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Technology stocks led by semiconductors are leading the charge this morning after Taiwan Semiconductor Manufacturing (TSM) reported earnings. TSM was arguably the most important earnings report of the week due to its importance in the AI buildout as the world’s leading manufacturer of chips. Their earnings numbers, guidance, and commentary out of their CEO has semiconductor stocks leading this morning (and tech following suit) after lagging most of the week.
TSM CEO C.C. Wei pointed to robust AI demand and stated “The demand is real. I believe it’s just the beginning of this demand and it will continue for many years.” The numbers and commentary not only have TSM and semiconductors up this morning but help provide another boost of energy to the important AI narrative. This has been one of the strongest narratives in the history of the market and does not look to be ending anytime soon.
Stocks in the News
- Taiwan Semiconductor (TSM): Shares surged more than 8% after the company reported earnings of $1.94 per share ($1.74), beating by 11.49%. Revenue was $23.50 billion, up 36.03% year-over-year. The company raised Q4 revenue guidance to $26.10 billion to $26.90 billion ($24.21 billion).
- Elevance Health (ELV): Shares plummeted over 10% after reporting earnings of $8.37 per share ($9.70), missing by 13.71%. Revenue was $45.11 billion, up 5.27% year-over-year. The company lowered its full-year EPS guidance to $33.00 ($37.20) amid “unprecedented challenges in the Medicaid business.”
- Truist Financial (TFC): Shares moved modestly after Truist reported earnings of $0.97 per share ($0.89), beating by 8.99%. Revenue was $7.84 billion, down 6.02% year-over-year. No updated guidance was provided by the company.
- CSX (CSX): Shares fell more than 4% after the transportation company missed earnings expectations, posting $0.46 per share ($0.48), missing by 4.17%. Revenue was $3.62 billion, up 1.32% year-over-year, below analyst expectations.
- Steel Dynamics (STLD): Shares rose slightly after the company reported earnings of $2.05 per share ($1.98), beating by 3.54%. Revenue was $4.34 billion, down 5.35% year-over-year. The company reaffirmed its full-year guidance.
Economic Reports
The recent trend of stronger than expected economic data continued this morning with beats in retail sales and the Philly Fed Manufacturing Index. There was nothing in today’s data to reignite slowing growth fears. Quite the opposite.
Retail Sales MoM: 0.4% vs 0.3% expectations
Core Retail Sales MoM: 0.5% vs 0.1% expectations
Unemployment Claims: 241k vs 241k expectations
Philly Fed Manufacturing Index: 10.3 vs 4.2 expectations
With no economic reports of significance until next Thursday, one can expect soft landing narratives to be all the rage in the coming days.
Next 24 Hours
Earnings season continues with another wave of earnings reports before the market bell tomorrow. Among the highlights include Netflix (NFLX), Intuitive Surgical (ISRG), American Express (AXP), Schlumberger (SLB), and Proctor & Gamble (PG).
Have a fantastic Thursday!
Taiwan Semiconductor (TSM)
Nice breakout to all-time highs this morning out of Taiwan Semiconductor Manufacturing Company (TSM) after their earnings. This will be on secondary pattern watch and provides a boost to sentiment in the tech space after ASML’s earnings earlier in the week.
