of Your Imagination Is Disappearing
SEC Karate-Chops Steven Seagal Over Promoting Cryptocurrency Touted as the Next Gen Bitcoin
Ben Carlson: 12 Things That Won’t Help You During a Market Correction
Michael Batnick: Who Sells When the Market Falls? & How Does the Stock Market Bottom?
Jeff Carter: Envy, Jealousy and the Relentless Attack on Wealth and Capital
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Some Notes on Today’s Market
Posted by Eddy Elfenbein on February 27th, 2020 at 10:38 pmA few notes to pass along. The 10-year Treasury dipped below 1.25% today. That’s an all-time low.
The S&P 500 is down 10.76% this week (just four trading days.) Our Buy List is down by 9.15%. That’s a big outperformance gap for such a short time period.
This looks to be the fastest the market has ever gone from an all-time high to being down more than 10%. Historically, most big crashes have come after slowly crumbling markets, not from peaks.
For the first time in nine months, the S&P 500 closed below its 200-DMA.
Only nine stocks in the S&P 500 are above their 20-DMA. Four stocks in the index made new highs today while 107 made new lows. In the S&P 500, 268 stocks are more than 17% off their 52-week high.
Since January 3, the S&P 500 High Beta index is down -14.77% while the Low Vol index is down just 3.84%.
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The Market Bounces Off the Low
Posted by Eddy Elfenbein on February 27th, 2020 at 1:38 pmIt’s another dramatic day for Wall Street. The markets opened much lower but have since rallied off their low. We’re not done yet.
Shares of Ansys (ANSS) dropped down as much at -13% this morning after yesterday’s earnings report. The Q4 results were pretty good but guidance was terrible. Fortunately, ANSS has made back a lot of lost ground.
I’m glad to see shares of Trex (TREX) up nicely today. The stock dropped 5% yesterday.
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Morning News: February 27, 2020
Posted by Eddy Elfenbein on February 27th, 2020 at 7:15 amVirus-Hit Stocks Shed $3 Trillion; Safe Havens Thrive
Boris Johnson Gives EU Four Months to Make a Brexit Deal — Or He Walks
Too White, Too Male: Fed Takes on Diversity One Bank Board Member at a Time
1,000 Workers, Go Home: Companies Act to Ward Off Coronavirus
Printing’s Not Dead: The $35 Billion Fight Over Ink Cartridges
Ripple Claims a Big Win in the Elusive Quest to Use Cryptocurrency in Banking
TikTok Marketers Chase Billions of Views in Uncharted Terrain
Up to 91% More Expensive: How Delivery Apps Eat Up Your Budget
Aston Martin Shares Slide As Losses Deepen and Finance Chief Leaves
Nick Maggiulli: What Happens Next?
Ben Carlson: Fear and Influenza: How Viruses Spread & Animal Spirits: Michael’s Worst Investment Ever
Michael Batnick: Surveying the Stock Market Damage
Cullen Roche: A Crisis is the Worst Time to Learn Your Risk Tolerance
Roger Nusbaum: Markets Panic Every So Often, It’s What They Do
Joshua Brown: The Two-Day, Two Trillion-Dollar Wipeout
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A Few Notes on Today’s Market
Posted by Eddy Elfenbein on February 26th, 2020 at 5:06 pmToday was an unusual day for the market. At one point, the Dow was up 461 points. At its low, the Dow was down 190 points. It closed down 123 points.
Middleby (MIDD) closed up 7.95%. At one point, it was up more than 20%.
Ansys (ANSS) crushed earnings but had lousy guidance. The stock gained 1.4% today but is down 3.8% in the after-hours session.
Disney (DIS) lost 3.77% which is nearly $9 billion in market cap. That suggests that Robert Iger is worth a lot to the business.
Trex (TREX) fell 5% today even though it was up yesterday. Some analysts pared back their Q1 forecasts.
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Ansys Beats Earnings
Posted by Eddy Elfenbein on February 26th, 2020 at 4:21 pmAfter the closing bell, Ansys (ANSS) reported Q4 earnings of $2.24 per share. Wall Street had been expecting $1.98 per share. For the year, Ansys made $6.58 per share.
Ajei Gopal, Ansys President & CEO, said, “Q4 was an outstanding quarter concluding a stellar 2019. We grew double digits across revenue and ACV for the quarter and the year, and I am confident we are tracking towards our 2022 objective of $2 billion in ACV.”
For Q1, Ansys sees revenues ranging between $300 million and $320 million and earnings between 75 and 88 cents per share.
That’s well below consensus. Wall Street had been expecting $360 million and earnings of $1.36 per share.
For the year, Ansys sees revenues between $1.64 billion and $1.70 billion, and EPS between $6.19 and $6.71.
For the year, Wall Street had been expecting $1.68 billion and earnings of $6.76 per share.
The stock was up 1.4% today. The stock is currently down about 6% in the after-hours market.
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Middleby Earns $2 per Share
Posted by Eddy Elfenbein on February 26th, 2020 at 11:46 amThe stock market is looking much better this morning after the unpleasantness of the last two days. President Trump will be speaking at 6 p.m. ET on the virus outbreak.
We got a very good earnings report this morning from Middleby (MIDD). At one point this morning, the shares gapped up over 20%.
For Q4, the company made $2.00 per share. That crushed estimates of $1.71 per share. Quarterly sales rose 4.1% to $787.6 million. For the year, Middleby made $7.02 per share. This was a great quarter for them.
CEO Timothy FitzGerald said, “Over the past year we made significant investments in new product innovations addressing these categories and are pleased to see growing interest as we enter 2020. We are well-positioned with a much improved backlog as we closed out 2019 and are confident it will translate into sales and profitability growth for the upcoming year.”
Ansys (ANSS) will be reporting after today’s close. Also, shares of Disney (DIS) are lower today after CEO Robert Iger said he’ll be retiring.
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Q4 2019 Earnings Calendar
Posted by Eddy Elfenbein on February 26th, 2020 at 8:45 amTwenty-one of our 25 Buy List stocks are reporting their Q4 earnings during this earnings season. Here’s a list of reporting dates, Wall Street’s consensus estimates and actual reported results.
Eddy Elfenbein is a Washington, DC-based speaker, portfolio manager and editor of the blog Crossing Wall Street. His