CEO Sightings

Stocks Slip, Earnings Outlook Brightens, and IPO Buzz Grows

By:JJ Kinahan

Instacart's IPO Plans and Hostess Merger Talk Stir Market Speculation

  • Stocks dip, but optimism grows with higher earnings forecasts and Tesla's robust performance.
  • Instacart eyes an IPO, merger rumors circulate and the market awaits key economic reports and auto industry labor dispute.
  • Low volatility suggests calm; a moment of reflection for 9/11 anniversary

In this weekly market update, we'll delve into the recent stock market performance, upcoming economic indicators, corporate news, and a moment of remembrance.

Last week saw a dip in the stock market, with the S&P 500 dropping 1.3% and the Nasdaq Composite slipping 1.9%. However, the week ended on a slightly positive note as both indices posted modest gains on Friday, breaking a three-day losing streak for the S&P and a four-day slide for the Nasdaq. Notably, this came despite significant losses from Apple and Nvidia, both of which tumbled by 6%.

Forecasts: 0.5% increase in earnings

Analysts are revising their expectations for the third-quarter earnings season, with forecasts now anticipating a 0.5% increase in earnings. This positive outlook is welcome news for market fundamentalists who have been closely monitoring the market's price-to-earnings multiple, currently at 18.7, slightly above its 10-year average of 17.7. Adding to the optimism, Morgan Stanley upgraded Tesla (TSLA) to an overweight rating, setting a price target of $400. In premarket trading, Tesla shares surged by 6%.

Instacart, the grocery delivery giant, is eyeing a possible initial public offering (IPO), potentially as early as next week. Despite its previous valuation of $39 billion, the company is now targeting a valuation range of $8.6 to $9.3 billion. While this reflects a significant drop in valuation, it marks a noteworthy development in the IPO market. In related merger news, J.M. Smucker (SJM) is said to be in talks to acquire Hostess Brands (TWNK), the maker of Twinkies, in a deal valued around $4 billion, sparking curiosity about the potential for grape jelly-filled Twinkies.

This week promises important economic reports. On Wednesday, the latest consumer price index (CPI) will be released, with forecasts anticipating a 0.5% month-over-month increase and a 0.2% year-over-year rise. Additionally, Thursday will see the release of both the producer price index (PPI) and retail sales reports. PPI is expected to show a 0.4% month-over-month increase, while retail sales are forecasted to have risen by 0.2%.

Auto strike is possible

The strong economy juxtaposed with a slowdown in inflation faces a potential challenge this week as the United Auto Workers threaten to strike as early as Friday when their current contract expires. A strike involving 146 thousand workers from Ford (F). General Motors (GM), and Stellantis (STLA) could halt the auto industry, which accounts for about 3% of the U.S. GDP. Such a strike could have significant repercussions for Michigan's economy, as reported by Bloomberg.

For today, there isn't a significant economic agenda. However, Oracle (ORCL) is set to report earnings after the close, and investors will be keen to see their forward-looking guidance. In premarket trading, the S&P 500 showed a 0.5% gain, while volatility dipped by nearly 1.5%. It's intriguing that despite last week's market downturn, volatility remains low at around 14, signaling that markets may not be overly concerned at this moment.

We remember 9/11

In closing, it's essential to take a moment to remember the tragic events of Sept. 11, 2001, when nearly 3,000 lives were lost in a devastating attack on American soil. We will never forget the impact of that fateful day.

JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.