Earnings Previews: Jabil, Lennar, Planet Labs, Trip.com
The three major U.S. equity indexes closed higher on Monday. The Dow Jones industrials ended the day up 1.58%, while the S&P 500 closed 1.43% higher and the Nasdaq up 1.26%. All 11 sectors closed higher, with energy (2.49%) and utilities (2.27%) adding the most. Consumer cyclicals (0.39%) and communication services (0.70%) posted the smallest gains.
The Bureau of Labor Statistics released the November consumer price index (CPI) before markets open Tuesday morning. CPI rose by 0.1% month over month, below economists’ expectations of a 0.3% month-over-month increase. Core CPI also rose less than expected, 0.2% compared to a consensus estimate of 0.3%. The report sent stocks to a solidly higher opening on Tuesday.
The Fed’s Open Market Committee (FOMC) begins its two-day meeting Tuesday, culminating in a Wednesday announcement of an expected interest rate increase of half a percentage point, down from the three-quarter point raises of the past several months. On Thursday, the Census Bureau releases November data on retail sales. The consensus estimate calls for a decline of 0.1%, compared to an increase of 1.3% in October. Weekly reports on U.S. petroleum inventories (Wednesday) and new claims for jobless benefits (Thursday) are also among the major economic announcements for the week ahead.
The three major indexes traded higher shortly after Tuesday’s opening bell.
After U.S. markets closed Monday, Oracle reported quarterly results that beat consensus estimates on both the top and bottom lines. Guidance for the February quarter was mixed, a little light on earnings per share (EPS) but a revenue range that is higher at the low end than the consensus estimate was. Shares traded up about 4.6% Tuesday morning.
Fluence Energy posted a wider-than-expected loss per share but beat the revenue estimate by more than 22%. Revenue was 135% higher year over year, and the loss per share shrank from $0.74 to $0.32. The stock traded up about 24% early Tuesday.
Before markets open on Wednesday, Arqit Quantum, Scorpio Tankers and Weber will report quarterly results.
Here is a preview of four companies set to report results late on Wednesday or first thing Thursday morning.
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Shares of manufacturing services provider Jabil Inc. (NYSE: JBL) have risen by about 12.5% over the past 12 months, including a spike earlier this month to an all-time high. Jabil reports quarter results before markets open on Thursday.
In early November, Jabil announced the temporary closure of six California plants for the final week to 10 days of December, resulting in 1,364 layoffs. The company did not specify if all the employees would return once the plants reopen. A week earlier, Jabil announced that Kenny Wilson would replace current chief executive and board chair Mark Mondello on May 1. Mondello will remain as executive chair. Wilson, 58, has been with the company since 2000.
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