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Tuesday, Oct. 19, 2022
Today’s newsletter is by Brian Sozzian editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Read this and more market news on the go with Yahoo Finance App.
If you aren’t listening, you aren’t learning — this is a motto I have long modeled my life around.
So I put that into practical application at Yahoo Finance’s 9th annual All Markets Summit this week. Did I get every question I posited in these pages on Monday answered? Nope.
Were some questions dodged a little? Sure, my team and I spoke with a host of well-known public company CEOs weeks before they are set to report earnings. It’s not like someone is going to say on live TV, “Hey Sozzi, we are going to beat on earnings by 10 cents — buy our stock.”
But by and large, I was pleased with the dialogues. Here are a few hot takeaways from Yahoo Finance’s various chats.
Target (TGT) CEO Brian Cornell suggested the company is beyond the worst of inventory issues that walloped profits in the second quarter. I am not surprised to see Jefferies out upgrading the stock on Tuesday in the wake of Cornell’s comments. The Jefferies analyst making the call — Corey Tarlowe — chatted with Yahoo Finance Live on his team’s new call. I don’t think other retailers have moved beyond their inventory gluts, so navigate this space with care.
Chipotle (CMG) CEO Brian Niccol told Brooke DiPalma and yours truly he is eyeing the potential impact from proposed changes to California’s minimum wage to $22 an hour. The company operates 15% of its 3,000 locations in California. In my humble view, the long-term inflationary outlook for wages in the fast-food sector is no way priced into today’s valuations. Food for thought as you do your valuation analysis.
Hilton (HLT) CEO Chris Nassetta told Brad Smith and yours truly the travel rebound continues — something we have seen elsewhere, notably in the positive airline earnings announcements this month from Delta (DAL). If the economy is tanking into a recession, we aren’t seeing it in services like hotel stays.
Paramount (PARA) CEO Bob Bakish struck an upbeat tone on the outlook for streaming in a chat with Yahoo Finance’s Alexandra Canal. It’s interesting to see streamer FuboTV (FUBO) come out with a positive earnings pre-announcement on Tuesday following that chat. It might be time to re-crunch the numbers on Roku (ROKU) into its earnings report.
And in an interview with Yahoo Finance Editor-in-Chief Andy Serwer, General Motors (GM) CEO Mary Barra sure sounded like a person on a mission to deliver an EV future and challenge Tesla (TSLA). Bottom line: Tesla will not own the EV market the next five years as it has owned the last five. Feel free to tweet me some hate on this view.
Now go forth and conquer. And remember, stocks do go up in bear markets.
What to Watch Today
Economy
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7:00 am ET: MBA Mortgage Applications, week ended Oct. 14 (-2.0% during prior week)
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8:30 am ET: Housing StartsSeptember (1,462 million expected, 1,575 during prior month)
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8:30 am ET: Building PermitsSeptember (1,530 million expected, 1,517 million during prior month, revised to 1,542 million)
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8:30 am ET: Housing Startsmonth-over-month, September (-7.1% expected, -12.2% during prior month)
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8:30 am ET: Building Permitsmonth-over-month, September (-0.8% expected, -10.0% during prior month, revised to -8.5%)
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2:00 am ET: US Federal Reserve Releases Beige Book
Earnings
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Tesla (TSLA), Abbott Labs (ABT), Baker Hughes (BKR), Comemerica (CMA), Equifax (EFX), IBM (IBM), Las Vegas Sands (LVS), Procter & Gamble (PG), Steel Dynamics (STLD), Travelers (TRV), Winnebago (WGO)
Yahoo Finance Highlights
Nouriel Roubini: ‘We’re headed towards disaster’ if we ignore these risks
Chipotle stock deemed ‘one of the most compelling’ in the industry by Goldman Sachs
Paramount CEO Bob Bakish: ‘Streaming pricing is going to go up’
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