NYSE Content Advisory: Pre-Market update + Wall Street readies for big bank earnings
Caroline Woods delivers the pre-market update on July 16th
Stocks are pointing to a weaker open Wednesday morning as investors digest a second batch of big bank earnings and await another read on inflation.
NYSE-listed Bank of America, Goldman Sachs, and Morgan Stanley headline this morning's earnings activity. This follows results on Tuesday from NYSE-listed J.P. Morgan Chase, Wells Fargo and Citigroup.
Wall Street is tracking new inflation data. This comes after the Bureau of Labor Statistics said Tuesday that consumer prices rose in-line with economists' expectations in June, increasing by 2.7% year-over-year.
Opening Bell
Colony Bankcorp (NYSE: CBAN) celebrates its 50 th anniversary and listing transfer
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
4 hours ago
- Globe and Mail
Prediction: 3 Stocks That Will Be Worth More Than Palantir 5 Years From Now
Key Points Palantir's stock price has risen much faster than its business has grown. ASML, Salesforce, and IBM all have strong investments in AI. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) experienced a significant rise over the past few years and is now the 24th largest company by market capitalization globally. However, through a combination of factors, I think there could be multiple stocks that pass Palantir over the coming years. Three that I think have that chance are ASML Holding (NASDAQ: ASML), International Business Machines (NYSE: IBM), and Salesforce (NYSE: CRM), but this list could grow if the market comes to its senses regarding Palantir's stock. Palantir's stock appears to be significantly overvalued Palantir has been on an absolute tear since the start of 2024, rising nearly 800%. However, its revenue only grew 39% year over year in the first quarter, indicating a significant disparity between stock price appreciation and actual business growth. This shows up in the stock's valuation, which trades for 113 times sales and 244 times forward earnings. PLTR PS Ratio data by YCharts; PS = price to sales, PE = price to earnings. Very few companies ever reach this valuation for good reason: It's nearly impossible to live up to expectations. If we use a five-year timeline to examine Palantir's stock, let's make the following assumptions: Revenue growth of 40%. Profit margin reaches 30%. Share count remains flat. Those are three incredibly bullish assumptions -- the company hasn't achieved 40% year-over-year growth in recent quarters and would have to sustain that for five years. Also, a 30% profit margin would place it among the best software companies, and its current 18% margin is still a considerable distance from that level. Lastly, management is notorious for issuing a large number of shares to employees, and its share count has increased by 7.3% since the start of 2024, indicating significant dilution. Regardless, if these heady assumptions could come true, Palantir would generate $16.8 billion in revenue and $5 billion in profits. That's huge growth from today's $3.1 billion in revenue, but it would still value the company at 67 times hypothetical 2030 earnings. A 67 multiple for forward earnings makes for a very expensive stock, and Nvidia, which is consistently growing faster than Palantir, has only a 38 forward earnings multiple right now. I think this is a fairly clear-cut case that Palantir is drastically overvalued at today's levels. Even with the most bullish assumptions, Palantir's stock would still appear overvalued five years from now, even if the company achieves incredible growth figures. As a result, I believe the stock is ripe for a decline, and there are many other stocks (beyond the ones I mentioned) that could surpass Palantir. This trio has a strong outlook and significantly cheaper prices ASML is only slightly behind Palantir's $362 billion market cap, with a valuation of $292 billion at the time of this writing. It is a key provider of machinery in chip manufacturing, and it holds a technological monopoly with its extreme ultraviolet (EUV) machines. As more chip fabrication facilities emerge to support the huge AI demand, the company will experience strong growth, which management has told investors to expect in 2026. As a result, I think ASML could easily surpass Palantir. IBM is a legacy computing business that's working to make the pivot into AI and quantum computing, which is forecast to see commercial adoption around 2030. If it becomes the go-to for this technology, the stock could be ripe for huge upside from its current $266 billion valuation. Lastly, Salesforce dominates in customer relationship management software. It's also working to integrate AI into its product and maximize its profitability. Compared to many stocks on the market, it is relatively cheap and is valued at a lower level than the S&P 500, which trades for 23.7 times forward earnings. IBM PE Ratio (Forward) data by YCharts. As a final note, all three of these stocks trade for far less than Palantir's hypothetical 2030 valuation, which should be a sign for investors that the stock is unsustainably expensive. There is a near-endless list of stocks that appear to be better investments, and these three are among them. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Globe and Mail
5 hours ago
- Globe and Mail
10 Magnificent S&P 500 Dividend Stocks Down Over 10% to Buy and Hold Forever
Key Points Dividend stocks are a useful source of extra income. The best dividend stocks, however, also increase payouts over time and can build you a fortune. The S&P 500 index has some top-notch dividend stocks, some of which are no-brainer buys now. 10 stocks we like better than Medtronic › Dividend stocks are one of the most powerful wealth compounders. The S&P 500 (SNPINDEX: ^GSPC) index offers the perfect example. Over the past 25 years, while the S&P 500 rose by over 300%, its total returns crossed 550% thanks to reinvested dividends. As you may guess, the S&P 500 comprises some of the best dividend stocks out there, many of which have been multibaggers and have the potential to continue being so. Here are 10 such magnificent S&P 500 dividend stocks -- trading at least 10% below their all-time highs -- to buy now and hold forever. Johnson & Johnson: down 11.5%, yield 3.4% Johnson & Johnson (NYSE: JNJ) is a cash-flow machine. It generated $95 billion in free cash flow (FCF) over the past five years and returned 60% of it to shareholders. The stock is also a dividend powerhouse, increasing its dividend for 62 consecutive years. Johnson & Johnson has robust financials, invests heavily in research and development, and has big plans for both its businesses, pharmaceuticals and medical technology, making it a top S&P 500 dividend stock to buy and hold. ExxonMobil: down 11.6%, yield 3.7% ExxonMobil (NYSE: XOM) is one of the world's largest oil and gas companies. In 2024, the oil and gas giant generated $55 billion in cash flow from operations, compared to $30 billion in 2019. ExxonMobil is a dividend behemoth with a 42-year streak of consecutive dividend increases. After its $60 billion acquisition of Pioneer Natural Resources in 2023, ExxonMobil has been targeting higher production at even lower costs and focusing on boosting its cash flows, all of which makes this magnificent S&P 500 dividend stock a buy at every dip. Procter & Gamble: down 14%, yield 2.7% Procter & Gamble (NYSE: PG) owns over 60 brands, most of which are household names today. Although its organic sales growth has slowed due to higher costs and weak consumer sentiment, it's just a short-term blip. Procter & Gamble is restructuring operations and targeting core earnings per share by mid- to high-single-digit percentages in the long term by exiting low-margin brands and markets. Above all, Procter & Gamble has a strong balance sheet and is a Dividend King, having increased its dividend for 69 consecutive years. NextEra Energy: down 19%, yield 3.3% NextEra Energy (NYSE: NEE) operates the largest electric utility in America (Florida Power & Light), which generates steady cash flows. It is also the world's largest producer of wind and solar energy, as well as a key player in battery storage, all of which are growth drivers. NextEra Energy stock has increased its dividend for over 20 years and has generated humongous returns for investors who reinvested the dividends. The global shift to renewables and a massive pipeline make NextEra Energy a no-brainer S&P 500 dividend stock to buy and hold forever. NEE data by YCharts. Chevron: down 19%, yield 4.8% Chevron (NYSE: CVX) is one of the largest integrated oil companies, operating across the entire value chain, from exploration and production to pipelines, refining, chemicals, and marketing. Chevron has massive oil and gas reserves but is also growing new low-carbon businesses, such as hydrogen and renewable fuels. Chevron has increased its dividend for 38 consecutive years, making it one of the best oil dividend stocks within the S&P 500. Chevron also just won a dispute with ExxonMobil and has acquired Hess in a massive $53 billion deal. American Water Works: down 24%, yield 2.4% American Water Works (NYSE: AWK) is the largest regulated water and wastewater utility in the U.S., serving over 14 million customers and 18 military bases. AWK data by YCharts. While generating stable cash flows from these regulated and contracted businesses, American Water Works' regular investments in its infrastructure help it secure base rate hike approvals, which continue to drive its earnings, cash flows, and dividends higher. American Water Works is targeting 7% to 9% annual dividend growth for the long term, making it an incredibly safe S&P 500 dividend stock to buy now and hold forever. Realty Income: down 29%, yield 5.6% Realty Income (NYSE: O), a real estate investment trust (REIT), pays a dividend every month and has increased it for 110 consecutive quarters now. The company owns over 15,000 properties globally and leases them under triple-net leases, where the tenants bear most of the costs. So, Realty Income enjoys high margins, and its diverse portfolio enables the company to navigate economic challenges. Realty Income's commitment to paying a monthly and growing dividend makes it one of the top 10 dividend stocks to double up on now and hold. Oneok: down 29%, yield 5% Oneok (NYSE: OKE) is one of the largest energy infrastructure companies in the U.S., with a network of pipelines spanning 60,000 miles. Three big acquisitions over the past couple of years or so, including that of Magellan Midstream Partners, combined with organic expansions, should help Oneok steadily grow earnings and meet its goal of increasing the annual dividend by 3% to 4%. When coupled with a 5% yield, Oneok makes for an appealing S&P 500 dividend stock to buy and hold. Nucor: down 30%, yield 1.7% Nucor (NYSE: NUE) is America's largest and most diversified steel company. It is also vertically integrated, meaning it sources the bulk of its raw material in-house. That's a huge competitive advantage to have in a commodity business and one of the key factors behind Nucor's strong financials and dividend growth. Nucor aims to return at least 40% of its earnings to shareholders, has increased its dividend for 52 straight years, and is primed to benefit from President Donald Trump's steep tariffs on steel imports. NUE data by YCharts. Medtronic: down 33%, yield 3.3% With revenue of $33.5 billion for the fiscal year that ended April 25, 2025, Medtronic (NYSE: MDT) is the world's largest medical device manufacturer. It offers a wide range of products across cardiovascular, neuroscience, medical-surgical, and diabetes care and uses artificial intelligence and robotics technologies to build better products. Medtronic plans to divest its diabetes business into a separate company to unlock more value for shareholders. Meanwhile, it is only two dividend raises away from becoming a Dividend King, making this S&P 500 dividend stock a solid buy. Should you invest $1,000 in Medtronic right now? Before you buy stock in Medtronic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medtronic wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, NextEra Energy, and Realty Income. The Motley Fool recommends Johnson & Johnson, Medtronic, and Oneok and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
Globe and Mail
7 hours ago
- Globe and Mail
Citi Keeps Their Buy Rating on Charles Schwab (SCHW)
In a report released yesterday, Christopher Allen from Citi maintained a Buy rating on Charles Schwab, with a price target of $110.00. The company's shares closed yesterday at $95.80. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Allen covers the Financial sector, focusing on stocks such as Charles Schwab, Interactive Brokers, and LPL Financial. According to TipRanks, Allen has an average return of 28.1% and an 83.00% success rate on recommended stocks. In addition to Citi, Charles Schwab also received a Buy from William Blair's Jeff Schmitt in a report issued yesterday. However, on July 15, Piper Sandler maintained a Hold rating on Charles Schwab (NYSE: SCHW). The company has a one-year high of $97.50 and a one-year low of $61.15. Currently, Charles Schwab has an average volume of 8.05M. Based on the recent corporate insider activity of 126 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SCHW in relation to earlier this year. Last month, Jonathan S Beatty, the MD, Head of Advisor Services of SCHW sold 2,850.00 shares for a total of $249,546.00.
