Weekly Newsletter
Our goal is to always keep our clients involved and informed to what is going on in the markets. To that end, we produce a weekly newsletter to ensure there is a quick read on the big picture (macro economic) and company specific (micro economic) events that affected the markets the last week.
Our goal is to always keep our clients involved and informed to what is going on in the markets. To that end, we produce a weekly newsletter to ensure there is a quick read on the big picture (macro economic) and company specific (micro economic) events that affected the markets the last week.
Listed below are the recent archives of the newsletter that is sent out to clients each week.
Palacios Perspectives 02.25.2023
Palacios Perspectives 02.17.2023
Palacios Perspectives 02.10.2023
Palacios Perspectives 02.03.2023
Current Newsletter
From Wall Street to Main Street
Highlights from the past week
Market / Macro Economic Summary
Broad markets traded lower this week as the markets reacted to a Fed-favored gauge of inflation that came in hotter-than-expected. PCE and Core PCE Price Indexes rose more than anticipated, while personal income increased less than expected, and spending jumped. We had seen inflation-related data trending lower so far in 2023 but these reading bucked the trend. This is particularly concerning since it makes the Federal Reserve consider more rate hikes to ensure they slow the economy down and thereby lowering inflation. Let’s hope this reading was an anomaly and we revert back towards numbers that reaffirm a lower trend.
Company Specific / Macro Economic Summary
Walmart (WMT)
Shares traded slightly higher as the nation’s number one retailer reported a stronger fourth quarter than expected. Earnings per share of $1.71 were well above the expectations of $1.51. Revenues of $164.05 billion were also higher than the $159.72 billion Wall Street was looking for. Same store sales grew by 8.3% excluding fuel. E-commerce sales also grew by 17% from last year. The reason it wasn’t up more is that management gave a less than favorable forecast for the remainder of 2023.
Nvidia (NVDA)
Shares rose over 14% as the company reported a top and bottom-line beat. Earnings per share of 88 cents were ahead of the calls for 81 cents. Revenue of $6.05 billion was also higher than the $6 billion Wall Street was looking for. CEO Jensen Huang called the AI revolution being discussed with the popularity of ChatGPT as potentially another “iPhone moment” for the company. Sales of its AI chips grew by 11%.
Warner Brothers Discovery (WBD)
Shares traded lower as the company reported a Q4 loss of $0.86 per share ex-items, well below the $0.21 shortfall expected by analysts, on revenues of $11.01 billion, compared to the $11.36 billion estimate. The results come in the wake of company executives warning last summer of a deteriorating advertising market that have weighed on earnings. The downward trend in advertising was exacerbated by a decline in audience, according to the company’s CFO. The mass media and entertainment conglomerate also cited a “very challenging” macroeconomic environment but felt that things will get better in the second half of the year.
Palo Alto Networks (PANW)
Shares rose 7% as the company reported a top and bottom-line beat. Revenues rose 26% to $1.66 billion and were better than the calls for $1.66 billion. Earnings per share of $1.05 were also higher than the estimates for 78 cents. CEO Nikesh Arora emphasized the company’s desire to increase margin expectations as he will try to get the firm to permanent profitability basis.
Parting Thoughts
We welcome an opportunity to discuss the above detail and wish you much success in the rest of your week!
Kind Regards!
E.Palacios
Erick J. Palacios, MBA
