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U.S. stock markets recorded third straight winning season on Tuesday. Market participants were waiting for the midterm Congressional election result. Moreover, better-than-expected results for third quarter 2022 earnings results also boosted investors’ confidence on risky assets like equities. All the three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1% or 333.83 points to close at 33,160.83. Notably, 27 components of the 30-stock index ended in positive territory while three in red. The tech-heavy Nasdaq Composite finished at 10,616.20, rising 0.5% due to strong performance of large-cap technology stocks.
The S&P 500 gained 0.6% to end at 3,82811. Ten out of 11 broad sectors of the benchmark index closed in positive territory while one in red. The Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI), the Technology Select Sector SPDR (XLK) and Utilities Select Sector SPDR (XLU) advanced 1.7%, 1% 0.9% and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.9% to 25.54. A total of 11.7 billion shares were traded on Tuesday, lower than the last 20-session average of 11.7 billion. The S&P 500 posted 21 new 52-week highs and 9 new 52-week lows. The Nasdaq Composite registered 97 new 52-week highs and 258 new 52-week lows.
Midterm Election Results in Focus
The U.S. Congressional midterm election is scheduled on Nov 8. This election will be important to determine future course of the U.S. government spending. At present, democrats control the House of Representative and have a slender edge in the Senate.
Wall Street generally likes a split Congress. Currently, the United States is having democrat President. A Republican controlled House or Senate or both is likely to create a stalemate regarding future government spending. Lower or no government spending may result into reduced inflation and interest rates.
Q3 Earnings Season
We are in the middle of the third-quarter 2022 earnings season. So far, corporate America has shown mixed results. Although the earnings growth rate has declined systematically, margin pressures were less than expected.
As of Nov 4, 429 companies of the S&P 500 Index have reported results. Total earnings of these companies are up 2.2% from the same period last year on 11.4% higher revenues, with 70.9% beating EPS estimates and 67.8% beating revenue estimates. Our current estimate has projected that total earnings of the S&P 500 Index are expected to be up 1.6% year over year on 11.3% higher revenues.
Activision Blizzard Inc. came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.51 per share. ATVI, which belongs to the Zacks Toys - Games - Hobbies industry, posted revenues of $1.83 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 7.38%.
GLOBALFOUNDRIES Inc. (GFS - Free Report) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.62 per share. GFS, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $2.07 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 1.06%.
Image: Shutterstock
Stock Market News for Nov 9, 2022
U.S. stock markets recorded third straight winning season on Tuesday. Market participants were waiting for the midterm Congressional election result. Moreover, better-than-expected results for third quarter 2022 earnings results also boosted investors’ confidence on risky assets like equities. All the three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1% or 333.83 points to close at 33,160.83. Notably, 27 components of the 30-stock index ended in positive territory while three in red. The tech-heavy Nasdaq Composite finished at 10,616.20, rising 0.5% due to strong performance of large-cap technology stocks.
The S&P 500 gained 0.6% to end at 3,82811. Ten out of 11 broad sectors of the benchmark index closed in positive territory while one in red. The Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI), the Technology Select Sector SPDR (XLK) and Utilities Select Sector SPDR (XLU) advanced 1.7%, 1% 0.9% and 0.7%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.9% to 25.54. A total of 11.7 billion shares were traded on Tuesday, lower than the last 20-session average of 11.7 billion. The S&P 500 posted 21 new 52-week highs and 9 new 52-week lows. The Nasdaq Composite registered 97 new 52-week highs and 258 new 52-week lows.
Midterm Election Results in Focus
The U.S. Congressional midterm election is scheduled on Nov 8. This election will be important to determine future course of the U.S. government spending. At present, democrats control the House of Representative and have a slender edge in the Senate.
Wall Street generally likes a split Congress. Currently, the United States is having democrat President. A Republican controlled House or Senate or both is likely to create a stalemate regarding future government spending. Lower or no government spending may result into reduced inflation and interest rates.
Q3 Earnings Season
We are in the middle of the third-quarter 2022 earnings season. So far, corporate America has shown mixed results. Although the earnings growth rate has declined systematically, margin pressures were less than expected.
As of Nov 4, 429 companies of the S&P 500 Index have reported results. Total earnings of these companies are up 2.2% from the same period last year on 11.4% higher revenues, with 70.9% beating EPS estimates and 67.8% beating revenue estimates. Our current estimate has projected that total earnings of the S&P 500 Index are expected to be up 1.6% year over year on 11.3% higher revenues.
Activision Blizzard Inc. came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.51 per share. ATVI, which belongs to the Zacks Toys - Games - Hobbies industry, posted revenues of $1.83 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 7.38%.
GLOBALFOUNDRIES Inc. (GFS - Free Report) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.62 per share. GFS, which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $2.07 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 1.06%.
Consequently, shares of Activision Blizzard and GLOBALFOUNDRIES appreciated 1.3% and 8.6%, respectively. Both stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.