Market Snapshot
briefing.com
| Dow | 33930.60 | +213.56 | (0.63%) | | Nasdaq | 11543.81 | +149.99 | (1.32%) | | SP 500 | 4057.52 | +39.75 | (0.99%) | | 10-yr Note | +1/32 | 3.53 |
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| | NYSE | Adv 2540 | Dec 471 | Vol 1.2 bln | | Nasdaq | Adv 2450 | Dec 1099 | Vol 5.5 bln |
Industry Watch
| Strong: Consumer Discretionary, Communication Services, Information Technology, Materials |
| | Weak: -- |
Moving the Market
-- Digesting latest slate of earnings news, which is receiving mostly positive reactions
-- Strength from some mega cap stocks
-- Falling Treasury yields and weakening dollar
-- Broad buying interest fueled by the notion that the Fed may be compelled to pause its rate hikes in the near future
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Closing Summary
31-Jan-23 16:30 ET
Dow +368.95 at 34085.99, Nasdaq +190.74 at 11584.56, S&P +58.83 at 4076.60
[BRIEFING.COM] The stock market closed out January on a decidedly positive note. The main indices recovered all of yesterday's losses, driven by a lingering sense that the Fed may be compelled to pause its rate hikes in the near future following a pleasing Q4 Employment Cost Index and some weaker-than-expected January Chicago PMI and Consumer Confidence data.
This notion fueled a risk-on mentality that had many high-beta stocks continue their monthly outperformance. To that end, the Russell 2000 rose 2.3% versus a 1.5% gain in the S&P 500 and a 1.7% gain in the Nasdaq Composite. The Invesco S&P High Beta ETF (SPHB) also rose 2.3%.
Notably, there was a late surge of buying interest that was attributed to a Wall Street Journal article by Nick Timiraos that suggested today's Employment Cost Index report could increase the possibility of Fed officials agreeing to pause the rate hikes in the near future. The major indices closed at their highs for the day.
Mega cap stocks, which have steered gains all month, outpaced the main indices today. The Vanguard Mega Cap Growth ETF (MGK) rose 1.6% today and 10.7% in January.
Today's upside bias in the stock market was also helped along by positive reactions to some notable companies that reported quarterly results. Exxon Mobil (XOM 116.01, +2.45, +2.2%), UPS (UPS 185.23, +8.26, +4.7%), and International Paper (IP 41.82, +4.03, +10.7%) were among the standouts in that regard.
Some other post-earnings report standouts included General Motors (GM 39.32, +3.03, +8.4%) and PulteGroup (PHM 56.89, +4.90, +9.4%), which are helped propel the S&P 500 consumer discretionary sector (+2.2%) towards the top of the leaderboard, along with gains in Amazon.com (AMZN 103.13, +2.58, +2.6%) and Tesla (TSLA 173.22, +6.56, +3.9%).
Aside from consumer discretionary, the top performers were the cyclical materials (+2.2%), real estate (+1.9%), and industrial (+1.7%) sectors. All 11 sectors were able to close with a gain, but the slimmest gains were registered by the defensive-oriented utilities (+0.7%) sector.
Market breadth reflects the broad buying interest behind today's gains. Advancers lead decliners by a greater than 5-to-1 margin at the NYSE and a greater than 3-to-1 margin at the Nasdaq.
Notably, Dow components Caterpillar (CAT 252.29, -9.21, -3.5%) and McDonald's (MCD 267.40, -3.49, -1.3%) went against the grain following their quarterly reports.
- Nasdaq Composite: +10.7% YTD
- Russell 2000: +9.7% YTD
- S&P Midcap 400: +9.1% YTD
- S&P 500: +6.2% YTD
- Dow Jones Industrial Average: +2.8% YTD
Reviewing today's economic data:
- Q4 Employment Cost Index 1.0% (Briefing.com consensus 1.1%); Prior 1.2%
- The key takeaway from the report is that employment costs moderated in the fourth quarter, which is a step in the right inflation direction as far as the Fed is concerned, although the Fed still won't be content with the idea that the inflation problem has been solved.
- November FHFA Housing Price Index -0.1%; Prior 0.0%
- November S&P Case-Shiller Home Price Index 6.8% (Briefing.com consensus 6.8%); Prior was revised to 8.7% from 8.6%
- January Chicago PMI 44.3 (Briefing.com consensus 45.4); Prior was revised to 45.1 from 44.9
- December Consumer Confidence 107.1 (Briefing.com consensus 108.1); Prior was revised to 109.0 from 108.3
- The key takeaway from the report is the Conference Board's acknowledgment that a reading below 80.0 for the Expectations Index often signals a recession within the next year.
Ahead of tomorrow's open, Altria (MO), AmerisourceBergen (ABC), Brinker (EAT), Humana (HUM), Johnson Controls (JCI), Peloton (PTON), Scotts Miracle-Gro (SMG), T-Mobile (TMUS), and Waste Management (WM) will headline the earnings reports.
Looking ahead to Wednesday, market participants will receive the following economic data:
- 7:00 ET: Weekly MBA Mortgage Index (prior 7.0%)
- 8:15 ET: January ADP Employment Change (Briefing.com consensus 170,000; prior 235,000)
- 9:45 ET: Final January IHS Markit Manufacturing PMI (prior 46.8)
- 10:00 ET: December Construction Spending (Briefing.com consensus 0.0%; prior 0.2%), January ISM Manufacturing Index (Briefing.com consensus 48.0%; prior 48.4%), and December JOLTS job openings (prior 10.485 mln)
- 10:30 ET: Weekly EIA crude oil inventories (prior 0.533 mln)
- 14:00 ET: February FOMC Rate Decision (Briefing.com consensus 4.50-4.75%; prior 4.25-4.50%)
Market dips before closing bell
31-Jan-23 15:35 ET
Dow +211.45 at 33928.49, Nasdaq +131.45 at 11525.27, S&P +37.35 at 4055.12
[BRIEFING.COM] The market took a slight dip recently before inching higher again.
Adv. Micro Devices (AMD), Amgen (AMGN), Electronic Arts (EA), Juniper Networks (JNPR), Match Group (MTCH), Mercury Systems (MRCY), Mondelez Intl. (MDLZ), Snap (SNAP), and Western Digital (WDC) are among the notable companies reporting earnings after today's close.
Ahead of tomorrow's open, Altria (MO), AmerisourceBergen (ABC), Brinker (EAT), Humana (HUM), Johnson Controls (JCI), Peloton (PTON), Scotts Miracle-Gro (SMG), T-Mobile (TMUS), and Waste Management (WM) will headline the earnings reports.
Looking ahead to Wednesday, market participants will receive the following economic data:
- 7:00 ET: Weekly MBA Mortgage Index (prior 7.0%)
- 8:15 ET: January ADP Employment Change (Briefing.com consensus 170,000; prior 235,000)
- 9:45 ET: Final January IHS Markit Manufacturing PMI (prior 46.8)
- 10:00 ET: December Construction Spending (Briefing.com consensus 0.0%; prior 0.2%), January ISM Manufacturing Index (Briefing.com consensus 48.0%; prior 48.4%), and December JOLTS job openings (prior 10.485 mln)
- 10:30 ET: Weekly EIA crude oil inventories (prior 0.533 mln)
- 14:00 ET: February FOMC Rate Decision (Briefing.com consensus 4.50-4.75%; prior 4.25-4.50%)
PYPL announces layoff
31-Jan-23 15:00 ET
Dow +213.56 at 33930.60, Nasdaq +149.99 at 11543.81, S&P +39.75 at 4057.52
[BRIEFING.COM] The main indices continued to climb in recent trading.
A short time ago, PayPal (PYPL 81.47, +1.88, +2.4%) announced plans to reduce its global workforce by 2,000, or about 7.0%.
Energy complex futures settled the session higher. WTI crude oil futures rose 1.3% to $78.95/bbl and natural gas futures rose 0.1% to $2.68/mmbtu.
On a related note, the S&P 500 energy sector (+0.5%) holds the slimmest gain for the ten sectors trading up despite an earnings-driven boost from Exxon (XOM 115.37, +1.80, +1.6%).
Int'l Paper, Pentair make post-earnings move atop S&P 500 on Tuesday
31-Jan-23 14:30 ET
Dow +203.57 at 33920.61, Nasdaq +135.59 at 11529.41, S&P +36.13 at 4053.90
[BRIEFING.COM] The major averages peaked in the last half hour, the S&P 500 (+0.90%) firmly in second place at this juncture.
S&P 500 constituents A.O. Smith (AOS 66.75, +7.19, +12.07%), Int'l Paper (IP 41.83, +4.04, +10.69%), and Pentair (PNR 54.95, +4.25, +8.38%) dot the top of the standings today, all following earnings.
Meanwhile, Corning (GLW 34.73, -1.66, -4.56%) tumbles as the company's Q1 guidance miss overshadows Q4 beat.
Gold reverses earlier losses, ends +6.5% higher in January
31-Jan-23 14:00 ET
Dow +218.24 at 33935.28, Nasdaq +135.99 at 11529.81, S&P +36.90 at 4054.67
[BRIEFING.COM] With about two hours to go on Tuesday, and January trading, the tech-heavy Nasdaq Composite (+1.19%) stands at HoDs and firmly in first place.
Gold futures settled $22.40 higher (+1.2%) to $1,945.30/oz, reversing earlier losses as the dollar, too made a reversal off earlier gains to now sit lower; the yellow metal gained +6.5% in January.
Meanwhile, the U.S. Dollar Index is down about -0.2% to $102.03.
Page One
Last Updated: 31-Jan-23 09:05 ET | Archive
That's a wrap (almost) on January 2023
It is nearly a wrap on the first month of 2023 and it has been some gift for investors. Yesterday, however, the bow on top got taken off and this morning the wrapper isn't exactly smooth around the edges.
Currently, the S&P 500 future are up 12 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 39 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are up 80 points and are trading 0.2% above fair value.
In some respects, nothing has changed overnight even though there has been a rush of earnings news and some better-than-expected Manufacturing PMI and Non-Manufacturing PMI data for January out of China.
Market participants are continuing to exercise some caution in front of Wednesday's FOMC meeting and press conference, concerned that Fed Chair Powell will make a concerted effort to squash the market's belief that the Fed is going to cut rates before the end of the year.
Part of that concern is wrapped up in the notion that the stock market has gotten too far ahead of itself with the January rally effort.
Accordingly, the response to earnings results today has been somewhat mixed given that many stocks have rallied in front of their reports. Caterpillar (CAT), McDonald's (MCD), Pfizer (PFE), and Exxon Mobil (XOM) are trading lower after their reports, whereas, General Motors (GM), UPS (UPS), PulteGroup (PHM), and International Paper (IP) are trading higher after their reports.
These mixed responses are stunting the broader market's progress, although a pleasing Q4 Employment Cost Index (ECI) managed to turn the tide of negativity seen earlier in the futures market.
Compensation costs for civilian workers increased 1.0%, seasonally adjusted, for the three-month period ending in December 2022 (Briefing.com consensus 1.1%) following a 1.2% increase for the three-month period ending in September. Wages and salaries, which account for about 70% of compensation costs, increased 1.0% (versus 1.3% prior), and benefit costs increased 0.8% (versus 1.0% prior).
The key takeaway from the report is that employment costs moderated in the fourth quarter, which is a step in the right inflation direction as far as the Fed is concerned, although the Fed still won't be content with the idea that the inflation problem has been solved.
Nonetheless, the equity futures market liked the implications of this report, which is closely watched by the Fed, and turned higher in its wake. The Treasury market liked it, too.
The 2-yr note yield, which was at 4.24% in front of the report, has moved down to 4.19%, and the 10-yr note yield, which was at 3.53% in front of the report, has moved down to 3.49%.
Soon enough, it will be a wrap on January 2023. Whether there is a bow on top at the end of today's session remains to be seen but things looks good -- or at least better than they did before the ECI report -- for the open.
-- Patrick J. O'Hare, Briefing.com
Exxon Mobil tops off record-setting year with strong Q4 as it taps into Permian Basin assets (XOM)
Bolstered by high commodity prices, rising demand for energy, and a well-timed strategy to invest in its Permian Basin assets, Exxon Mobil (XOM) surpassed 4Q22 earnings estimates, keeping the stock's upward momentum going.
- Since the beginning of 2022, shares of XOM have surged by nearly 90%, crushing the S&P 500 in the process, which is down by 15% during this same period.
- While investors shunned typical high growth sectors like technology and consumer discretionary as interest rates shot higher, capital poured into energy names like XOM and rival Chevron (CVX). Both of those companies generated record profits in 2022, with XOM seeing its earnings skyrocket by 142% yr/yr to a staggering $55.7 bln.
- In Q4, XOM's Permian Basin assets delivered record production of 560,000 oil-equivalent barrels per day, representing a 30% yr/yr increase in output.
- Although CEO Darren Woods acknowledged that favorable conditions played a significant role in XOM's strong results, he also credited the company's decision to invest in its most profitable assets -- Guyana and the Permian Basin -- when the pandemic led others to move away from fossil fuels.
- That strategy continues to pay dividend as the Upstream segment generated a $2.1 bln increase in earnings on a yr/yr basis.
- A pullback in crude oil and natural gas prices in Q4 led to a 34% qtr/qtr decline in Upstream earnings, but Mr. Woods believes that oil prices will move higher again this year. An economic recovery in China, driven by the easing of COVID-related restrictions, and a relatively tight supply situation are two key factors that should buoy oil prices.
- In turn, XOM intends to keep the oil flowing from its Permian Basin assets again in 2023 and beyond, which also bodes well for its refining business. The company's Energy Products segment churned out a profit of $4.1 bln in Q4, driven by stronger refining margins and increased marketing and trading contributions.
- Looking beyond the main EPS and revenue numbers, cash flow from operations is perhaps the most important metric for XOM since it supports the company's substantial capital allocation strategy. For the quarter, cash flow from operations totaled $76.8 bln.
- It's hard to imagine now, given how robust XOM's business is, but in 4Q20 the company generated cash flow of just $4.8 bln. In 2020, the company also posted its first net loss in over 40 years, amplifying concerns that it will need to significantly cut its dividend. Today, that dividend, which currently yields about 3.6% annually, looks very safe, even as XOM ramps up its share buyback program. On that note, XOM is planning to boost its share buyback program to $50 bln through 2024.
The main takeaway is that XOM is a cash flow and earnings generating machine and there is little reason to believe that its ability to produce strong profits will take a meaningful turn for the worse any time soon. Even if the global economy slows, oil and gas prices will still be supported by lower production and supply as more energy companies move towards renewables.
Corning tumbles after new unfavorable developments in Q4 extend headwinds (GLW)
Corning (GLW -4%), most known for its display technology across many consumer applications, did not shatter expectations in Q4. Although GLW topped earnings and sales estimates, its 1Q23 guidance raised a few alarms, spurring a sell-the-news reaction today. The company is projecting adjusted EPS of $0.35-0.42 and revs of $3.2-3.4 bln, both below consensus and typical seasonality.
GLW quickly pointed out that Q1 sales expectations are not indicative of its 2023 run rate. CEO Wendell Weeks mentioned that he would be disappointed if sales did not grow sequentially in 2Q23, with 2H23 experiencing yr/yr growth. Additionally, after GLW stated that profitability and free cash flow were not where they should be in Q4, the company was upbeat regarding its recent profit and cash flow initiatives, including raising prices in certain segments and improving productivity and supply chains. Management expects these moves to translate to meaningful benefits throughout 2023.
Nevertheless, these remarks proved insufficient to curb the elevated investor concern following GLW's near-term outlook.
- Most of the uncertainty stems from China. GLW stated that the re-opening of the economy in China, where consumer sentiment was already low, is sparking a significant wave of COVID outbreaks resulting in lower consumer spending and workforce shortages. GLW's Display, Environmental Technologies, and Specialty Materials segments are most affected. Combined, these businesses totaled over 46% of Q4 sales, so the impact here is significant.
- Furthermore, the re-opening of China is creating a series of additional issues, including panel maker utilization not having bottomed out. During its Q3 earnings call in late October, GLW predicted that panel utilization likely bottomed in September, reiterating this view in early December. However, its confidence was damaged after panel maker utilization leveled off in December and decreased in January. GLW now believes utilization will resume its recovery soon, but it was delayed by at least a quarter.
- A similar situation occurred in GLW's Environmental Technologies segment, where Q4 sales slipped 7% sequentially, driven by a decline in China OEM production levels in December.
- On a lighter note, GLW is optimistic that China will overcome these headwinds, helping demand improve. However, management admitted that it was too early to call precisely when these improvements may occur.
Optimism that the challenges hindering financial performance in FY22 already bottomed out was baked into the price leading into GLW's Q4 report. Therefore, management discussing new unfavorable developments that occurred in Q4 is driving a minor sell-off today. It will be critical to keep an eye on the situation in China, as it will directly impact whether GLW's bottoming out prediction was off by only one quarter or if issues will hang over the company throughout the year.
On the plus side, GLW still boasts segments amid influential trends, including its largest segment, Optical Communication, benefiting from a multi-year build cycle driven by broadband, 5G densification, and cloud computing. As we saw in FY22, GLW's other lines of business are excellent at helping offset weak consumer demand, which may be the story again in 2023.
General Motors is bolting higher on strong Q4 earnings; EV line-up looking strong (GM)
General Motors (GM +8%) is trading higher after the automotive giant reported Q4 results this morning. GM reported big upside for both EPS and revenue. GM also guided FY23 EPS to $6.00-7.00, which was better than analyst estimates, and to FY23 adjusted EBIT of $10.5-12.5 bln.
- Adjusted EBIT is the most closely followed metric. It jumped 34% yr/yr to $3.799 bln in Q4, and was up 1% in 2022 at $14.474 bln, with a 9.2% adjusted EBIT margin. Q4 adjusted EBIT was driven by solid unit volume growth of 30% yr/yr and robust pricing. Production in 2H22 increased with strengthening supply chain and logistics, allowing GM to improve dealer inventory for certain vehicles. Vehicles physically on dealer lots has been improving gradually, but still approximately one-third of the level from mid-2019, supporting a favorable supply and demand environment.
- Looking ahead, GM is targeting to end 2023 with 50-60 days of total dealer inventory on a portfolio basis. This is down 20-30 days from mid-2019 and is reliant on a continued improvement in logistical challenges the industry has faced. Within this portfolio target, trucks are expected to run at higher levels.
- GM spent a lot of time talking about EVs. It continues to see strong demand for its EVs. The Chevrolet Bolt EV and Bolt EUV saw record sales, which demonstrates the importance of affordable EVs in its portfolio. They were the best-selling mainstream EVs in 2H22 and GM plans to increase production. The Cadillac LYRIQ, which launched in September 2022, has dealers very excited. They delivered around 2,400 units through December with about 80% of customers coming from other manufacturers.
- Looking ahead, GM is excited about its summer launch of the Chevrolet Blazer EV and Equinox EV. More than 40% of Blazers reservation holders are new to EVs. In the fall, GM will begin building the sold-out Silverado RST first edition, Chevrolet's flagship electric pickup. GM says excitement is also building at Buick, which is now building pre-production units of the Buick Electra 5 and SUV inspired by the Electra-X Concept. It will be the first in an all-new portfolio of Buick EVs.
- In addition to earnings, GM also announced it will make an equity investment of up to $650 mln in Lithium Americas (LAC). The two companies will jointly invest to develop the Thacker Pass mine in Nevada, which is the largest known source of lithium in the US and the third largest in the world. LAC estimates that the potential output from this project could support annual production of up to 1 mln EVs. Production is scheduled to start in 2H26.
Overall, this was a great way for GM to wrap up 2022. Pricing and demand remain strong and GM sounds very bullish on its EV lineup, including some key launches later this year. We like that GM is not cutting EV price like Tesla and Ford, noting "we're priced where we need to be." We also like the LAC deal to supply GM batteries. Concerns about consumer demand declining in 2023 are not really materializing. Overall, GM seems poised for a good year in 2023.
Caterpillar digging itself a hole today after EPS miss, but demand remains healthy (CAT)
For the first time since the pandemic-impacted quarter of 1Q20, Caterpillar (CAT) fell short of EPS expectations, even though demand for its construction machinery remained healthy in 4Q22. In fact, each of its three segments -- Construction Industries, Resource Industries, and Energy & Transportation -- once again generated solid double-digit sales growth. Furthermore, CAT's total sales of $16.6 bln easily exceeded estimates, reflecting robust demand across most of its end markets. As a gauge for the health of the global economy, CAT's strong top-line performance goes against the narrative that global economies are heading towards a recession.
- Although CAT's growth is a positive sign for the global economy, the company is still encountering some stiff headwinds. In particular, higher manufacturing and freight costs, coupled with negative foreign exchange effects, continued to pressure margins and profits in Q4. On its own, foreign exchange accounted for a $0.41/share headwind to EPS, which was more than enough to cause the Q4 EPS shortfall.
- The company is taking pricing actions to mitigate these issues. Encouragingly, sales volumes haven't dropped off as CAT implements these price increases. In Q4, higher volume contributed about $1.6 bln of the total $2.8 bln yr/yr increase, while higher prices added about $1.7 bln to the top-line.
- Growth was well balanced across CAT's segments, but, like last quarter, Resource Industries led the way with revenue jumping by 26% to $717 mln. This segment, which primarily caters to mining and heavy construction companies, continues to benefit from high commodity prices.
- Meanwhile, both the Construction Industries and Energy & Transportation segments posted revenue growth of 19%. Rising spending on infrastructure projects and nonresidential construction is supporting the Construction Industries unit, while an increase in oil and gas exploration and production is fueling CAT's Energy & Transportation business.
- On a GAAP basis, CAT's operating margin looks a bit soft, declining by 160 bps yr/yr to 10.1%. However, this metric includes a couple significant non-cash charges, such as a $925 mln goodwill impairment charge. Excluding these charges, CAT's adjusted operating margin looks much better, climbing by 50 bps sequentially to 17.0%.
- Importantly, CAT also reaffirmed its margin outlook for FY23, stating that it expects adjusted operating margin to be within its anticipated range of 18-21%, at the high end. Additionally, the company still expects 2023 sales to increase versus 2022 as it capitalizes on favorable pricing.
CAT has been red-hot since it last reported earnings in late October, gaining about 35% since then. That rally made the stock prone to a "sell-the-news" reaction, which is what we're seeing today as investors lock in some profits. Overall, though, the results were pretty solid as the EPS miss was mostly driven by FX headwinds. Looking ahead, the outlook remains bright for CAT, thanks to the resilient demand for its machinery.
Whirlpool tries to stir up enthusiasm surrounding its Q4 earnings beat and decent FY23 outlook (WHR)
Whirlpool (WHR) is looking to stir up some enthusiasm following its sizeable Q4 earnings beat yesterday after the close. The household appliance maker that owns the KitchenAid brand also provided solid FY23 guidance, projecting adjusted earnings mostly above consensus and revs nicely ahead of consensus. These headlines are positive reversals from what we witnessed last quarter, where WHR posted wide misses on its top and bottom lines while slashing its full-year guidance for the third time.
- Q4 numbers were decent, especially when stacked against the series of challenges WHR endured, including inflation, rising mortgage rates, and supply chain disruptions. Adjusted EPS fell by less than analysts predicted, tumbling 37% yr/yr to $3.89. Meanwhile, sales took a 15% spill yr/yr to $4.92 bln, declining in line with estimates. A previously disclosed one-off supply chain disruption, which has since been resolved, partly hindered performance in the quarter.
- Looking ahead, management was realistic in its view of demand this year. CEO Marc Bitzer noted that the company expects consumer sentiment to continue negatively affecting demand, particularly in the first half of the year, gradually improving each quarter to exit 2023 with flat industry volumes. However, this commentary was consistent with what WHR outlined during its Q3 call in late October, illuminating that economic conditions have not deteriorated more meaningfully.
- WHR was slightly less enthusiastic in the short run, conceding that the sharp increase in mortgage rates has suppressed existing home sales. However, the company was optimistic that with equity staying strong, consumers may be reluctant to purchase a new home but more apt to use their equity to remodel their existing home. Additionally, WHR was buoyant regarding mid- and long-term trends, including an undersupplied, aging housing stock.
- Furthermore, raw materials costs are expected to ease throughout the year. This is already showing up in WHR's annual contracts as steel spot rates have fallen significantly. Resins and ocean freight costs are also anticipated to head lower, while the costs of several other commodities, such as nickel, stay elevated.
- In addition to WHR's reiterated $500 mln net cost takeout outlook for FY23, it is projecting $300-400 mln in raw material cost reductions, totaling $800-900 mln total cost target this year.
- An slight easing of economic hardships expected this year culminated in WHR's mostly upbeat FY23 outlook. The company expects adjusted EPS of $16.00-18.00 and revs of $19.40 bln.
Overall, Q4 results looked good against a gloomy demand backdrop, as did WHR's FY23 outlook. Unfortunately for the company, too many headwinds are proving to be a drag on the stock. We like seeing WHR repurchase $900 mln of stock during FY22 and increase its dividend (currently at a 4.5% yield) for the tenth straight year. However, it is important to note that if economic conditions worsen, WHR may be staring at a similar scenario as last year, trimming its full-year guidance each quarter.
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