Peapack-Gladstone Financial Corp. (NASDAQ: PGC) shares experienced a significant decline of 7.8% during Wednesday’s trading session. This substantial drop followed a downgrade from Piper Sandler, which changed its rating on the regional bank to Neutral from Overweight. The downgrade was prompted by worse-than-expected first-quarter results and concerns about the company’s overall financial outlook.
Global equities performed well in the first quarter of 2024, as discussed at the beginning of the year, with economic distortions from the pandemic normalizing. Consumption continued to drive growth, with unemployment remaining low and purchasing managers indices indicating expansion in both services and manufacturing. Despite concerns about inflation, it is expected to moderate and remain above the historically low levels experienced during the last decade. The US Federal Reserve and other major central banks are anticipated to cut interest rates, with the Fed likely to lower nominal policy rates as early as the second quarter. While the United States has achieved a soft landing with strong corporate earnings, Europe is showing economic resilience with easing inflationary pressures and improving manufacturing PMIs. Japan has emerged as one of the stronger markets due to positive inflation and structural tailwinds, including wage increases and changes to corporate governance code. China’s near-term outlook remains challenged, but valuations are attractive relative to long-term averages and emerging markets. Overall, a broader distribution of growth is expected as the post-pandemic global economy normalizes.
Oracle Corp., the tech giant known for its business software, is establishing its world headquarters in Nashville, Tennessee. The move places Oracle in the heart of the U.S. healthcare industry, CEO Larry Ellison affirmed. Oracle’s planned campus in Nashville will cover 1.2 million square feet, featuring state-of-the-art office space and a range of amenities. The relocation is part of Oracle’s strategic move to Texas in 2020, with the Nashville campus set to become the company’s global headquarters. Ellison cited Nashville’s thriving healthcare sector, with over 900 companies employing 550,000 individuals, as a key factor in the choice. The city’s vibrant culture, high quality of life, and strong employee appeal also played a significant role.
President Biden has secured the endorsement of the North America’s Building Trades Unions, adding to his growing list of union support. The endorsement came during an event where Biden and union leaders criticized former President Trump’s business record and fitness for office. Biden accused Trump of being incapable of running anything, citing his inability to pass infrastructure legislation and his callous treatment of workers. The endorsement adds to Biden’s efforts to win over blue-collar voters, a demographic that has traditionally supported Republicans.
Lockheed Martin Corp (LMT) reported better-than-expected first-quarter financial results, driven by revenue growth and strong earnings. Despite the positive results, analysts have varying opinions on the company’s stock.
The Department of Transportation (DOT) has announced new consumer protections against airline fees and expensive flight changes. The regulations will require airlines to provide full ticket prices before purchases and outline situations where refunds must be given to travelers for cancellations and other significant changes.
Norfolk Southern (NSC) has faced challenges since the pandemic, with supply chain disruptions, volatile freight demand, and inflation. The major train derailment in East Palestine, Ohio, added hundreds of millions of costs, including a $600 million settlement. A proxy battle with Ancora Holdings has also brought pressure for significant change. Despite these headwinds, NSC remains a core holding for the author due to its growth potential. The appointment of a new chief operating officer and aggressive operational targets suggest that improvements are underway. Analysts forecast significant EPS growth in the coming years, and the current valuation presents potential upside if NSC achieves its goals.
Bruker Corporation (BRKR) has made a series of acquisitions in 2023, boosting its sales and growth prospects. The company is now guiding for $3.26 billion in sales in 2024, with organic growth expected to contribute 6%. Adjusted earnings are projected to increase to $2.71-$2.76 per share. These acquisitions have increased Bruker’s leverage ratios to about 3 times, but management believes that the growth opportunities justify the higher debt levels.
MP Materials (NYSE: MP) shares fell 2.4% on Wednesday after J.P. Morgan downgraded the company to Neutral from Buy, citing weaker long-term NdPr pricing. The downgrade comes as NdPr prices have fallen to levels not seen since November 2020, prompting MP Materials to slow down the ramp-up of its Stage 2 production. J.P. Morgan analysts believe that while Stage 3 could start contributing to EBITDA later this year, large-scale magnet production is still a call option at this point. The analysts also see shipment, EBITDA, and free cash flow risk all weighted to the downside in the near term, although they expect MP Materials to drive improving financial performance over the mid-term.
Apple is hosting free “Made for Business” training sessions at its stores nationwide during Small Business Week, from April 28 to May 4. These sessions will feature small business leaders showcasing how they use Apple products and services to succeed. Demos will cover topics such as accepting payments through Tap to Pay, managing company devices, and utilizing cloud storage. With six events scheduled in Chicago, Miami, New York, San Francisco, and Washington, D.C., each session will incorporate local perspectives from successful small business owners.
