Analytics, News, and Forecasts for CFD Markets: stock news — 26-06-2019.

Analysts at Wells Fargo note that the May drop of 1.3% in durable goods orders reflects mostly aircraft weakness amid Boeing’s struggles, while the details are better with upticks in core capital goods orders and shipments, but the factory sector remains under pressure.

• “Durable goods orders for the month of May fell 1.3%, a full point worse than consensus expectations. The miss piles on to the recent run of worse than expected data coming from a broad swath of the economy, including the manufacturing sector but also housing and the consumer. Looking under the hood, however, suggests that capital spending is not falling off the rails, but equipment spending is still set to decline in the second quarter.
• Durable goods orders are particularly prone to miss forecasts based on the volatility in the sizeable aircraft sector. Boeing’s recent challenges with their 737 MAX model have amplified the importance of the transport sector on a month-to-month basis. Net cancellations led to nearly a 30% drop in nondefense aircraft orders over the month. That followed almost a 40% decline the previous month and obscures a modestly firmer trend in underlying core orders.
• While core capital goods orders suggest businesses are not fully retrenching as they await clarity on trade and contend with slowing growth abroad, equipment spending still looks set to contract this quarter.
• The upshot is that the pipeline for manufacturing remains weak, but is likely not as dire as recent regional PMIs or total durable goods orders suggest. The tabling of Mexican tariffs points to some room for improvement, but without a resolution to trade disputes with China, we expect factory activity to continue to languish amid the resulting uncertainty and floundering global growth.”

U.S. stock-index futures rose moderately on Wednesday, helped by the statement by the U.S. Treasury Secretary Steven Mnuchin that the U.S. and China were close to reaching a trade deal.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Micron (MU) reported Q3 FY 2019 earnings of $1.05 per share (versus $3.15 in Q3 FY 2018), beating analysts’ consensus of $0.79.

The company’s quarterly revenues amounted to $4.788 bln (-38.6% y/y), beating analysts’ consensus estimate of $4.698 bln.

The company also said it saw Q4 revenue in the range of $4.3-4.7 bln (versus analysts’ consensus estimate of $4.558 bln) and Q4 EPS in the range of $0.38-0.52 (versus analysts’ consensus estimate of $0.70).

MU rose to $35.50 (+8.63%) in pre-market trading.

FedEx (FDX) reported Q4 FY 2019 earnings of $5.01 per share (versus $5.91 in Q4 FY 2018), beating analysts’ consensus of $4.83.

The company’s quarterly revenues amounted to $17.807 bln (+2.8% y/y), generally in line with analysts’ consensus estimate of $17.851 bln.

The company guides its FY2020 non-GAAP EPS to show a mid-single-digit percentage point decline while analysts’ consensus is estimating 4% EPS growth.

FDX rose to $158.75 (+1.78%) in pre-market trading.