More insights from earnings reports: Stock trading, IPOs and semiconductor makers holding strong

Trader Talk

People walk past a TD Bank in Brooklyn, New York.

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Earnings keep coming in, and while some high-profile companies are continuing to refuse providing guidance, many are making very interesting comments about the state of their industries. Here’s a few:

Stock trading really strong. A solid report from TD Ameritrade. Equity trading remains strong with Daily Average Revenue Trades (DARTS) up 62% from prior year. That was not as high as March to May but still strong, with asset growth and revenues above guidance. The move to $0 commissions and all the trading volatility really helping these e-brokers. Nasdaq also reported record trading volumes. Interactive Brokers also reported really strong volume.

Initial public offering business also doing really well. Nasdaq CEO Adena Friedman: “The reopening of the IPO window is very encouraging. We have seen a steady inflow of listings from technology and health care … Looking ahead to the second half of the year, we see a very healthy pipeline of companies looking to tap public markets with many intending to execute again ahead of the November U.S. presidential election.”

 Credit card underwriters flying blind? Richard D. Fairbank, Capital One CEO, implied that the stimulus aid has made it difficult to know the true financial and employment picture. “So I don’t think we have … a rigorous measure of how many of our current borrowers are unemployed. But since we have a big chunk of America, I think that our borrowing base is reflective of America, and there are a lot of people that are in different degrees of unemployment right now.” This is similar to comments made previously by JP Morgan CEO Jamie Dimon about what a strange environment this is, with consumer incomes going up thanks to stimulus even though we are in a recession.

Big numbers from semiconductors. Big beats from Teradyne and Texas Instruments; Texas Instruments actually provided guidance above Street estimates, hit an historic high yesterday.

Reopening rocky for some but not for Best Buy. Quarter-to-date comparable store sales are up 2.5% so far, well above forecasts (estimates were for down 6-8%), online sales up 255%, but still no guidance from Best Buy.

People are still looking for bargains. Ollie’s Bargain Outlet guides second-quarter sales well above consensus, with comparables up 40%, topping estimates of a 7% gain.

Another winner in the work-from-home play. iRobot. Earnings of $1.06, way above the $0.29 estimate. Consumers staying at home fuel stronger sales of the Roomba vacuum cleaner. Also raised revenue forecasts.

Another company declines to provide guidance. Snap revenues were above expectations, but daily average users were light.

 - Transcripts provided by Sentieo.

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