Watch Ford Motor (F) rally today. The stock rose by 5.4% in after-hours trading after it posted second-quarter earnings.
In Q2, Ford earned $0.66 in EPS non-GAAP. This beat expectations, despite revenue falling by 15.2% Y/Y to $39.82 billion. Markets will like the full-year guidance increase. It is expecting adjusted EBIT of $10 billion to $11 billion. This is up from its previous guidance of $8.5 billion to $10.5 billion. Ford is expecting an adjusted annual selling rate of up to 16.5 million.
Visa (V) traded near its high for the year ahead of its earnings report. It earned $3.32 in EPS (non-GAAP) on revenue of $11.6 billion (+13.7% Y/Y). The strong results will give shareholders the confidence that the business is as good as ever.
V stock typically falls post-earnings. Today’s trading will be no different, so investors may take advantage of the dip to consider the stock.
On the policy side, watch out for the Federal Reserve’s policy statement. Markets expect the Fed to hold interest rates. Inflation remains high while job growth is strong. Bond yields rose, then pulled back slightly, ahead of the Fed news. Watch the IEF ETF for 7-10-year Treasury bill exposure. The 20+ year TLT ETF is also a compelling fund to watch. Its yield will fall if the Fed holds rates.
