My top 10 things to watch Tuesday, May 2
1. DuPont (DD) delivers a first-quarter earnings beat Tuesday, with adjusted earnings-per-share (EPS) of 84 cents, compared with analysts’ forecasts of 80 cents per share. But the materials giant cut its full-year revenue forecast, sending shares nearly 5% lower in premarket trading. DuPont also says it’s agreed to buy Spectrum Plastics Group from AEA Investors for $1.75 billion, in a deal that should be immediately accretive.
2. Club holding Morgan Stanley (MS) is planning to cut 3,000 jobs in the bank’s second round of layoffs in six months, Reuters reported Monday.
3. Tesla (TSLA) raises prices on some models of its electric vehicles in the U.S., China, Japan and Canada. The news come after several rounds of price cuts earlier this year.
4. Citi calls SoFi Technologies‘ (SOFI) post-earnings sell-off “unwarranted,” while reiterating a buy rating and $10-per-share price target. Meanwhile, Wedbush downgrades SOFI to neutral from outperform and lowers its price target to $5 per share, from $8.
5. TD Cowen raises its price target on health insurer Humana (HUM) to $616 per share, from $581, while reiterating an outperform rating. The Club holding last week delivered a first-quarter earnings beat and raised its guidance.
6. Uber Technologies (UBER) reports a first-quarter revenue beat of $8.82 billion, ahead of analysts’ forecasts for $8.72 billion, sending the stock soaring by nearly 10% in premarket trading. The company reports an EPS loss of 8 cents, compared with expectations for a 9 cent-per-share loss, while guiding for gross bookings of $33 billion to $34 billion in the second quarter.
7. BP reports stronger-than-expected first-quarter profits on Tuesday, with its underlying replacement cost profit coming in at $4.96 billion on the back of strong oil-and-gas trading. The British oil major expects to deliver share buybacks totaling $4 billion for the year, at the lower end of its capital expenditure range of $14 billion to $18 billion. Shares of BP were down roughly 5% in premarket trading.
8. Morgan Stanley raises its price target on Exxon Mobil (XOM) to $122 per share, from $118, while reiterating an overweight rating on the stock. The bank cites the U.S. oil major’s record first-quarter profit, which it reported last Friday.
9. Bank of America raises its price target on Brinker International (EAT) to $33 per share, from $29, reflecting a higher market multiple. But the firm maintains its underperform, or sell, rating on EAT stock.
10. The CEO of International Business Machines Corp. (IBM), Arvind Krishna, said the company plans to pause hiring for back-office roles that could be replaced by artificial intelligence (AI) in the coming years. “I could easily see 30% [roughly 7,800 jobs] of that getting replaced by AI and automation over a five-year period,” Krishna told Bloomberg.
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