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U.S. stocks closed mixed on Friday after gaining over two consecutive winning sessions. However, movements of indexes were modest in either direction. Strong earnings results from large-cap technology and Internet companies boosted investors’ sentiment in the mid-day trading. However, the markets shed most of their gains as soft U.S. GDP data and tepid earnings reports from energy sector tumbled the stocks.
The Dow Jones Industrial Average (DJI) closed at 24,311.19, declining 0.05%. The S&P 500 Index (INX) increased 0.11% to close at 2,669.91. The Nasdaq Composite Index (IXIC) closed at 7,119.80, increasing 0.02%. A total of 6.13 billion shares were traded on Friday, lower than the last 20-session average of 6.62 billion shares. Advancers outnumbered decliners on the NYSE by 1.42 -to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.07 to -1 ratio. The CBOE VIX decreased 5.1% and closed at 15.41.
How Did the Benchmarks Perform?
The Dow decreased 0.1% with half of the 30-stock index closing in the green while remaining fifteen stocks traded in the red. The blue-chip index fell in the negative territory primarily due to tepid earnings results from Exoon Mobil Corp. (XOM - Free Report) .
The S&P 500 increased 0.1% led by 1.3% gain of the Real Estate Select Sector SPDR (XLRE) and a 1% increase of Utilities Select Sector SPDR (XLU) partially offset by a 1% decline of the Energy Select Sector SPDR (XLE). Seven out of 11 sectors of the benchmark index ended in positive territory with. The index recorded 17 new 52-week highs and 7 new 52-week lows.
The Nasdaq Composite gained 1.12%. Better-than-expected results from large-cap tech stocks help the tech-heavy index to gain marginally. The index recorded 60 new 52-week highs and 57 new 52-week lows.
Tech Stocks Post Strong Earnings
Several large-cap tech and Internet companies as well as energy companies posted strong first-quarter 2018 earnings results.
The share price of Amazon.com Inc. (AMZN - Free Report) rose 3.6% as the e-commerce powerhouse reported blockbuster first quarter results. Adjusted Q1 earnings of $3.27 per share crushed Zacks Consensus Estimate of $1.22 per share. Total revenues surged 43% to $51.04 billion. This also beat $50.17 billion consensus estimate. (Read More). Amazon hits an all-time intraday high record of $1,638.10 in early trading. However, it failed to maintain the momentum and closed at 1,572.62.
The share price of Microsoft Corp. (MSFT - Free Report) rose 1.7% as the software giant reported strong first quarter results. Microsoft’s adjusted quarterly earnings surged 36% from the year-ago period to hit $0.95 per share, which handily topped our Zacks Consensus Estimate of $0.85 per share. Meanwhile, the company’s overall revenues also beat our estimate and popped 16% to reach $26.82 billion. (Read More).
The share price of energy major Chevron Corp. (CVX - Free Report) rose 1.9% despite the fact that the company reported mixed earnings results. Earnings per share of 1.90 were higher than the Zacks Consensus Estimate of $1.45. Chevron posted revenues of $37,764 million, below the Zacks Consensus Estimate of $38,740 million. (Read More).
The U.S. stock markets remain less enthusiastic despite strong showing by the large corporates in first quarter. Slowdown of U.S. GDP’s growth pace and expectations about an impending inflation pull down investors’ sentiment.
As per the first estimate of the Bureau of Economic Analysis, the U.S. GDP will grow at 2.3%, higher than the consensus estimate of 2%. However, first quarter’s projected growth rate was much lower than the fourth quarter 2017 GDP growth of 2.9% and nowhere near President Trump’s annual GDP growth rate of 3%.
Personal Consumer spending, which constitute 70% of the U.S. economy, grew at 1.1% in the first-quarter 2018. It was the slowest pace of growth in nearly 5 years and significantly below the last reported quarter’s growth of a massive 4%.
Meanwhile, gross private domestic investment grew 7.3% compared with 4.7% in the previous quarter and a negative 1.2% in the prior-year quarter.
Additionally, weak earnings results of energy behemoth Exoon Mobil concerns investors.
The share price of Exoon Mobil decreased 3.8% as the company reported mixed first quarter results. The company reported earnings of $1.09 per share, which missed the Zacks Consensus Estimate of $1.14. Total revenues in the quarter rose to $68,211 million surpassing the Zacks Consensus Estimate of $66,070 million. (Read More).
The share price of Intel Corp. (INTC - Free Report) declined 0.6% despite strong earnings results from the chipset giant. The company delivered first-quarter 2018 non-GAAP earnings of $0.87 per share, which beat the Zacks Consensus Estimate by $0.16. Revenues totaled $16.07 billion surpassing the Zacks Consensus Estimate of $15.03 billion. (Read More). However, both net earnings and revenues decline sequentially, which prompted investors to sell-off the stock.
Weekly Roundup
For the week, all the three major benchmarks decreased. The Dow, the S&P 500 and the Nasdaq lost 0.62%, 0.01% and 0.37% respectively. Investors remain concerned that Apple Inc.’s (AAPL - Free Report) iPhone sales may fell below expectations in the second quarter. Meanwhile, Caterpillar Inc.’s (CAT - Free Report) forecast that economic growth might decelerate later this year.
Markets ended mixed on Monday, as tech stocks continued to suffer and rising bond yields dented investors’ confidence. However, markets ended in negative territory on Tuesday after the 10-year Treasury yield briefly hit the psychological 3% mark for the first time since January 2014.
The Dow and S&P 500 bounced back on Wednesday and all the major indexes closed higher on Thursday on the back of strong first quarter earnings results.
United Continental Holdings, Inc.’s (UAL - Free Report) wholly owned subsidiary, United Airlines, has increased its stake in the Brazilian carrier, Azul S.A. (AZUL - Free Report) . (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stock Market News For Apr 30, 2018
U.S. stocks closed mixed on Friday after gaining over two consecutive winning sessions. However, movements of indexes were modest in either direction. Strong earnings results from large-cap technology and Internet companies boosted investors’ sentiment in the mid-day trading. However, the markets shed most of their gains as soft U.S. GDP data and tepid earnings reports from energy sector tumbled the stocks.
The Dow Jones Industrial Average (DJI) closed at 24,311.19, declining 0.05%. The S&P 500 Index (INX) increased 0.11% to close at 2,669.91. The Nasdaq Composite Index (IXIC) closed at 7,119.80, increasing 0.02%. A total of 6.13 billion shares were traded on Friday, lower than the last 20-session average of 6.62 billion shares. Advancers outnumbered decliners on the NYSE by 1.42 -to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.07 to -1 ratio. The CBOE VIX decreased 5.1% and closed at 15.41.
How Did the Benchmarks Perform?
The Dow decreased 0.1% with half of the 30-stock index closing in the green while remaining fifteen stocks traded in the red. The blue-chip index fell in the negative territory primarily due to tepid earnings results from Exoon Mobil Corp. (XOM - Free Report) .
The S&P 500 increased 0.1% led by 1.3% gain of the Real Estate Select Sector SPDR (XLRE) and a 1% increase of Utilities Select Sector SPDR (XLU) partially offset by a 1% decline of the Energy Select Sector SPDR (XLE). Seven out of 11 sectors of the benchmark index ended in positive territory with. The index recorded 17 new 52-week highs and 7 new 52-week lows.
The Nasdaq Composite gained 1.12%. Better-than-expected results from large-cap tech stocks help the tech-heavy index to gain marginally. The index recorded 60 new 52-week highs and 57 new 52-week lows.
Tech Stocks Post Strong Earnings
Several large-cap tech and Internet companies as well as energy companies posted strong first-quarter 2018 earnings results.
The share price of Amazon.com Inc. (AMZN - Free Report) rose 3.6% as the e-commerce powerhouse reported blockbuster first quarter results. Adjusted Q1 earnings of $3.27 per share crushed Zacks Consensus Estimate of $1.22 per share. Total revenues surged 43% to $51.04 billion. This also beat $50.17 billion consensus estimate. (Read More). Amazon hits an all-time intraday high record of $1,638.10 in early trading. However, it failed to maintain the momentum and closed at 1,572.62.
The share price of Microsoft Corp. (MSFT - Free Report) rose 1.7% as the software giant reported strong first quarter results. Microsoft’s adjusted quarterly earnings surged 36% from the year-ago period to hit $0.95 per share, which handily topped our Zacks Consensus Estimate of $0.85 per share. Meanwhile, the company’s overall revenues also beat our estimate and popped 16% to reach $26.82 billion. (Read More).
The share price of energy major Chevron Corp. (CVX - Free Report) rose 1.9% despite the fact that the company reported mixed earnings results. Earnings per share of 1.90 were higher than the Zacks Consensus Estimate of $1.45. Chevron posted revenues of $37,764 million, below the Zacks Consensus Estimate of $38,740 million. (Read More).
Markets Remain Volatile Despite Solid Corporate Earnings
The U.S. stock markets remain less enthusiastic despite strong showing by the large corporates in first quarter. Slowdown of U.S. GDP’s growth pace and expectations about an impending inflation pull down investors’ sentiment.
As per the first estimate of the Bureau of Economic Analysis, the U.S. GDP will grow at 2.3%, higher than the consensus estimate of 2%. However, first quarter’s projected growth rate was much lower than the fourth quarter 2017 GDP growth of 2.9% and nowhere near President Trump’s annual GDP growth rate of 3%.
Personal Consumer spending, which constitute 70% of the U.S. economy, grew at 1.1% in the first-quarter 2018. It was the slowest pace of growth in nearly 5 years and significantly below the last reported quarter’s growth of a massive 4%.
Meanwhile, gross private domestic investment grew 7.3% compared with 4.7% in the previous quarter and a negative 1.2% in the prior-year quarter.
Additionally, weak earnings results of energy behemoth Exoon Mobil concerns investors.
The share price of Exoon Mobil decreased 3.8% as the company reported mixed first quarter results. The company reported earnings of $1.09 per share, which missed the Zacks Consensus Estimate of $1.14. Total revenues in the quarter rose to $68,211 million surpassing the Zacks Consensus Estimate of $66,070 million. (Read More).
The share price of Intel Corp. (INTC - Free Report) declined 0.6% despite strong earnings results from the chipset giant. The company delivered first-quarter 2018 non-GAAP earnings of $0.87 per share, which beat the Zacks Consensus Estimate by $0.16. Revenues totaled $16.07 billion surpassing the Zacks Consensus Estimate of $15.03 billion. (Read More). However, both net earnings and revenues decline sequentially, which prompted investors to sell-off the stock.
Weekly Roundup
For the week, all the three major benchmarks decreased. The Dow, the S&P 500 and the Nasdaq lost 0.62%, 0.01% and 0.37% respectively. Investors remain concerned that Apple Inc.’s (AAPL - Free Report) iPhone sales may fell below expectations in the second quarter. Meanwhile, Caterpillar Inc.’s (CAT - Free Report) forecast that economic growth might decelerate later this year.
Markets ended mixed on Monday, as tech stocks continued to suffer and rising bond yields dented investors’ confidence. However, markets ended in negative territory on Tuesday after the 10-year Treasury yield briefly hit the psychological 3% mark for the first time since January 2014.
The Dow and S&P 500 bounced back on Wednesday and all the major indexes closed higher on Thursday on the back of strong first quarter earnings results.
Stock That Made Headlines
United Continental Arm Ups Azul Stake to 8%, Shares Up
United Continental Holdings, Inc.’s (UAL - Free Report) wholly owned subsidiary, United Airlines, has increased its stake in the Brazilian carrier, Azul S.A. (AZUL - Free Report) . (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>