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Coca-Cola Poised for In-Line Quarterly Print Despite Global Macro Volatility, RBC Says

Coca-Cola's (KO) first-quarter results are likely to meet Wall Street's expectations, showing "resilience" despite a difficult global consumer environment amid war-driven concerns, RBC Capital Markets said Friday.The brokerage expects the beverages giant to report first-quarter adjusted earnings of $0.82 a share on net sales of $12.01 billion, with organic sales growth projected at 6.7% year over year. The Street expects EPS of $0.81 on sales of $12.17 billion while looking for organic sales growth of 6.5%, RBC said in a note to clients."We expect the quarter to be fine, with (Coca-Cola) delivering against (consensus) numbers, showing resilience despite the difficult environment," said Nik Modi, co-head of global consumer and retail research at RBC.The company is scheduled to report results Tuesday."While the Coke system continues to see good momentum on market share and top line, there is significant concern among the bottler community regarding aluminum inflation, the Midwest premium and the likely increase in logistics costs/pet packaging costs if the energy complex continues to inflate," Modi said in the note."While the system would normally just price for the inflation, we believe the current consumer environment might make it difficult to pull this lever right now," Modi wrote.Broad-based inflation concerns have grown in the wake of a jump in energy prices amid the closure of the crucial Strait of Hormuz following the US-Israel war with Iran that started at the end of February. Markets are optimistic about a fresh round of talks between the US and Iran in Pakistan over the weekend.Several international markets have implemented energy restrictions and/or conservation measures amid supply concerns arising from the Iran war. This can result in mobility restrictions and market disruptions, potentially posing risk for Coca-Cola's business in certain overseas markets, according to the note.RBC has an outperform rating and an $87 price target on the Coca-Cola stock.Earlier this month, beverage and snacks giant PepsiCo (PEP) reported higher-than-expected fiscal first-quarter results amid affordability initiatives while reiterating its full-year outlook.Price: $76.60, Change: $+0.32, Percent Change: +0.42%

$KO$PEP

US Markets60d ago

Equities Mostly Rise Intraday as Intel Rallies; Oil Falls Amid US-Iran Peace Talk Hopes

US benchmark equity indexes were mostly higher intraday amid Intel's (INTC) post-earnings rally, while oil prices moved lower on renewed hopes for a fresh round of peace talks between Washington and Iran.The Nasdaq Composite was up 1.4% at 24,785.3 after midday Friday, while the S&P 500 rose 0.7% to 7,154.6. The Dow Jones Industrial Average fell 0.3% to 49,157.6. Among sectors, technology paced the gainers with a 2.1% jump, while health care saw the biggest drop.Intel shares soared 21% intraday, the best performer on the S&P 500. Late Thursday, the chipmaker delivered a first-quarter beat amid artificial intelligence-driven demand for its products. The company issued an upbeat outlook for the ongoing quarter.Intel's post-earnings commentary suggests revenue upside potential for 2026 despite a likely conservative outlook for the second half of the year, UBS Securities said in a note.Several other major tech stocks were also advancing intraday Friday. Nvidia (NVDA) shares jumped 4.9%, the top gainer on the Dow, followed by Amazon.com's (AMZN) 3.1% increase. Advanced Micro Devices (AMD) and Qualcomm (QCOM) were up by double-digit percentage each, both among the best S&P 500 performers.Charter Communications (CHTR) reported first-quarter earnings below Wall Street's estimates as revenue declined annually, driven by weakness in the residential video and Internet segments. The company's shares plunged 22%, the steepest decline on the S&P 500.West Texas Intermediate crude was down 2.1% at $93.82 per barrel, while Brent lost 0.4% to $104.67.US special envoy Steve Witkoff and Jared Kushner will leave for Pakistan Saturday for a fresh round of talks with Iran, CNN reported Friday, citing White House press secretary Karoline Leavitt.The Iranians reached out to the US, "as the president called on them to do," and requested the in-person conversation, Leavitt reportedly said.US Treasury yields were lower intraday, with the 10-year rate down 1.6 basis points at 4.31% and the two-year rate falling 5.7 basis points to 3.79%In economic news, US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed."The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices," Surveys of Consumers Director Joanne Hsu said. "In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers."Gold was up 0.4% at $4,743.50 per troy ounce, while silver gained 1.2% to $76.44 per ounce.

Dow JonesNasdaq CompositeS&P 500$AMD$AMZN$CHTR$INTC$NVDA$QCOM

US Markets60d ago

Meta Platforms May Disclose More Job Cuts as AI Integration Ramps Up, Wedbush Says

Meta Platforms (META) may disclose more layoffs later this year as the technology giant looks to boost operational efficiency through artificial intelligence, Wedbush Securities said in a note.Meta is laying off roughly 8,000 employees, about 10% of its workforce, to improve efficiency and help it cover other investments, Bloomberg News reported Thursday, citing a memo sent to the company's employees.In addition, the Facebook parent will no longer hire for about 6,000 open roles, according to the report. Meta spokesperson Tracy Clayton confirmed the content of the Bloomberg article.Meta is likely targeting a leaner operating structure by leveraging AI tools to automate tasks, Wedbush analysts including Dan Ives said in the note on Thursday."While this number represents a significant cut to its workforce, we note that additional layoffs could come later this year," Ives wrote.Shares of Meta, which also owns WhatsApp and Instagram, rose 3.3% in Friday trade.Meta said in January it expected capital spending at $115 billion to $135 billion in 2026, driven by increased investment to support the Meta Superintelligence Labs efforts and its core business. Meta has seen a series of job cuts over the past few months, including a 10% workforce reduction within Reality Labs, Wedbush said."While we acknowledge investor concern around management's intent to invest more deeply this year, we believe the company is taking a more intentional approach, and this cycle is more disciplined than Meta's investment thesis four years ago," Ives said.Meta is scheduled to release its first-quarter results on April 29.Price: $680.10, Change: $+20.95, Percent Change: +3.18%

$META

US Markets60d ago

Intel's Post-Earnings Remarks Indicate Full-Year Revenue Upside Potential, UBS Says

Intel's (INTC) post-earnings commentary suggests revenue upside potential for 2026 despite a likely conservative outlook for the second half of the year, UBS Securities said in a note e-mailed Friday.Late Thursday, the chipmaker posted stronger-than-expected first-quarter results amid artificial intelligence-driven demand for its products. The company issued an upbeat outlook for the ongoing quarter."We're prudently planning for (personal computer) demand to weaken in the second half of the year and expect the full-year PC unit (total addressable market) to be down low-double-digit percent in line with industry peers and experts," Intel Chief Financial Officer David Zinsner said on an earnings conference call late Thursday, according to a FactSet transcript.The CFO's outlook implies full-year revenue of about $58 billion, or roughly $4 billion higher than the pre-call Wall Street estimate, and up 10% year over year, UBS analysts, including Timothy Arcuri, said in a note to clients."The rapid inflection in server (central processing unit) demand has put (Intel) in a position to better control its destiny this year, so the odds are that even the implied commentary for (the second half) is still probably conservative and numbers still have upside," the analysts wrote.UBS raised its price target on the Intel stock to $83 from $65 while maintaining its neutral rating.The company's shares were up 21% in Friday afternoon trade. So far this year, the stock has surged 118%."The newsflow on foundry should also remain positive as the release of the 14A production design kit late this year probably catalyzes one or more foundry deals with [Nvidia (NVDA), Apple (AAPL), maybe Amazon (AMZN)] and a high-end consumer product," the UBS analysts said. "The manufacturing narrative is playing out about as we expected, but we have under-estimated how much the market was willing to overlook a lack of earnings power."Customer order patterns in the near term continue to be "very robust" across Intel's businesses, Zinsner said on the call. Over the past 90 days, the company's outlook for server CPU demand has improved, with expectations for a strong year of double-digit unit growth for Intel and the broader industry, Zinsner said, adding that the momentum is seen extending into next year.Price: $81.22, Change: $+14.44, Percent Change: +21.62%

$AAPL$AMZN$INTC$NVDA

US Markets60d ago

Consumer Sentiment at Record Low Despite Upward Revision

US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday.The main sentiment index fell 6.6% to 49.8 from last month. The consensus in a Bloomberg-compiled poll expected the April reading to be revised to 48.5 from the preliminary estimate of 47.6.The index remained at an all-time low despite the upward revision, Jefferies said in a note."The Iran conflict appears to influence consumer views primarily through shocks to gasoline and potentially other prices," Surveys of Consumers Director Joanne Hsu said. "In contrast, military and diplomatic developments that do not lift supply constraints or lower energy prices are unlikely to buoy consumers."The year-ahead inflation outlook jumped to 4.7% this month from 3.8% in March, marking the biggest one-month gain since April, the University of Michigan survey showed. The five-year inflation projection climbed up to 3.5%, the highest since October, from 3.2% a month ago.Energy prices have surged in the aftermath of the US-Israel war with Iran that has disrupted shipments through the Strait of Hormuz. President Donald Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue.A quarter-long closure of the crucial Strait of Hormuz will likely push US inflation higher by 0.6 percentage points this year, researchers at the Federal Reserve Bank of Dallas said last week.The gauge for current economic conditions fell to 52.5 in April from 55.8 in March, while the expectations measure declined 7% to 48.1, the University of Michigan reported."Decreases in sentiment were seen across political party, income, age, and education," Hsu said. "Expected business conditions declined for both short and long time horizons, nearly matching year-ago readings when the reciprocal tariff regime was implemented."

US Markets60d ago

SLB Posts Mixed Results Amid Headwinds From Middle East Conflict

SLB (SLB) reported mixed first-quarter results year-over-year on Friday, reflecting headwinds from the Middle East conflict.The oilfield services company's adjusted per-share earnings fell to $0.52 for the March quarter from $0.72 a year earlier, while analysts in a FactSet poll expected $0.51. Revenue grew 3% to $8.72 billion and surpassed Wall Street's $8.63 billion estimate."It was a challenging start to the year as widespread disruptions in the Middle East impacted our business," Chief Executive Olivier Le Peuch said in a statement. "The impact was most pronounced in well construction and reservoir performance, as SLB demobilized operations in a number of countries in response to customer actions to safeguard personnel and facilities."Revenue in the well construction segment contracted 6% year over year to $2.8 billion, though it exceeded the consensus of $2.62 billion. The reservoir performance division's revenue dropped 6% to $1.59 billion. Digital revenue increased 9%, while production systems surged 23% to $3.51 billion."Beyond the Middle East, revenue increased year on year in all other markets driven mainly by the impact of our strategic moves regarding ChampionX, digital, and data center solutions," said Le Peuch. SLB, formerly known as Schlumberger, acquired rival ChampionX last year.An extended ceasefire between the US and Iran following weeks of hostilities continues to hold. President Donald Trump said Thursday that the ceasefire between Israel and Lebanon will also be extended. The conflict between Israel and Hezbollah in Lebanon has been one of the sticking points in US-Iran peace efforts."We entered 2026 anticipating that global liquid supply and demand would gradually rebalance throughout the year and into 2027," Le Peuch said. "However, the conflict in the Middle East has accelerated this rebalancing while exposing critical vulnerabilities in the global energy supply chain."SLB's New York Stock Exchange-listed shares rose 2.4% in Friday trade. The stock has surged 46% since the start of the year."We expect post-conflict liquid commodity prices to remain above pre-conflict levels," Le Peuch said. "This reflects the near-term supply disruptions caused by infrastructure impairments, production impacts, and geopolitical risk premium."Price: $56.17, Change: $+1.43, Percent Change: +2.60%

$SLB

US Markets60d ago

HCA Healthcare Tops First-Quarter Estimates; Respiratory Admissions Fall

HCA Healthcare's (HCA) first-quarter results exceeded market expectations, though the hospital operator said it did not see its usual seasonal lift in admissions amid declines in respiratory activity.The company on Friday reported adjusted earnings of $7.15 a share for the quarter ended March 31, up from $6.45 the year before, surpassing the FactSet-polled consensus of $7.12. Revenue improved 4.3% to $19.11 billion, topping the Street's view for $19.09 billion.HCA Healthcare didn't experience its typical increase in seasonal volume during the quarter, mainly due to respiratory activity, the company said. Admissions related to respiratory issues dropped 42% on a yearly basis, while respiratory-related emergency room visits slipped 32%. The winter storm in January also weighed on quarterly volume in certain markets, it said.The unfavorable volume headwinds were mostly offset by recognition of certain Medicaid supplemental programs, which weren't reflected in its initial full-year outlook, according to the company.HCA Healthcare's stock fell 7.4% in Friday trade, extending its year-to-date loss to 7.6%."The start of the year presented a dynamic environment for HCA Healthcare," Chief Executive Sam Hazen said in a statement.Same facility admissions edged up 0.9%, while emergency room visits nudged 0.3% higher, the company said. Same facility inpatient surgeries slipped 0.3%, while outpatient surgeries declined 1.7%.The firm continues to project net income to come in between $29.10 and $31.50 a share on a revenue range of $76.5 billion to $80 billion for 2026. The Street is looking for EPS of $30.39 and sales of $78.6 billion for the year.Price: $448.41, Change: $-25.62, Percent Change: -5.40%

$HCA

US Markets60d ago

Charter Communications Misses Quarterly Earnings Estimates as Residential Weakness Weighs

Charter Communications (CHTR) reported first-quarter earnings below Wall Street's estimates as revenue declined annually, driven by weakness in the residential video and Internet segments.Earnings for the quarter rose to $9.17 per share from $8.42 a year earlier. Analysts polled by FactSet expected $9.96. Revenue declined 1% to $13.6 billion, compared with the Street's $13.55 billion view.Charter's shares plunged 20% in Friday trading. The stock is down 7.7% so far this year. Charter operates the Spectrum brand, which offers Internet, mobile, TV and voice products.Residential revenue decreased 2.7% to $10.49 billion as video sales fell 9.2%. Internet revenue slipped 1.3% to $5.85 billion.In the March quarter, total internet customers fell by 120,000, driven by a 117,000 decline in residential subscribers. Last year, the company reported a 59,000 drop in total customers.Mobile line net additions eased to 368,000 from 507,000.Media and connectivity giant Comcast's (CMCSA) first-quarter results topped the Street's estimates Thursday as it benefited from the Milan Cortina Winter Olympics and Super Bowl LX. AT&T (T) reported better-than-expected first-quarter results on Wednesday, while the telecommunications giant reiterated its full-year earnings outlook.Price: $203.20, Change: $-38.59, Percent Change: -15.96%

$CHTR$CMCSA$T

US Markets60d ago

Procter & Gamble Fiscal Third-Quarter Results Top Street Views; Maintains Full-Year Outlook

Procter & Gamble (PG) reported stronger-than-expected fiscal third-quarter results on Friday, while the consumer goods giant reiterated its full-year outlook.The maker of Crest toothpaste and Pampers diapers posted adjusted earnings of $1.59 a share for the quarter ended March, up from $1.54 the year before, topping the FactSet-polled consensus for $1.56. Sales rose 7% to $21.24 billion, ahead of the Street's view for $20.53 billion.The stock increased 3% in the most recent premarket activity."We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions," Chief Executive Shailesh Jejurikar said in a statement. "We're increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment, while still maintaining our guidance ranges for the fiscal year."Procter & Gamble continues to project adjusted EPS to be in a range of $6.83 to $7.09 for fiscal 2026, while the Street is looking for $6.93. It also maintained its full-year sales growth guidance of 1% to 5% and organic revenue forecast of in line to up 4% year over year.On a net basis, per-share earnings are still pegged to grow by 1% to 6% for the ongoing fiscal year.Procter & Gamble recorded overall gains of 1% in price in the third quarter, while volume advanced 2%. Foreign exchange was a tailwind of 4% to the topline. On an organic basis, which excludes foreign-exchange impact, sales were up 3% while volume inclined 2%.Sales in the fabric and homecare, grooming and healthcare segments rose 7% each on an annual basis in the quarter. The beauty segment recorded an 11% jump in revenue to $3.87 billion, while sales in the baby, feminine and family care business moved 6% higher to $5.06 billion.Core gross margin declined by 100 basis points versus the prior-year period, amid unfavorable mix, reinvestments and higher costs from tariffs, among other factors, the company said."We continue to believe the best path to sustainable, balanced growth is by strengthening execution of our integrated growth strategy," according to Jejurikar. "We are confident in the progress we're making and excited about the longer-term opportunity."

$PG

US Markets60d ago

Stocks Mostly Up Pre-Bell as Israel, Lebanon Agree to Extend Ceasefire

The benchmark US stock measures were mostly pointing higher before the open Friday as President Donald Trump announced an extension of the ceasefire between Israel and Lebanon.The S&P 500 edged up 0.1% and the Nasdaq increased 0.9%, while the Dow Jones Industrial Average declined 0.3%. The indexes finished the previous trading session lower.In a social media post on Thursday, Trump said the ceasefire between Israel and Lebanon will be extended by three weeks after representatives from the two countries met at the White House. Trump announced a 10-day ceasefire between Israel and Lebanon last week."The meeting went very well!" Trump wrote. "The United States is going to work with Lebanon in order to help it protect itself from Hezbollah."The conflict between Israel and Hezbollah in Lebanon has been a key sticking point in US-Iran peace efforts, which are showing no apparent signs of progress."Hopes for a resolution between the US and Iran are fading as peace talks stall," ING Bank said in a Thursday report. "If no progress is made, the market will become increasingly numb to the noise and headlines that have dictated price action recently."Trump on Thursday ordered the US navy to "shoot and kill any boat" placing mines in the Strait of Hormuz. Separately, the US leader claimed that the US has "total control" over the key oil supply chokepoint.Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue. Iran's Islamic Revolutionary Guard Corps on Wednesday reportedly seized two tankers attempting to cross the Strait of Hormuz.West Texas Intermediate crude oil rose 1.3% to $97.08 a barrel before the opening bell, while Brent gained 1.6% to $106.76.Treasury yields were trending upwards in premarket action, with the two-year rate increasing 1.5 basis points to 3.84% and the 10-year rate adding 0.8 basis points to 4.33%.Shares of Intel (INTC) jumped 27% pre-bell after the chipmaker reported first-quarter results above Wall Street's estimates. Advanced Micro Devices (AMD) climbed 11% while Lucid (LCID) rebounded 0.4% following a 9.3% drop at the close of Thursday.Procter & Gamble (PG), HCA Healthcare (HCA), SLB (SLB) and Charter Communications (CHTR) report their latest financial results before the bell, among others.Friday's economic calendar has the final University of Michigan consumer sentiment report for April at 10 am ET, followed by the weekly Baker Hughes oil-and-gas rig count at 1 pm.Gold declined 0.6% to $4,695 per troy ounce, while bitcoin was slightly up at $77,789.

Dow JonesNasdaq CompositeS&P 500$AMD$CHTR$HCA$INTC$LCID$PG$SLB

US Markets60d ago

Volvo Group Maintains First-Quarter Margin as Tariffs, Currency Weigh on Earnings

AB Volvo (VOLV-A.ST, VOLV-B.ST), d/b/a Volvo Group, reported "solid" profitability in the first quarter of 2026, recording an adjusted operating margin of 11% despite market slowdown and geopolitical headwinds impacting sales.While Swedish automaker's adjusted operating margin climbed from 10.9% previously, the group's adjusted operating income for the quarter came in at 12.17 billion kronor, down from 13.26 billion kronor a year ago, according to a Friday earnings release.The decline was attributed to higher US tariffs, freight costs and manufacturing under-absorption, partly offset by service growth, lower research and development spending, and a "favorable" product and market mix. Operating income was also weighed down by 1.11 billion kronor in negative currency effects and a 1 billion kronor tariff headwind, with "about half" affecting the construction equipment division.Volvo Group's attributable income for the three months ended March 31 fell year over year to 8.32 billion kronor from 9.89 billion kronor previously, while net sales declined by 9% to 110.77 billion kronor. The result was dragged by a 13% drop in the group's construction equipment segment to 18.31 billion kronor following the sale of its interest in China-based SDLG.Even with these pressures, Volvo Group President and Chief Executive Officer Martin Lundstedt highlighted a "good" performance across the company's business segments. "Despite the ongoing geopolitical uncertainties, customer confidence in our products and services remained strong, reflected in good order intake and low cancellations throughout the quarter," Lundstedt added.Notably, Volvo Group's trucks division saw order intake rise 14% year over year to 62,755 trucks, with orders in North America surging 78%. RBC Capital Markets highlighted this order surge, as the research firm adopted a positive sentiment on the update."Adj. EBIT was 4% above consensus, with clear margin beats in all four industrial divisions. Trucks order intake was 7% above with book-to-bill at 1.35x, while the CE book-to-bill was 1.10x. The trucks market outlooks for Europe and Brazil have been lifted slightly... Volvo continues to manage the cycle well, and with NA truck demand likely to gain momentum through the year and with CE in the early innings of a restocking phase, we think solid profitability can continue," RBC wrote.Volvo Group's shares were trading 1% higher in Stockholm as of Friday midday.

$VOLV-A.ST$VOLV-B.ST

US Markets60d ago

Japan Inflation Rate Edges Higher, But Still Modest in March

Japan's consumer price index (CPI) edged higher in March, boosted by food and energy costs, but remained relatively moderate, reported the Statistics Bureau on Friday.The nation's widely quoted CPI-core, which strips out fresh food bills, rose 1.8% in March on year, up from 1.6% in February, but still below the 2% annual inflation target of the Bank of Japan.Japan's CPI-core-core, which also strips out energy bills, rose 2.4% in March, modestly easing from a 2.5% rise in March.The nation's headline CPI rose 1.5% in March on year, accelerating from February's near four-year low gain of 1.3% on year, added the Statistics Bureau.Housing rent increases remained modest in Japan, rising 0.7% on year in March, while electricity bills fell 8% on year, the latter decline due to government subsidies.Rice, which in mid-2025 has nearly doubled in price, rose 6.8% on year in March, and fell 2.5% from February.The Bank of Japan will hold a policy session next week and is expected to reveal on Tuesday what adjustments will be made to its key policy rate, which has been kept at 0.75% since December of last year.Japan's central bankers have indicated intentions to lift rates but also to keep labor markets tight enough that real wages rise, thus boosting consumption and the overall economy."We still see an April hike possible if the BoJ gives priority to preventing inflation expectations from accelerating," said ING Think, an arm of the Dutch investment house. "We expect further inflation acceleration in the coming months. On top of rising global energy prices, the weak Japanese yen should add more pressure on domestic prices."

Nikkei 225

US Markets60d ago

Beijing Kingsoft Office Software's Attributable Profit Surges in Q1

Beijing Kingsoft Office Software's (SHA:688111) attributable profit surged 445% to 2.20 billion yuan in the first quarter from 402.8 million yuan in the year-ago period, according to a Thursday disclosure to the Shanghai bourse.Earnings per share at the subsidiary of Hong Kong-listed Kingsoft (HKG:0388) soared 443% to 4.72 yuan from 0.87 yuan in the prior-year period.Kingsoft Office attributed the "significant" net profit increase to substantial investment income from its investment fund projects.However, the company flagged possible valuation fluctuations in investment returns.Revenue at the core unit of Kingsoft jumped 24% to 1.61 billion yuan from 1.30 billion yuan, close to the midpoint of guidance at about 1.6 billion yuan, the consensus estimate of 1.5 billion yuan, and Jefferies' estimate of 1.4 billion yuan.The office software company's WPS Personal Business line saw revenue rise 14% to 975 million yuan.WPS 365's revenue surged 61% to 244 million yuan, while its WPS software business jumped 32% to 347 million yuan.Monthly active devices using WPS Office grew 4% to 672 million, with PC users rising 9.1% due to a decline in smartphone shipments.Kingsoft Office attributed the growth to its promotion of artificial intelligence products across its domestic and international markets, according to its filing with the Shanghai bourse.The company's artificial intelligence, work collaboration and international strategies are on track, Jefferies said in its report.The investment bank maintained its buy rating on the WPS Office maker.Jefferies flagged risks such as more intense competition from new entrants with higher capital, user experience on product upgrades and sub-par new releases, and aggressive overseas expansion spending.

HKG:3888SHA:688111

US Markets60d ago

Oracle On Path to Become 'Foundational' AI Infrastructure Provider, CapEx Concerns Misread, Wedbush Says

Oracle (ORCL) is on track to become a "foundational" infrastructure provider for the artificial intelligence revolution, with investors misreading the risks tied to its capital spending, Wedbush Securities said in a Friday client note.The brokerage initiated its coverage on the cloud computing company with an outperform rating on the stock and a 12-month price target of $225. Shares of the firm were up 1.6% in the most recent premarket activity, having lost 9.6% so far this year.Wedbush believes Oracle is in the early stages of a backlog-driven AI expansion, with its cloud infrastructure service having a key advantage over complex legacy cloud platforms. The company's strategy to integrate proprietary enterprise data with strong AI models is also creating real-world business value, according to the brokerage."We believe Oracle is in the early innings of a significant repositioning as it executes on this generational opportunity," Wedbush analysts, including Dan Ives, wrote in the note. "The vision is supported by partnerships with AI leaders like OpenAI and Nvidia (NVDA), and endeavors like the Stargate project."The downside case on Oracle centers on its capital expenditures and negative free cash flow, but this view is "backward-looking" and "fails to appreciate the scale of contracted demand underpinning the investment," Wedbush said.Oracle's remaining performance obligations have increased to $553 billion, driving its capital expenditure-to-RPO ratio to about 9%, compared with the group average of roughly 45.6%, Wedbush said. "This demonstrates that spending is not speculative but is deployed to service a massive backlog," according to Ives.In February, Oracle disclosed plans to raise between $45 billion and $50 billion this year to expand its cloud infrastructure business through a combination of debt and equity financing. The company said at the time that it would raise funds to build additional capacity and meet the contracted demand from its largest cloud customers, including Nvidia."As Oracle continues to convert its backlog into revenue, we expect the market narrative to shift from focusing on capex risk to the durable, long-term growth story that is unfolding," Ives wrote in the note.

$ORCL

US Markets60d ago

Aluminum of China's Q1 Profit Jumps 56% Amid Aluminum Output Boost

Aluminum of China (SHA:601600, HKG:2600), or Chalco, saw its first-quarter attributable profit jump over 50% as aluminum production bolstered despite the ongoing war in Iran.The aluminum producer's Hong Kong shares rose 2% and Shanghai shares rose 1% during the Friday's afternoon trade.Chalco's net profit attributable to shareholders jumped 56% to 5.53 billion yuan from 3.54 billion yuan a year earlier, according to a Hong Kong bourse filing on Thursday.Earnings per share rose 57% to 0.322 yuan from 0.205 yuan.Revenue increased 4.9% to 58.5 billion yuan from 55.8 billion yuan in the prior year.The year-ago figures were adjusted due to the acquisition of a controlling stake in Ningbo Algra Energy. Chalco acquired 56.6% of Algra Energy through its subsidiary, Chalco Zhengzhou Nonferrous Metals Research Institute.Chalco continued to expand its global mineral assets as it agreed to buy 67% of Brazil's Companhia Brasileira de Aluminio. The deal was made with Australia-listed miner Rio Tinto (ASX:RIO), which acquired the remaining 33% of the Brazilian company.Rio Tinto's chief executive officer, Jérôme Pécresse, said the acquisition "provides the opportunity to grow our bauxite and alumina supply chain in the Atlantic region."Moreover, Chalco is likely to benefit from the ongoing Middle East conflict as China's metals and minerals sector made gains from the external changes the disruption brought.China's aluminum output surged after the U.S. and Israel launched attacks against Tehran in March as alumina --- the main raw material for aluminum --- was rerouted to the mainland. Data from the customs showed that alumina imports increased 87% month on month to 338,000 tons in March, almost 30 times higher than a year earlier, according to an April 21 report on Bloomberg News.The closure of the Strait of Hormuz hindered the alumina imports to the Middle East, which accounted for 9% of the global aluminum supply, the report said.

ASX:RIOHKG:2600SHA:601600

US Markets61d ago

Nasdaq, S&P 500 Retreat From Record Highs as Tech Shares Fall, Oil Climbs

The Nasdaq Composite and the S&P 500 pulled back from record highs on Thursday, dragged down by a sell-off in technology stocks, while oil prices rose.The Nasdaq fell 0.9% to 24,438.5, while the S&P 500 dropped 0.4% to 7,108.4, a day after both indexes notched record-high closing levels. The Dow Jones Industrial Average dropped 0.4% to 49,310.3. Tech saw the steepest decline among sectors, shedding 1.5%, while utilities paced the gainers with a 2.8% advance.ServiceNow (NOW) shares sank nearly 18%, the worst performer on the S&P 500, following its quarterly results.Shares of other major tech names also fell, with Salesforce (CRM) down 8.7%, the steepest decline on the Dow. Microsoft (MSFT) lost 4%, while tech bellwether Nvidia (NVDA) shed 1.4%.International Business Machines (IBM) followed Salesforce on the Dow, as the stock tumbled 8.3%. Late Wednesday, the technology giant maintained its full-year revenue growth outlook even as it reported first-quarter results above Wall Street's estimates.Tesla (TSLA) slumped 3.6% despite the company reporting stronger-than-expected first-quarter results. The electric vehicle manufacturer is ramping up its capital investments, which will result in a negative free cash flow for the rest of 2026, according to Chief Financial Officer Vaibhav Taneja.Tesla's aggressive capital spending on artificial intelligence initiatives should boost revenue, though it may take some time before those gains materialize, UBS Securities said in a Thursday note to clients.American Express (AXP) shares fell 4.3%, also among the biggest declines on the Dow, even as the payments company reported better-than-expected first-quarter results and reiterated its full-year outlook.West Texas Intermediate crude oil was up 3.7% at $96.37 per barrel in Thursday late-afternoon trade, on track for its fifth day of gains. Brent rose 3.8% to $105.82, extending its advance to a fourth day.US President Donald Trump ordered the US navy to "shoot and kill any boat" placing mines in the Strait of Hormuz, he said in a social media post on Thursday. Separately, Trump claimed that the US has "total control" over the key oil supply chokepoint.Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue. Iran's Islamic Revolutionary Guard Corps on Wednesday reportedly seized two tankers attempting to cross the Strait of Hormuz."Hopes for a resolution between the US and Iran are fading as peace talks stall," ING Bank said Thursday in a report. "If no progress is made, the market will become increasingly numb to the noise and headlines that have dictated price action recently."A second round of ceasefire talks between Israel and Lebanon was scheduled to take place at the White House on Thursday, according to media reports. On April 16, Trump announced a 10-day ceasefire between Israel and Lebanon.US Treasury yields were higher, with the 10-year rate up 2.2 basis points at 4.33% and the two-year rate rising 3.6 basis points to 3.84%.In economic news, government data showed weekly applications for unemployment insurance in the US increased more than expected, while continuing claims largely matched Wall Street's estimates."We remain of the mind that the conflict in Iran is unlikely to cause significant disruptions in the US labor market," Jefferies Chief US Economist Thomas Simons said in a note on Thursday. "There are many vulnerable points in the global economy that are at risk in the near-term due to potential shortages of all sorts of commodities, but for better or worse, the US economy is likely going to be the most insulated in the world."Gold was down 0.9% at $4,712.20 per troy ounce, while silver lost 3.2% to $75.46 per ounce.

Dow JonesNasdaq CompositeS&P 500$AXP$CRM$IBM$MSFT$NOW$NVDA$TSLA

US Markets61d ago

Intel Beats First-Quarter Views Amid AI-Driven Demand; Shares Rally After-Hours

Intel (INTC) reported first-quarter results above Wall Street's estimates as the chipmaker benefited from artificial intelligence-driven demand for its products.Adjusted earnings for the quarter rose to $0.29 per share from $0.13 a year earlier. Analysts polled by FactSet expected $0.02. Revenue grew 7% to $13.58 billion, compared with the Street's $12.42 billion view.Intel's shares climbed 16% in after-hours trading. The stock is up 81% so far this year through Thursday close."The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic," Chief Executive Lip-Bu Tan said in a statement. "This shift is significantly increasing the need for Intel's (central processing units) and wafer and advanced packaging offerings."RBC Capital Markets expected Intel to deliver a "slight" first-quarter beat amid strength in server CPU demand."While demand remains strong, management expected internal wafer supply constraints to be most acute in (the first quarter) which could limit near-term upside," RBC analyst Srini Pajjuri said in a note emailed Tuesday. "Recent media reports point to Intel raising prices which should help."For the second quarter, Intel expects adjusted EPS of $0.20 on revenue of $13.8 billion to $14.8 billion. Analysts are looking for $0.10 and $13.11 billion, respectively."We remain focused on maximizing our factory network to improve available supply and meet our customers' needs throughout the year," Chief Financial Officer David Zinsner said.Sales within the client computing segment increased 1% annually to $7.7 billion in the first quarter, while data center and AI climbed 22%. Foundry revenue surged 16% to $5.4 billion.

$INTC

US Markets61d ago

CSX Turnaround Largely Reflected in Stock Valuation, Morgan Stanley Says in Downgrade

CSX's (CSX) turnaround efforts are going well, but they are largely reflected in the stock's valuation, Morgan Stanley said in a note e-mailed Thursday.Late Wednesday, the rail-based freight transportation supplier reported stronger-than-expected first-quarter earnings, while its revenue fell just short of Wall Street's projections. The company achieved the results as it advanced its efforts to improve efficiency and streamline cost structure, Chief Executive Steve Angel said on an earnings conference call, according to a FactSet transcript."Execution under new CEO Angel is progressing well, with productivity gains, improving efficiency, and a sizable project pipeline supporting volume growth into the cycle," Morgan Stanley said in a note to clients. "However, we believe this turnaround is now largely reflected in both estimates and the stock."The brokerage downgraded its rating on the CSX stock to underweight from equal-weight while keeping its price target at $30.CSX shares were up 7% in Thursday late-afternoon trade, bringing its year-to-date gains to 27%.Although the company's recovery is going well, the stock has run "too far, too fast," Morgan Stanley said. "Without incremental positive surprises, we see downside risk, particularly as expectations build and competition from truck intensifies deeper into the cycle."The brokerage said it sees any "tangible" merger and acquisition developments as unlikely before late next year, limiting the company's relevance in the near term."We will closely track the pace of productivity gains and pipeline conversion, but we also see truck competition intensifying (versus) rail as we push deeper into the upcycle and better risk-reward at other rails," Morgan Stanley said.Railroad operator Union Pacific (UNP) affirmed its full-year earnings outlook Thursday, while its first-quarter bottom-line topped the Street's estimates.Price: $45.95, Change: $+2.77, Percent Change: +6.40%

$CSX$UNP

US Markets61d ago

Equities Fall Intraday Amid Tech Sell-Off; Oil Rises

US benchmark equity indexes were lower intraday as traders dumped technology stocks, while increased tensions in the Strait of Hormuz sent oil prices higher.The Nasdaq Composite was down 1.3% at 24,336.1 after midday Thursday, while the Dow Jones Industrial Average shed 0.9% to 49,068.4. The S&P 500 lost 0.9% to 7,076.7. Both the Nasdaq and the S&P 500 hit fresh record highs in the previous session.Among sectors, technology saw the steepest decline, shedding 1.8% intraday, while utilities paced the gainers with a 2.4% advance.ServiceNow (NOW) shares sank 18%, the worst performer on the S&P 500, following its quarterly results.Shares of other major tech names were also lower, including Salesforce (CRM), down 9.3% intraday, which was the steepest decline on the Dow, while Microsoft (MSFT) fell 4.2%.International Business Machines (IBM) followed Salesforce on the Dow, falling 9%. Late Wednesday, the technology giant maintained its full-year revenue growth outlook even as it reported first-quarter results above Wall Street's estimates.Tesla (TSLA) declined 2.9% intraday, despite the company reporting stronger-than-expected first-quarter results. The electric vehicle manufacturer said late Wednesday that it is ramping up its capital investments, while Chief Financial Officer Vaibhav Taneja flagged a negative free cash flow for the rest of 2026.Tesla's aggressive capital spending on artificial intelligence initiatives should boost revenue, though it may take some time before those gains materialize, UBS Securities said in a Thursday note to clients.American Express (AXP) shares were down 4.6%, among the biggest declines on the Dow, even as the payments company reported better-than-expected first-quarter results and reiterated its full-year outlook.West Texas Intermediate crude oil was up 3.9% at $96.60 per barrel, while Brent rose 3.6% to $105.55.US President Donald Trump ordered the US navy to "shoot and kill any boat" placing mines in the Strait of Hormuz, he said in a social media post on Thursday.In another post, Trump claimed that the US has "total control" over the key oil supply chokepoint, which he said was sealed "until such time as Iran is able to make a deal."Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue. Iran's Islamic Revolutionary Guard Corps on Wednesday reportedly seized two tankers attempting to cross the Strait of Hormuz."Hopes for a resolution between the US and Iran are fading as peace talks stall," ING Bank said Thursday in a report. "If no progress is made, the market will become increasingly numb to the noise and headlines that have dictated price action recently."US Treasury yields were higher intraday, with the 10-year rate up 1.9 basis points at 4.33% and the two-year rate rising 2.1 basis points at 3.83%.In other company news, Comcast (CMCSA) reported higher-than-expected first-quarter results as the media and connectivity giant benefited from the Milan Cortina Winter Olympics and Super Bowl LX. The company's shares were up 8.3% intraday.Thermo Fisher Scientific (TMO) raised its full-year outlook on Thursday as first-quarter results came in stronger than expected, even as organic growth fell short of analysts' estimates. The stock was down nearly 11%, among the steepest declines on the S&P 500.Lockheed Martin's (LMT) first-quarter earnings decreased more than expected, while its sales fell short of market estimates. The defense contractor's shares were 5.5% lower.Gold was little changed at $4,751 per troy ounce, while silver lost 2.2% to $76.29 per ounce.

Dow JonesNasdaq CompositeS&P 500$AXP$CMCSA$IBM$LMT$MSFT$NOW$TMO$TSLA

US Markets61d ago

Union Pacific Affirms Full-Year Earnings Guidance Following First-Quarter EPS Beat

Union Pacific (UNP) affirmed its full-year earnings outlook, while its first-quarter bottom-line topped Wall Street's estimates, sending the railroad operator's shares higher Thursday.The company said it continues to expect per-share earnings growth of mid-single digit this year."Beyond 2026, we remain committed to attaining our three-year (compound annual growth rate) target of high-single-digit to low-double-digit EPS growth throughout 2027," Chief Financial Officer Jennifer Hamann said on an earnings conference call Thursday, according to a FactSet transcript.Union Pacific expects full-year coal results to be "positive," despite current natural gas pricing, Kenyatta Rocker, executive vice president of marketing and sales, said on the call. Improving export demand to China, along with sustained momentum into Mexico, places the company's grain business "well" to support growth, Rocker added.First-quarter EPS rose to $2.87 from $2.70 a year earlier, exceeding the FactSet-polled consensus of $2.84. Operating revenue increased 3% to $6.22 billion, just shy of the Street's $6.23 billion views.The company's stock was up 7.1% in Thursday late-afternoon trade, extending its year-to-date gains to 16%.First-quarter freight revenue for the bulk segment advanced 10% year over year to $2.03 billion, led by a 17% jump in coal and renewables. Industrial revenue increased 5% to $2.19 billion."Our first-quarter business mix was positive, although not as favorable as we might have expected, due to the higher volume in our lower average revenue per car businesses, such as coal and rock, combined with lower volume on some of the higher (average revenue per car) businesses, such as food and refrigerated and forest products," Hamann told analysts.Revenue for the premium segment, which covers intermodal and automotive, declined 5% to $1.68 billion for the quarter."As expected, lower West Coast imports and customer shifts had a drag on international intermodal volumes, which decline 28% versus last year," Rocker told analysts.Price: $267.94, Change: $+18.54, Percent Change: +7.43%

$UNP

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US Markets61d ago

Nasdaq, S&P 500 Retreat From Record Highs as Tech Shares Fall, Oil Climbs

Dow JonesNasdaq CompositeS&P 500$AXP$CRM$IBM$MSFT$NOW$NVDA$TSLA