Podcast Summary
Saudi Arabia changes oil production plan, Northrop Grumman buys back shares: Saudi Arabia abandons plan to expand oil production capacity, Northrop Grumman initiates $1B stock buyback, AMD reports Q4 earnings, global oil demand growth may be more cautious
Saudi Arabia has changed course and will maintain its current oil production capacity instead of expanding it, as indicated by an order from the Ministry of Energy to state-owned Aramco. This marks a significant shift from the country's previous plan to increase capacity to 13,000,000 barrels a day by 2027. Northrop Grumman, on the other hand, has entered into a $1,000,000,000 accelerated stock buyback agreement, buying back 80% of the shares under the deal on January 31st. In the earnings watch, Advanced Micro Devices is set to report Q4 earnings today, with expectations of strong performance due to tailwinds from artificial intelligence in 2024. Saudi Arabia's decision to maintain production capacity suggests a more cautious outlook on global oil demand growth in the coming years. Northrop Grumman's buyback agreement is part of its ongoing commitment to returning over 100% of its free cash flow to shareholders.
AMD and Whirlpool Earnings Reports: Mixed Results: AMD is projected to report strong earnings from AI chip sales, but may miss market estimates for Q1 guidance. Whirlpool beat earnings and revenue expectations but fell short on guidance, causing a stock decline.
Analysts anticipate AMD, the US chip designer, to report Q4 earnings in line with expectations but miss market estimates for Q1 guidance. The focus will be on demand for AMD's Mi 300 AI chips, with expectations of raising the prior sales forecast for 2024. Meanwhile, Whirlpool Corporation reported earnings that beat revenue and EPS expectations but fell short of market estimates for guidance. Arcos Dorados and JetBlue Airways are on watch for upcoming events. The market closed at new record highs on Monday, but futures are in the red today. AMD is expected to report strong earnings from its AI chip sales, potentially raising its sales forecast for 2024. However, Q1 guidance may miss market estimates due to Intel's weak report. Whirlpool reported earnings that beat expectations but missed consensus for guidance, leading to a decline in stock price. Arcos Dorados is on watch for an event in Sao Paulo, where shares have rallied in the past after strategy updates. JetBlue Airways will hold an earnings conference call amid high drama over a buyout attempt for Spirit Airlines. The market closed at new record highs on Monday, but futures are in the red today. The Dow is down 0.08%, the S&P 500 is down 0.05%, and the Nasdaq is down 0.02%. Crude oil is up 0.3% at more than $77 a barrel.
Bitcoin surges past 43,000, Supermicrocomputer stock soars following Q2 earnings report: Bitcoin continues to rise, surpassing 43,000. Supermicrocomputer's stock jumps over 10% after strong Q2 earnings report, projecting higher sales and earnings than expected.
Bitcoin continued its upward trend, surging past the 43,000 mark with a 2.8% increase. In the traditional stock market, the FTSE 100 and DAX both saw modest gains of 0.7% and 0.2% respectively. However, the real standout performer was Supermicrocomputer (SMCI), which saw its stock price soar by over 10% following the release of its Q2 earnings report. The company's net sales are projected to be significantly higher than expected, ranging between $3.7 to $4.1 billion, compared to the consensus estimate of $2.99 billion. Additionally, SMCI's non-GAAP EPS guidance for Q3 is set at $5.20 to $6.1, exceeding the consensus estimate of $4.65. The company also raised its full-year revenue guidance to a range of $14.3 to $14.7 billion, marking a substantial increase from the previous range of $10 to $11 billion. As the Federal Open Market Committee (FOMC) kicked off its two-day meeting, investors kept a close eye on the economic calendar, with the release of the FHFA house price index scheduled for 9 AM. Overall, it was a positive start to the week for both Bitcoin and the stock market.
