Landon Capital

After a rather lackluster quarter, Wall Street is rallying around some promising signs that have them shouting, “The worst is over!” And it seems like investors are buying into the hype.

Bank executives are the cheerleaders of this newfound hope, spotting these elusive “green shoots” in deal-making and trading. While the numbers may not have been all rainbows and sunshine, they’re pointing to positive shifts that are getting everyone excited.

Morgan Stanley’s CFO, Sharon Yeshaya, has been planting seeds of optimism, proclaiming that “sentiment and activity improved towards the end of the quarter, evidenced by green shoots that emerged across our businesses.”

Not to be outdone, Citigroup’s CFO, Mark Mason, is cultivating hope in the issuance of debt, as clients start to gain more conviction about the direction of interest rates. He confidently stated, “we are seeing green shoots” in this space.

And let’s not forget the ever-optimistic Goldman Sachs CEO, David Solomon, who enthusiastically reported, “June was certainly better” than earlier in the quarter, and he’s witnessing a surge in “risk-on sentiment” in July.

With these green shoots sprouting all over Wall Street, it seems like the financial world is embracing the idea that brighter days are ahead. So, hold on tight, folks, because it looks like the bulls are coming back to town!

Netflix, Tesla, IBM fall premarket; Johnson & Johnson, DR Horton rise

U.S. futures traded in a mixed fashion Thursday, as investors digested a deluge of corporate earnings, with the tech sector in particular focus.

Here are some of the biggest premarket U.S. stock movers today:

  • Netflix (NASDAQ:NFLX) stock fell 6.4% after the streaming giant’s quarterly revenue and forecast fell short of estimates, even after it reported nearly 6 million subscriber additions.
  • Tesla (NASDAQ:TSLA) stock fell 3.6% after CEO Elon Musk revealed plans to continue price cuts, squeezing future margins, which outweighed the EV manufacturer comfortably beating second-quarter profit forecasts.
  • IBM (NYSE:IBM) stock fell 0.9% after the tech giant’s second-quarter revenue fell short of expectations, bogged down by a decline in sales of its mainframe computers as businesses cut tech spending.
  • Johnson & Johnson (NYSE:JNJ) stock rose 1.4% after the pharmaceutical company beat second-quarter earnings expectations and lifted its 2023 profit forecast as it builds out its drug and medical devices pipeline.
  • AB InBev ADRs (NYSE:BUD) rose 0.6% after Morgan Stanley upgraded its stance on the brewer to ‘overweight’ from ‘neutral’, saying it is now attractively valued after the Bud Light controversy.
  • Taiwan Semiconductor Manufacturing (NYSE:TSM) stock fell 3.5% after the Taiwanese chipmaker forecast a drop of around 10% in 2023 sales and flagged investment spending at the low end of estimates.
  • American Airlines (NASDAQ:AAL) stock fell 1.3% despite the carrier raising its annual forecast for adjusted profit despite fears of a looming economic slowdown.
  • Philip Morris (NYSE:PM) stock rose 0.1% after the tobacco giant impressed with its quarterly profit, boosted by a let-up in soaring tobacco and labor costs and buoyant demand for its Zyn and IQOS products.
  • Blackstone (NYSE:BX) stock fell 3.2% after the asset manager said its second-quarter distributable earnings slumped nearly 40%, owing to a sharp drop in asset sales.
  • DR Horton (NYSE:DHI) stock rose 3.8% after the home builder raised its forecast for full-year revenue, benefiting from strong demand and easing shortages of labor and construction supplies.
  • Abbott Laboratories (NYSE:ABT) stock rose 0.7% after the medical devices manufacturer beat expectations for second-quarter profit, due to recovery in surgical procedure volumes and demand for its diabetes care devices.


Some of the biggest movers:

In a bold move, RBC Capital downgrades Carvana Co. (NYSE:CVNA) from Sector Perform to Underperform, causing quite a stir on Wall Street. Analysts seem to be on a rollercoaster ride, raising the firm’s price target to $30 from a meager $9 per share.

Why the sudden change of heart? Well, it seems that Carvana’s second-quarter results, along with some fancy debt restructuring and newfound access to equity capital, have managed to keep liquidity risks at bay, prompting some to label it as “a big positive for the stock.”

But alas, it’s not all champagne and roses for Carvana. RBC Capital, staying true to fundamentals, rains on the parade as they argue that the market may have gone a bit overboard in appreciating the company’s long-term margin improvements.

Oh, Carvana, you were once the darling of investors, but now you must face the music as you fall from grace, leaving many wondering if this downgrade is just the beginning of a rough road ahead. Buckle up, folks, as the thrill ride continues!

Stock Analysis

Citizens & Northern Corporation, the underdog bank holding company for Citizens & Northern Bank, is here to take on the financial Goliaths! Armed with a range of banking and mortgage services for both individuals and corporate customers, this feisty player is not to be underestimated.

With a jaw-dropping USD 2.5 billion in assets spread across 37 locations, CZNC is making its mark in the financial arena. But wait, there’s more! Let’s size up the competition, shall we?

In one corner, we have ACNB Corporation (Nasdaq:ACNB) and in the other, Farmers National Banc Corp. (Nasdaq:FMNB). While both ACNB and FMNB boast market capitalizations nearing the impressive $600 million mark, CZNC is modestly hanging out with a cap less than $350 million. But don’t let that fool you!

Citizens & Northern Corporation shows off its impressive yield, making its rivals green with envy. Their 5% return on yield is where the real value lies. So, watch out, financial giants, there’s a new player in town, and CZNC is ready to show the world that size doesn’t always matter when it comes to making a big impact!

Ready to conquer the rollercoaster ride of the financial markets? Buckle up and invest smart with a little guidance from the pros.

Remember, investing is like walking through a maze – full of twists, turns, and the occasional dead end. But fear not, with the right guidance, you’ll navigate those murky waters like a pro sailor.

Embrace the wisdom of seasoned investors, keep a keen eye on trends, and don’t forget to sprinkle some gut instinct into the mix. So, whether you’re hunting for hidden gems or avoiding those sly market traps, let guidance be your trusty co-pilot on this exhilarating adventure. Get ready to outwit, outplay, and outsmart your way to financial success