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Key Takeaways

• Autoliv shares surged Friday after the world’s largest maker of airbags and seatbelts reported strong third-quarter results, despite a drop in light vehicle production globally.
• The company said it saw substantial outperformance in Europe and Asia, except for China.
• Despite Friday’s gains, shares remained lower for 2024.

Autoliv (ALV) shares surged Friday after the world’s largest maker of airbags and seatbelts reported strong third-quarter results, despite a drop in light vehicle production amid a global slowdown in the auto sector.

Autoliv posted third-quarter adjusted earnings per share (EPS) of $1.84, with revenue declining 0.8% from a year ago to $2.56 billion. Both figures were in line with analysts’ estimates compiled by Visible Alpha.

Autoliv Faces ‘Tough Environment’

CEO Mikael Bratt said that despite a “tough environment,” the company “managed to outgrow” light vehicle production, “enabling almost unchanged sales and operating income.” He added Autoliv had substantial outperformance in Europe and Asia, except for China.

Bratt noted the company expects market share gains with domestic Chinese original equipment manufacturers (OEM) in the coming years. 

Autoliv said that based on customer call-outs, it expects light vehicle production will decline 3% globally for the year. It now anticipates organic sales growth of about 1%, down from its earlier outlook of approximately 2%.

Autoliv shares were up over 5% at $98.84 in afternoon trading Friday, though they remained lower for 2024.

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American Express (AXP) reported better net income than expected and lifted its full-year profit outlook in its third-quarter results Friday morning, following a string of strong reports from several of the country’s biggest banks.

The credit card and financial services provider reported $16.64 billion in revenue, up from last year’s $15.38 billion and just under the $16.67 billion consensus estimate of analysts compiled by Visible Alpha. Net interest income (NII) came in at $4.01 billion, up from $3.44 billion a year ago and above the $3.92 billion expectation.

Profit rose to $2.51 billion, or $3.49 per share, up from $2.45 billion and $3.30, respectively. Analysts had expected $2.38 billion and an identical $3.30-per-share result as last year. The company also lifted its full-year profit outlook, now projecting earnings per share (EPS) of $13.75 to $14.05, up from $13.30 to $13.80 previously.

Shares of American Express were down nearly 2% after the report was released to $280.76. They are up about 50% since the start of the year.

American Express Follows String of Strong Bank Reports

The report from American Express comes after a number of big banks posted better-than-expected earnings over the last week, but also increased their provisions for credit losses (PCLs), as data has shown Americans falling behind on debt like credit cards and car loans.

The card provider also lifted its PCL to $1.36 billion, just above the $1.34 billion analysts had expected.

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Key Takeaways

• Netflix shares jumped 5% in extended trading on Thursday after the streaming giant topped Wall Street’s third quarter estimates and issued a strong revenue outlook.
• The stock has traded in a rising wedge since late June, with the price recently retracing to the pattern’s lower trendline and 50-day moving average ahead of the company’s quarterly results.
• Investors should monitor key overhead levels on the Netflix chart around $735 and $860, while also watching key support areas near $688 and $635.

Netflix (NFLX) shares jumped 5% in extended trading on Thursday after the streaming giant topped Wall Street’s third-quarter estimates and issued a strong revenue outlook.

During the quarter, Netflix added 5.1 million subscribers, surpassing expectations of 5 million, though the company has shifted its focus to revenue and profit margins as its business model matures. The company said it’s targeting an operating profit margin of 28% next year compared to its 27% goal this year, adding that its sees ample room to increase its margins over the long term.

Netflix shares have gained more than 41% this year prior to Thursday’s after-hours pop as investors cheer the company’s ongoing efforts to expand its advertising business and offer more live streaming events.

Below, we’ll break down the technicals on the Netflix chart and identify key price levels that investors will likely be watching out for.

Rising Wedge Pattern in Play

Netflix shares have traded within a rising wedge since late June, with the price recently retracing to the pattern’s lower trendline and 50-day moving average (MA).

Importantly, the stock on Thursday also registered its largest day of volume since mid-July, indicating portfolio repositioning ahead of the streaming giant’s quarterly results.

Given the stock’s expected earnings-driven jump, let’s look at several key overhead price levels that may come into focus and also point out two key support areas where the shares may attract buying interest during pullbacks.

Overhead Price Levels to Watch

Firstly, investors should eye the $735 level, an area on the chart where the shares could run into selling pressure near the rising wedge pattern’s upper trendline. This trendline has provided resistance on two separate occasions since late September.

To project a price target above the stock’s all-time high (ATH), we can use the measuring principle. This chart technique works by calculating the distance of the rising wedge near its widest point and adding that amount to the pattern’s top trendline. For instance, we add $125 to $735, which projects an upside target of $860.

Key Support Areas to Monitor

If a post-earnings rally fades, investors should initially monitor the $688 level. The stock could attract support in this area near the symmetrical triangle’s lower trendline, which also corresponds with a range of similar trading levels within the pattern.

A decisive breakdown below the wedge’s lower trendline opens the door for a decline to around $635, a level on the chart where investors may seek entry points near consolidation periods on the chart in April, May, and June, with the closely watched 200-day MA also positioned nearby.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• The Travelers Companies shares surged to a record high Thursday after the insurer reported better-than-expected profits for the third quarter.
• Higher premiums across all segments and increased investment income helped drive strong bottom-line growth, despite an uptick in catastrophe losses.
• Travelers also reported an improvement in its overall combined ratio, a key gauge of profitability for insurance companies.

Shares of The Travelers Companies (TRV) jumped more than 7% to close at a record high $264.82 Thursday, marking one of the top daily performances in the S&P 500 after the insurer reported better-than-expected profits for the third quarter.

Although Travelers reported a year-over-year uptick in catastrophe losses, strong growth in premiums and investment income helped the insurer more than triple its net income year-over-year to $1.26 billion, blowing past analysts’ estimates.

Higher Premiums, Investment Gains Help Offset Catastrophe Losses

Travelers reported third-quarter catastrophe losses of $939 million, up from $850 million a year earlier. The steeper losses primarily reflected the impact of Hurricane Helene, which caused devastating damage across several southeastern states at the end of the quarter, as well as severe wind and hail storms in multiple areas.

Despite the adverse impact of these events, Travelers managed to achieve strong bottom-line growth, thanks in part to higher premiums. Net written premiums reached a record level of $11.3 billion, up 8% year-over-year (YOY), with growth in all three of Travelers’ reporting segments: business insurance, bond and specialty insurance, and personal insurance.

An increase in investment income also helped Travelers weather the impact of Helene and other natural disasters. The insurer’s net investment income jumped 18%.

Travelers’ consolidated combined ratio, a measure of an insurer’s profitability that is calculated by dividing the sum of losses and related expenses over earned premiums, came in at 93.2%, an improvement of 7.8 percentage points from a year ago. A combined ratio below 100% indicates that an insurance firm is generating an underwriting profit.

With Thursday’s gains, Travelers shares have gained about 39% so far in 2024, well ahead of the S&P 500’s nearly 23% year-to-date gain.

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Key Takeaways

• Wall Street is bullish on Netflix ahead of its third-quarter earnings, due Thursday.
• Three quarters of the analysts covering the steamer have buy or equivalent ratings on the shares, according to Visible Alpha.
• Netflix stock is up more than 40% this year. It has slipped after its two previous earnings reports.

Netflix (NFLX) earnings are coming after the bell Thursday, with analysts generally bullish on the streamer’s stock—though they aren’t currently calling for large price appreciation.

Of the 20 analysts covering Netflix tracked by Visible Alpha, 15 have “buy” ratings on the shares; there’s only one “sell” rating.

The consensus price target is $732.26, about a 4% premium to to Wednesday’s $702 close. The price targets used to determine that average vary from $550 to $820. 

Analysts expect the streaming giant to post year-over-year revenue, profit, and subscriber growth ahead of the final quarter of 2024. Netflix shares dipped following the company’s quarterly reports in April and July.

The shares were down more than 1% in morning trading, leaving the stock up more than 40% this year.

Here’s what you need to know about Netflix’s upcoming earnings report.

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KEY TAKEAWAYS

• U.S.-listed Taiwan Semiconductor Manufacturing Co. shares are jumping 8% in premarket trading after the chipmaker posted a quarterly earnings surge and projected a buoyant outlook on the back of the artificial intelligence (AI) boom.
• The company, which supplies tech heavyweights such as Apple and Nvidia, reported a better-than-expected 54% year-over-year rise in third-quarter net income of 325.3 billion New Taiwan dollars ($10.12 billion).
• TSMC also reported a 39% jump in revenue to NT$759.69 billion ($23.64 billion) and a 57.8% gross margin, beating analysts’ estimates and its own guidance for both.

U.S.-listed Taiwan Semiconductor Manufacturing Co. (TSM) shares are jumping 8% in premarket trading after the chipmaker posted robust quarterly earnings and projected a buoyant outlook on the back of the artificial intelligence (AI) boom.

The company, which supplies tech heavyweights such as Apple (AAPL) and Nvidia (NVDA), reported a 54% year-over-year rise in third-quarter net income of 325.26 billion New Taiwan dollars ($10.12 billion), up from NT$211 billion. The profit figure by the world’s largest contract chip manufacturer beat the NT$300.78 billion consensus estimate of analysts polled by Visible Alpha. 

TSMC also reported a 39% jump in revenue to NT$759.69 billion ($23.64 billion) for the quarter and a 57.8% gross margin, above analysts’ estimates and the guidance it gave for both in the second quarter.

“Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading 3nm and 5nm technologies,” TSMC Chief Financial Officer (CFO) Wendell Huang said. “Moving into fourth quarter 2024, we expect our business to continue to be supported by strong demand for our leading-edge process technologies.”

TSMC’s Upbeat Outlook Lifts Chip Stocks Including Nvidia’s

TSMC’s upbeat earnings, in contrast to Dutch semiconductor-gear manufacturer ASML Holding’s (ASML) downbeat outlook earlier in the week, restored investor faith in the AI boom Thursday. Shares of AI chip giants Nvidia (NVDA), Arm Holdings (ARM) and Advanced Micro Devices (AMD) are all up at least 3%.

TSMC American depositary receipts (ADRs) have risen 80% this year.  

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Key Takeaways

• United Airlines shares could remain in focus on Thursday after soaring to their highest level in more than four years today following the full-service carrier topping quarterly estimates.
• The stock has trended higher since breaking out from a 21-month trading range last month and with the shares on track to record their highest weekly volume since mid-July, indicating strong buying conviction.
• Investors should monitor key resistance levels on United’s chart around $79 and $94, while also watching important support levels near $61 and $55.

United Airlines (UAL) shares could remain in focus on Thursday after soaring to their highest level in more than four years today as the full-service carrier topped quarterly estimates, issued an upbeat profit outlook, and announced a $1.5 billion share buyback program—its first since the pandemic.

The Chicago-based airline also addressed concerns of a summer seat supply glut that led to discounted fares, saying that unprofitable capacity had exited the market during the quarter, leading to an inflection point in revenue and demand. United shares have nearly doubled since their early August low and gained around 75% year-to-date (YTD) through Wednesday’s close.

Below, we’ll take a closer look at United’s weekly chart and use technical analysis to point out important price levels investors may be watching.

Trading Range Breakout

United Airlines shares fluctuated within a 21-month trading range before staging a breakout last month.

Since that time, the price has continued to trend sharply higher, with Wednesday’s earnings-driven surge putting the stock on track to record its highest weekly volume since mid-July, indicating strong buying conviction. Moreover, the 50-week moving average (MA) crossed above the 200-week MA earlier this month to form a golden cross, a chart pattern that signals a potential new uptrend.

However, while the relative strength index (RSI) confirms bullish price momentum with a reading above 70, the indicator also flashes extreme overbought conditions in the stock, which could lead to short-term profit taking.

Let’s look at several key resistance levels that could come into play if the stock continues its ascent and also identify a couple of important support price thresholds to watch during pullbacks.

Key Resistance Levels to Watch

Ongoing earnings momentum could see the shares climb to the $79 level, where they could face head winds from a horizontal line that connects a series of peaks and troughs that formed between May 2017 and February 2020.

A breakout above this level may fuel a move to around $94, a region where investors could look to lock in profits near a series of closely aligned peaks that formed on the chart from December 2018 to November 2019.

Important Support Levels to Monitor

A wave of profit taking could see the shares fall to the $61 level, a location on the chart where they may attract buying interest near prominent pandemic-era swing highs in March and June of 2021.

Further selling may lead to the airline’s stock revisiting key support at $55, where it would likely encounter buying interest near the initial mid-September breakout point around the prior trading range’s top trendline.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• United Airlines was the best-performing stock in the S&P 500 on Wednesday, gaining 12% and trading at its highest level since February 2020, when the spread of Covid-19 first began to rattle travel stocks.
• United executives said the U.S. airline industry had reached an “inflection point,” and forecast yields and margins would improve next year.
• Business travel, executives said, has continued to recover from its pandemic slump, helping to push U.S. airport traffic to record highs.

United Airlines (UAL) was the best-performing stock in the S&P 500 on Wednesday after the carrier’s executives said the airline industry had reached a long-awaited “inflection point,” supporting the company’s rosy business outlook.

Wednesday’s 12% advance put United shares at their highest level since February 2020, when the spread of Covid-19 first began to rattle travel stocks. The last few years have been a rollercoaster ride for airlines and their shareholders, who’ve weathered a global pandemic, soaring inflation, and the highest oil prices in nearly a decade.

United executives say the tide is turning in their favor, vindicating the bulls who have bid up airline stocks in recent months. The U.S. Global Jets ETF (JETS), composed of airlines, jet makers, and other travel stocks, has risen more than 30% since slumping amid a broad stock market sell-off in early August.

Delta Air Lines (DAL) shares rose nearly 7% on Wednesday, putting them, like United, at their highest level since February 2020.  

What Is Lifting Airline Stocks?

Airfare pricing trends improved throughout the third quarter as the air travel industry reached the “inflection point” United executives had forecast.

“We’re seeing unprofitable capacity begin to exit the market, leading to the expected domestic yield improvement,” CEO Scott Kirby told analysts Wednesday morning on the company’s earnings call, a transcript of which Investopedia obtained from AlphaSense.

Tough competition between America’s largest carriers and budget airlines has put pressure on airfares, which have declined nearly 5% this year according to official inflation data.

United executives are optimistic that the worst of the industry’s oversupply problem is behind them. Domestic passenger revenue per average seat mile (PRASM), a key performance measure for airlines, was positive in August and September after declining by more than 4% in July, according to chief commercial officer Andrew Nocella.

Nocella attributed much of the company’s third-quarter revenue challenges to “weak yields” on domestic leisure travel. “As we look into Q1, we’re selling these very same tickets at yields that are much higher,” he said.

Travel Demand Remains Healthy

Travel demand has slowed from the heyday of post-pandemic “revenge travel” in 2022, but remains robust. U.S. airports have seen record-high traffic this year, according to TSA throughput data.

Healthy leisure travel has been supplemented by a pick-up in business travel as companies have either implemented return-to-office mandates or embraced hybrid work and encouraged remote employees to make occasional trips to offices. Contracted corporate revenue increased 13% in September, putting sales to corporate clients on track to fall just short of their 2019 level.

Improving corporate travel demand, which executives said was strongest at coastal hubs serving the tech, finance, and professional services industries, were “creating a great setup for 2025,” said Nocella.

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Key Takeaways

• Lithium Americas and General Motors have formed a joint venture to extract lithium from the Thacker Pass site in Nevada.
• GM will provide $625 million in cash and credit and own a 38% stake in the project.
• GM said improving the domestic supply chain for lithium and other materials needed for electric vehicle batteries will help it manage costs.

Shares of Lithium Americas (LAC) skyrocketed Wednesday after the mining company announced the creation of a joint venture with General Motors (GM) to extract lithium, the element used in electric vehicle (EV) batteries, from a key Nevada mine.

Lithium Americas said that GM would put up $625 million and acquire a 38% stake in the Thacker Pass site. It added that $430 million of the money would be in a direct cash payment to support the construction of Phase 1 of the Thacker Pass lithium mine site, with the remaining in the form of credit that can be used as collateral to support reserve account requirements for a Department of Energy conditional $2.3 billion loan to develop Thacker Pass announced in March.

Lithium Americas would invest $211 million initially into the project and own the remaining 62% of the project

GM’s Goal To Build ‘Resilient’ EV Supply Chain

The company added that this new deal with GM “replaces the $330 million Tranche 2 common equity investment commitment from GM under its original investment agreement” made in January 2023. 

Jeff Morrison, chief procurement and supply chain officer at GM, noted that the carmaker is “pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain,“ and that getting critical raw materials, such as lithium, for EVs from domestic suppliers will “help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”

Even with Wednesday’s 26% jump, shares of Lithium Americas are down more than a third for the year. GM shares were up about 2% Wednesday, and have added almost 37% of their value this year.

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Key Takeaways

• Abbott Laboratories beat third-quarter profit and sales estimates on strong demand for its medical devices.
• Sales were also higher at its pharmaceutical unit, but fell at its diagnostics and nutrition divisions.
• Abbott boosted the midpoint of its full-year earnings forecast.

Abbott Laboratories (ABT) shares rose Wednesday, after the drug and healthcare products maker reported better-than-expected quarterly results and raised the midpoint of its profit outlook on strong demand for its medical devices.

The company posted third-quarter earnings per share (EPS) of 94 cents, with revenue up 4.9% from a year ago to $10.64 billion. Both figures exceeded analysts’ estimates compiled by Visible Alpha.  

“We’re well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year,” Chief Executive Officer (CEO) Robert Ford said.

Sales of Medical Devices Jump

Abbott said it expects full-year adjusted EPS in the range of $4.64 to $4.70, compared to the $4.61 to $4.71 range it projected when it announced its second-quarter results in July.

Sales of medical devices jumped 11.7% in the third quarter, boosted by double-digit percentage growth for diabetes care, structural heart, heart failure, and electrophysiology products. Established pharmaceuticals sales edged higher though sales at its diagnostics and nutrition units were down slightly.

The news sent shares of Abbott Laboratories up close to 2% in Wednesday afternoon trading. They’ve advanced about 7% since the start of the year.

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