📉 Worst S&P 500 Stocks This Year

1) JPMorgan Falls On Earnings 2) BlackRock’s AUM Hits New Record, 3) Worst S&P 500 Stocks This Year and more!

It’s Wednesday!

As earnings season picks up, I’ll be back to sending the newsletter out 2x per week to catch you up to speed on everything you need to know.

If there are any specific companies you’d like me to cover in future issues, feel free to let me know using the feedback poll at the bottom!

Some key data bites from this week that you should know: 

In today’s newsletter:

  • 🏦 JPMorgan Falls On Earnings

  • 💰 BlackRock’s AUM Hits New Record

  • 📉 Worst S&P 500 Stocks This Year

Let’s dive right in!

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When JPMorgan reports earnings, everyone listens.

Last Friday, the largest bank in the U.S., reported its fiscal first-quarter earnings for 2024, surpassing analyst expectations on both revenue and earnings.

Here’s a rundown of the numbers:

  • Earnings: $4.44 (vs. $4.17 Est. from FactSet)

  • Revenue: $41.9 billion (vs. $41.67B Est. from FactSet)

The bank saw growth across nearly all business segments, with quarterly profits rising 6% to $13.4B, and net interest income increasing 11.4% YoY to $23.1B.

However, there was a slight QoQ drop in net interest income of roughly 4%, ending a 10-quarter streak of increases.

Looking ahead, JPMorgan projects net interest income for 2024 to be around $90B, slightly below the $90.68B analysts anticipated.

CEO Jamie Dimon expressed caution, citing global conflicts, persistent inflation, and the yet-to-be-felt impacts of quantitative tightening as reasons for vigilance.

Despite the well-rounded results, the market reacted negatively, with the stock dropping about 8% since the earnings announcement.

BlackRock now has a whopping $10.5T in assets under management, a new record.

This marks a considerable 15% increase from $9.1T in the first quarter of 2023.

The company released its earnings for Q1 2024 last Friday and beat analyst estimates.

Here’s a rundown of the numbers:

  • Earnings: $9.81 (vs. $9.37 Est.)

  • Revenue: $4.7B (vs. $4.67B Est.)

Overall, the quarter was robust for BlackRock, with $76B in long-term net inflows.

The company also reported an 11% YoY increase in revenue and an 18% YoY increase in operating income.

A notable highlight from the earnings call was the BlackRock Bitcoin Spot ETF, IBIT, which attracted $14B in net inflows during the quarter.

Larry Fink, BlackRock’s CEO, said the Bitcoin fund was the fastest growing ETF in history and is approaching nearly $20B in AUM.

These stocks are having a tough time.

While the broader S&P 500 has had a choppy last few weeks due to geopolitical issues and greater than expected inflation, these companies face problems that extend beyond this.

Globe Life recently fell over 60% before slightly rebounding after Fuzzy Panda Research released a short seller report outlining allegations of insurance fraud.

Boeing is second on the list, and well, there’s no need to go into detail there.

CEO Dave Calhoun recently announced his resignation, but will continue to lead the company until the end of the year.

Meanwhile at Tesla, I previously reported on the company’s 8.5% YoY drop in Q1 deliveries.

This week, the company revealed plans to cut more than 10% of its global workforce.

Additionally, data released from Kelley Blue Book showed Tesla’s EV market share has declined from 62% in Q1 2023 to 51% in Q1 2024.

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✂️ No Cuts In Sight. Powell remains hawkish on rate cuts expectations - WSJ

🏥 Medical Device Sales Jump. Johnson & Johnson $JNJ beat earnings thanks to its medical devices business - CNBC

💳 Debt Burden. Credit card delinquencies have reached all time highs - M

😱 Recession Fears. 29% of economists surveyed by WSJ expect a recession within the next year - WSJ

☁️ Cloud M&A. Salesforce $CRM is in talks to acquire $10B Informatica $INFA - CNBC

📱India Expansion. Apple $AAPL is now generating $14B in devices from its India production line - YF

Notable Companies Reporting Earnings Next Week:

  • Monday (4/15):

    • Goldman Sachs $GS, M&T Bank $MTB

  • Tuesday (4/16):

    • UnitedHealth Group $UNH, Johnson & Johnson $JNJ, Bank of America $BAC, Morgan Stanley $MS, PNC Financial Services $PNC, The Bank of New York Mellon $BK

  • Wednesday (4/17):

    • ASML Holding $ASML, Abbott Laboratories $ABT, Prologis $PLD, U.S. Bancorp $USB, Crown Castle $CCI

  • Thursday (4/18):

    • Taiwan Semiconductor $TSM, Netflix $NFLX, Intuitive Surgical $ISRG, Blackstone $BX

  • Friday (4/19):

    • Procter & Gamble $PG, American Express $AXP, Schlumberger $SLB

All of the companies that are reporting earnings next week can be viewed here.

Major Trades Published 04/08 - 04/16

Buys

  • TKO Group ($TKO)

    • Insider: Ariel Emanuel (CEO)

      • # of Shares Purchased: 1,642,970

      • $ Amount: $146,240,760

      • SEC Forms: [1]

  • Science Applications International ($SAIC)

    • Insider: Toni Townes-Whitley (CEO)

      • # of Shares Purchased: 3,000

      • $ Amount: $377,894

      • SEC Forms: [1]

Sells

  • Ares Management ($ARES)

    • Insider: Antony Ressler (Co-Founder & Executive Chairman)

      • # of Shares Sold: 816,302

      • $ Amount: $109,210,207

      • SEC Forms: [1], [2]

  • MicroStrategy ($MSTR)

    • Insider: Michael Saylor (Executive Chairman)

      • # of Shares Sold: 30,000

      • $ Amount: $44,289,493

      • SEC Forms: [1], [2], [3], [4], [5], [6], [7], [8], [9]

  • JPMorgan ($JPM)

    • Insider: James Dimon (Chairman & CEO)

      • # of Shares Sold: 178,222

      • $ Amount: $32,824,625

      • SEC Forms: [1]

  • FedEx ($FDX)

    • Insider: Frederick Smith (Executive Chairman)

      • # of Shares Sold: 113,400

      • $ Amount: $31,105,700

      • SEC Forms: [1]

  • Apple ($AAPL)

    • Insider: Jeffrey Williams (COO)

      • # of Shares Sold: 59,162

      • $ Amount: $10,188,880

      • SEC Forms: [1]

    • Insider: Luca Maestri (Senior Vice President, CFO)

      • # of Shares Sold: 53,194

      • $ Amount: $9,261,933

      • SEC Forms: [1]

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