MOrning Bell - Stock Trading LIVE! Thursday July 22nd

TL;DR

Jobless claims unexpectedly increase, hotel jobs lost during the pandemic, AT&T raises revenue forecast, Netflix ventures into video games, American and Southwest Airlines post profits, Intel reports earnings, and Visa reaches all-time highs.

Transcript

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Key Insights

• 🛄 Jobless claims unexpectedly increased, indicating ongoing economic challenges.
• 🐢 The hotel industry has experienced significant job losses, and recovery is expected to be slow.
• 🤨 AT&T is focused on its core business of providing phone and internet services, and it has raised revenue forecast for HBO Max.
• 🎮 Netflix is entering the video game industry to create an ecosystem similar to its success in streaming video content.
• 🦻 American and Southwest Airlines have posted profits in the second quarter, benefiting from federal aid and increased travel demand.
• 🌱 Intel's upcoming earnings report may provide insights into the company's strategy and plans.

Questions & Answers

Q: Why did jobless claims unexpectedly increase?

Jobless claims increased due to factors such as economic uncertainty, company layoffs, and a slowdown in the pace of recovery from the COVID-19 pandemic.

Q: What impact has the pandemic had on the hotel industry?

The hotel industry has suffered significant job losses, with 500,000 direct hotel operations jobs lost in the United States. Recovery is expected to be slow, and it is unlikely that all lost jobs will return by the end of the year.

Q: How is AT&T performing in the current market?

AT&T has raised its revenue forecast for HBO Max and reported an increase in net new phone subscribers. The company is focusing on its core business of providing phone and internet services.

Q: Why is Netflix entering the video game industry?

Netflix aims to learn from its users by offering video games at no additional cost to subscribers. The company wants to create an ecosystem similar to its success in streaming video content.

Q: How are American and Southwest Airlines faring in the current market?

Both airlines have posted profits in the second quarter, benefiting from federal aid and a surge in travel demand. However, factors such as higher fuel prices and increased flying may drive costs higher in the future.

Q: What can be expected from Intel's upcoming earnings report?

Investors are hoping for insights into Intel's strategy and plans, including details about a potential bid on semiconductor company GlobalFoundries. The company's recent focus on its manufacturing business and personnel changes may also be discussed.

Q: How has Visa's stock been performing recently?

Visa has reached all-time highs, driven by strong credit card spending. However, caution is advised as future price fluctuations are possible.

Summary & Key Takeaways

• Jobless claims unexpectedly increased, with initial claims for state unemployment benefits rising by 51,000 to 419,000 for the week ended July 17th, which was higher than economists' expectations.

• The hotel industry has suffered from the COVID-19 pandemic, losing 500,000 direct hotel operations jobs in the United States. Recovery is expected to be slow, with about 500,000 jobs not returning by the end of the year.

• AT&T has raised its revenue forecast for HBO Max as the company focuses on its core business of providing phone and internet services. The company added 789,000 net new phone subscribers who pay a monthly bill during the quarter.

• Netflix is entering the video game industry to learn from its users, with plans to offer video games to subscribers at no additional cost. The company aims to create an ecosystem similar to its success in streaming video content.

• American and Southwest Airlines have posted profits in the second quarter, benefiting from federal aid and a surge in travel demand.

• Intel is expected to report earnings, with investors looking for clues about the company's strategy and plans for a potential $30 billion bid on U.S.-based semiconductor company GlobalFoundries.

• Visa has reached all-time highs, driven by strong credit card spending. The company's stock is performing well, but caution is advised due to potential future price fluctuations.