NEWS
All Eyes On “Mag 7” Earnings

It’s a busy week of earnings, with 48% of the S&P 500’s companies reporting results and setting the tone for the market through the end of the year. In addition to earnings, labor market data will also give investors an update on the U.S. economy ahead of next week’s Fed meeting and rate decision. It’s a lot to digest. 👀

Today's issue covers  Ford’s forecast failing to deliver, a small-cap AI stock’s breakout, SoFi’s earnings setup, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 9 of 11 sectors closed green, with financials (+1.24%) leading and energy (-0.63%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $AMIX, $GLUE, $GNLN, $EVOK, $PRCH 📉 $ISPO, $DG, $SLXN, $NEM, $ICLR*

*If you’re a business and want to access this data via our API, email us.

EARNINGS
Ford’s Forecast Fails To Impress 😐️ 

Those hoping Ford’s latest earnings result would put the stock back on the right track will have to wait another quarter, as the automaker failed to deliver again. 📊 

Adjusted earnings per share of $0.49 topped expectations by $0.02, with automotive revenue of $43.07 billion also topping the $41.88 billion expected.

Still, the company guided to the low end of its previously announced 2024 earnings forecast, expecting an EBIT of about $10 billion. It maintained its forecast for adjusted free cash flow of $7.5 to $8.5 billion but left analysts concerned about softening demand, rising vehicle inventories, and inability to achieve its $2 billion in cost cuts. 🔻 

Higher inflationary and warranty costs have offset improvements in material, freight, and manufacturing costs…preventing the company from achieving the “record year” it anticipated.

On a positive note, the company’s “Pro” commercial and fleet business, as well as its “Ford Blue” operations showed strength and offset the $1.22 billion in “Model e” electric vehicle losses. Like other automakers, the company still sees an EV future, but has pulled back investments to focus on its hybrid models.

Despite the stock’s lackluster returns over the last year and today’s business update failing to impress Wall Street, Main Street is seemingly sticking with the stock. Stocktwits sentiment remains in ‘bullish’ territory after hours. 🐂 

Wall Street loads up on surprising $2.1tn asset class

Bank of America. UBS. JP Morgan. They’re all building (or have already built) massive investments in one $2.1tn asset class—and it’s not what you think. It’s not private equity or real estate, but fine art. Why?

In partnership with Masterworks, data from Citi shows it’s a potent diversifier with low correlation, and certain segments have even outpaced traditional investments. Take blue-chip contemporary art, which has outpaced the S&P 500 by 64% (1995-2023).

Masterworks knows the power of art investing, with their platform giving 900k+ users the opportunity to invest in this asset class as part of their overall portfolio strategy. In fact, from their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5%* (among assets held for longer than one year).

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Past performance not indicative of future returns. Investing Involves Risk. See Important Disclosures at masterworks.com/cd.