Wall Street Breakfast Podcast: Intel Surges On Q2 Results

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Intel (INTC) surges as Q2 results show PC rebound underway, strong guidance. (00:27) U.S. crude oil (CL1:COM) benchmark closes above $80 for the first time since April. (01:41) First Solar (FSLR) to invest $1.1B in new U.S. factory; posts strong Q2 earnings beat. (02:33)

This is an abridged transcript of the podcast.

Intel (NASDAQ:INTC) is up more than 7% premarket after the semiconductor giant posted second-quarter results that topped estimates and showed signs of a recovery in the PC market.

For the period ending July 1, Intel (INTC) earned an adjusted 13 cents per share on $12.9B in revenue, as the company’s Client Computing Group generated $6.78B in revenue, above estimates.

A consensus of analysts expected the company to lose 3 cents per share on $12.14B in revenue.

The company also generated $454M in revenue attributed to Mobileye (MBLY), which it partially spun-off in October 2022.

AMD (AMD) and Nvidia (NVDA) shares rose in after-hours trading following the results.

Looking ahead, Intel (INTC) said it expects third-quarter revenue to be between $12.9B and $13.9B, with the mid-point above the $13.28B estimate. It also expects adjusted earnings of 20 cents per share, topping the 13-cent-per-share estimate.

The Santa Clara, California-based Intel (INTC) also said it is on track to deliver $3B in cost savings this year.

U.S. benchmark WTI crude oil settled above the $80/bbl mark Thursday for the first time in three months.

This was supported by supply tightness following recent production cuts from Saudi Arabia and Russia, and the U.S. reported its economy grew by a greater than expected 2.4% in the last quarter.

China’s pledge earlier this week to boost policy support for the economy also has sparked hopes for greater oil demand from the world’s largest crude importer.

Front-month Nymex crude (CL1:COM) for September delivery closed +1.6% to $80.09/bbl, and September Brent crude (CO1:COM) also finished +1.6% to $84.24; for both benchmarks, it was the highest settlement value since April 18 and their fifth gain in the past six sessions.

First Solar (NASDAQ:FSLR) is up more than 8% premarket after unveiling plans to build a fifth manufacturing facility in the U.S.

The site of that facility has not been determined. First Solar plans to invest as much as $1.1B to further expand U.S. capacity to produce its own solar modules.

First Solar (FSLR) said the fully vertically integrated facility would raise the company’s nameplate manufacturing capacity by 3.5 GW to reach ~14 GW in the U.S. and 25 GW globally by 2026.

First Solar (FSLR) also reported Q2 earnings that easily beat analyst estimates.

Other headlines to look out for on Seeking Alpha:

3D Systems targets Aug. 4 for completion of talks with Stratasys; calls offer ‘best and final’

TC Energy to split in two with spinoff of liquids pipeline business

T-Mobile dips after revenue miss, but a beat-and-raise on customer growth

Digital Realty, TPG form joint venture for three Virginia data centers

Oatly crumbles after earnings miss, disappointing guidance

Ford rallies after hiking guidance, setting lofty EV targets

On our catalyst watch for the day- Analysts have the Procter & Gamble (PG) earnings call circled as a potential share price mover for the broad consumer products sector. Stocks with a high trading correlation with P&G include Colgate-Palmolive (CL), Unilever (UL), and Kimberly-Clark (KMB).

Wall Street’s major averages on Thursday ended lower.

The Nasdaq (COMP.IND) closed 0.55% lower.

The S&P 500 (SP500) slipped 0.64%. Meanwhile, the Dow (DJI) retreated 0.67%. The blue-chip index was unable to build upon its historic 13-day win-streak.

All 11 S&P sectors – with the exception of Communication Services – ended in the red. Real Estate, Utilities and Financials topped the losers.

Treasury yields were higher after the GDP numbers. The 10-year yield (US10Y) was up 16 basis points to 4.01%, while the 2-year yield (US2Y) was up 10 basis points to 4.93%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.3%, the S&P 500 is up 0.5% and the Nasdaq is up 0.9%. Crude oil is down 0.3% at more than $79 a barrel. Bitcoin is down 0.9%.

In the world markets, the FTSE 100 is up 0.2% and the DAX is down 0.1%.

On today’s economic calendar, at 830am personal income and outlays and at 3pm farm prices.

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