Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print
Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Is there a golden opportunity with Shopify?
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print

Account
New to ADSS? Open an
account now to get started.
Open an account Login

News

Walgreens shares plunge despite upbeat Q1

 

Friday, January 06, 2023

The news shaping the markets today

US is expected to send military aid worth approximately $3 billion, including dozens of Bradley vehicles, to help Ukraine in its conflict with Russia. The news sent the US dollar index higher this morning.


Japan’s Jibun Bank composite PMI fell to 49.7 in December, versus a flash reading of 50.0. The latest reading signalled the second consecutive month of contraction in private sector activity, exerting pressure on the JPY/USD forex pair.


Argentina’s industrial production climbed by 1.4% year-over-year in November, versus 3.6% growth in the previous month. However, the ARS/USD pair remained broadly flat in forex trading this morning.


US crude oil stockpiles rose by 1.694 million barrels in the week ended December 30, above the consensus expectations of a 1.154 million rise, according to the Energy Information Administration report. Despite this, WTI crude oil futures traded higher.


The Philippines reported a decline in its unemployment rate to 4.2% in November, from 6.5% in the year-ago month. The country’s unemployment rate hitting a fresh low sent the PHP/USD pair higher in forex trading this morning.

 

What’s happening: Shares of Walgreens Boots Alliance fell on Thursday after the company released results for its first quarter.

What happened: Walgreens reported better-than-expected earnings for its first quarter on Thursday.

Although the pharmacy chain boosted its full-year sales expectations, it recorded a major charge related to opioid settlements.

How were the results: The Deerfield, Illinois-based company reported a net loss for the quarter ended November 30.

  • Sales slipped 1.5% year-over-year to $33.4 billion, but gained 1.1% on a constant currency basis, exceeding the consensus estimates of $32.83 billion.
  • Net loss came in at $3.72 billion, versus a year-ago profit of $3.58 billion.
  • Adjusted earnings contracted by 29.9% on a constant currency basis to $1.16 per share, exceeding Wall Street expectations of $1.13 per share.

Why it matters: Walgreens is facing several headwinds, including the settlement of opioid-related cases, which cost the company $6.5 billion.

The company recorded an operating loss of $6.2 billion versus a year-ago operating income of $1.3 billion. Operating loss for the quarter included a pre-tax charge of $6.5 billion for opioid-related claims and litigation.

The company’s international segment recorded sales of $5.2 billion, down 11% year-over-year, but was able to beat the consensus estimates of $5.17 billion. However, its newly formed healthcare segment reported revenues of $989 million, which missed market views.

Walgreens administered 8.4 million covid-19 vaccinations during the quarter, down sharply from approximately 15.6 million in the year-ago period, but higher than the 2.9 million doses administered in the previous quarter.

Management boosted their fiscal 2023 sales forecast from $130.5-$134 billion to $133.5-$137.5 billion, following the acquisition of Summit Health. However, they maintained their adjusted earnings guidance at $4.45-$4.65 per share.

“We’re not considering any M&A type activity in the short term. We’re taking a pause. We need to focus on integration activities,” CFO James Kehoe said during the earnings call.

Walgreens also became the first major pharmacy chain to announce that it is looking to dispense the abortion pill under the FDA’s new rules.

How shares responded: Shares of Walgreens fell 6.1% to close at $35.19 on Thursday, following the release of quarterly results. The stock had dipped around 7% over the past six months.

What to watch: Investors will keep an eye on the spread of covid-19 infections, which could boost demand for vaccines.

The markets today

The Canadian dollar will be in focus today ahead of the jobs report

Context: The CAD/USD forex pair fell on Thursday, following the release of economic data from Canada.

Details: Canada recorded a trade deficit of C$41 million for November, following a surplus of C$130 million in the previous month. The country’s imports contracted by 2.1% to a six-month low in November, while exports declined 2.3% to an eight-month low.

Strength in the US dollar also exerted pressure on the CAD/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major currencies, gained around 0.8% to reach 105.04 on Thursday.

A rise in the price of crude oil, one of Canada’s major exports, failed to provide support to the loonie. WTI crude oil for February delivery gained 83 cents to close at $73.67 per barrel on Thursday, after recording sharp declines during the prior two session.

The CAD/USD forex pair fell around 0.7% to 1.3570 on Thursday, after surging to its highest intraday level since December 5 of 1.3467.

What are expectations: Traders await the release of jobs data from Canada, which is expected to provide some clues on the country’s interest rate outlook. The Bank of Canada is widely expected to raise its benchmark interest rate by 25 basis points at its upcoming policy meeting on January 25.

The Canadian economy, which added 10,100 jobs in November, is expected to add 8,000 jobs in December. Analysts expect the unemployment rate to rise to 5.2% in December, from 5.1% in November, while average hourly earnings are projected to grow 5.3% year-over-year.

The release of nonfarm payrolls data from the US will also remain in focus, with the country expected to add 220,000 jobs in December, following 263,000 job adds in the previous month.

Other Markets: European trading indices closed mostly lower on Thursday, with the DAX 40, CAC 40 and STOXX Europe 600 down by 0.38%, 0.22% and 0.20%, respectively, and the FTSE 100 up by 0.64%.

Support & resistances for today

Technical Levels News Sentiment
USD/JPY  – 133.69 and 133.92 Positive
USD/CHF – 0.9355 and 0.9365 Positive
Gold – 1843.09 and 1845.89 Positive
Palladium   – 1755.18 and 1764.93 Positive
S&P 500 – 3804.60 and 3818.74 Positive

Market snapshot

Futures at 0400 (GMT)
EUR/USD (1.0537, 0.13%) Dow ($33,197, 0.38%) Brent ($79.64, 1.2%)
GBP/USD (1.1935, 0.20%) S&P500 ($3,846, 0.44%) WTI ($74.59, 1.3%)
USD/JPY (133.79, 0.29%) Nasdaq ($10,872, 0.48%) Gold ($1,844, 0.2%)

What else to watch today

Germany’s factory orders and retail sales, UK’s house price index and construction PMI, France’s household consumption, foreign exchange reserves and retail sales, South Africa’s manufacturing PMI, Eurozone’s consumer price inflation, retail sales, economic sentiment indicator, industry confidence indicator, selling price expectations, services confidence indicator, consumer confidence indicator, consumer confidence price trends and consumer price index, India’s foreign exchange reserves, and fiscal year GDP growth, Mexico’s auto exports and car production, Brazil’s auto industry production and auto sales, US unemployment rate, average hourly earnings, ISM services PMI, factory orders, Baker Hughes crude oil rigs and total vehicle sales, as well as Argentina’s interest rate decision.


Site by Pink Green
© ADSS 2023


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.