Good Evening! On Thursday, markets posted a reversal of initial gains. The backsliding occurred despite growing optimism that the Federal Reserve will refrain from further interest rate hikes in the current year. That seems to be the market’s opinion. Some around this office think we have one more rate hike in 2023.
The S&P 500 declined 0.64%, while the Nasdaq Composite fell 0.55%. The Dow Jones ended its most extended period of consecutive gains since 1987 with a drop of 0.67%.
SLOW EV START
Ford (F) experienced an increase in after-hours trading following the automaker’s release of robust second-quarter earnings and an upward revision of its full-year profit forecast. However, it is important to note that Ford has projected more significant annual losses within its electric vehicle (EV) division.
- Revenue: $45 Billion vs. $40.17 Billion Expected
- Earnings Per Share: $0.72 vs. $0.54 Expected
How bad did the EV division do? The company reported a decline of 2.8% in EV sales for the quarter. Specifically, sales of the Mustang Mach-E experienced a decrease of 21.1%, while sales of the E-Transit electric van declined by 23.8%. However, Ford reported that sales of the Mach-E experienced an acceleration towards the end of the second quarter.
Regarding the full-year forecast… Ford has revised its projected adjusted Earning Before Interest and Tax (EBIT) for 2023, increasing it to a range of $11 billion to $12 billion. This adjustment represents a revision from the previous estimate of $9 billion to $11 billion. Additionally, Ford has revised its adjusted free cash flow forecast, increasing it to a range of $6.5 billion to $7 billion, as compared to the previous projection of $6 billion.
DONT FORGET TO TAKE THEM!
GoodRx (GDRX) is introducing a virtual medicine cabinet functionality, initially available on the Apple Store (APPL) and eventually on Android, to support users in effectively monitoring and replenishing their routine prescriptions.
So what does the free app do? It establishes a connection to GoodRx’s discount pharmacy card platform, enabling users to easily replenish their prescription medications. In addition, the newly developed application provides GoodRx users with an additional means of exploring affordable alternatives. In addition to its primary function, the medicine cabinet also incorporates features such as daily pill reminders and a points-based system that enables users to accumulate rewards for cost savings.
Has anyone actually been using it? According to a statement released by the company, initial usage of the tool showed a noteworthy 40% rise in the number of prescription fills in comparison to non-registered GoodRx users. The medicine cabinet additionally serves the purpose of promoting adherence to prescribed medications among users, which in turn helps prevent health issues that are more expensive and can be catastrophic.