Markets Unwind China, Oil Prices; UAL, IBKR, JBHT Report Q3

Barchart · 10/15 18:02

Tuesday, October 15th, 2024

It was a trading day that flushed out some of the extreme positivity following Monday’s close with the Dow and S&P 500 at new all-time highs. An unwinding of Chinese stock valuations as questions remain about fiscal stimulus plans going forward — JD JD sank -9% and Alibaba BABA was down -5.5% — met up with a notable drop in spot oil prices — ExxonMobil XOM -3%, Chevron CVX -2.7%.

Overall, markets were down today: the Dow slipped -324 points, -0.75%, and the S&P was down -44, -0.76%. The Nasdaq was today’s biggest loser, -187 points or -1.01%, while the small-cap Russell 2000 gained +0.16% on the session.

Q3 Earnings After the Bell: UAL, IBKR, JBHT

United Airlines UAL logged its ninth-straight positive earnings surprise this afternoon, posting earnings of $3.33 per share outpacing the $3.10 in the Zacks consensus. Revenues in the quarter of $14.84 billion took out the expected $14.76 billion, with RevPAR during the quarter turning toward the positive (closing the 3-month period at -1.6%) and next-quarter earnings estimates in-line with current expectations.

United will also be buying back $1.5 billion in UAL stock, helping shares higher in late trading and adding to its +70% growth since early August. Perhaps most amazingly, United still only trades at 7x forward earnings. Shares are +57% year to date.

Interactive Brokers IBKR just met bottom-line expectations at $1.75 per share reported for its Q3 after the closing bell. Revenues of $1.37 billion outperformed the $1.32 billion in the Zacks consensus. Customer accounts grew +28% in the quarter while Net Interest Income (NII) was +9%, though at +80% gains year to date, shares are selling off -4% in after-market trading.

Trucking and logistics major J.B. Hunt JBHT broke its seven-straight quarters of earnings misses today, posting a seven-cent beat on its bottom line to earnings of $1.49 per share, while revenues narrowly outpaced expectations to $3.07 billion in the quarter. Its largest segment, Intermodal, grew +5% in the quarter, and the company’s +6.6% growth in late trading takes a big bite out of its -10% sell-off year to date.

What to Expect Wednesday in the Stock Market

Check out the updated Zacks Earnings Calendar here.

Aside from a new monthly Import/Export report due ahead of tomorrow’s open, we’ll also see earnings numbers from Abbott Labs ABT and US Bancorp USB in the morning and CSX CSX and Las Vegas Sands LVS Wednesday afternoon. The biggest remaining earnings report this week, Netflix NFLX, comes out Thursday after the close.

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