Major market indexes closed in the green Tuesday afternoon, beginning the day with a robust positive sentiment but reaching the closing bell barely skidding into home plate. The Dow came in +0.01% on the day, up 2 1/4 points. The S&P 500 also managed to end the day positive, +0.52% to 3401. The Nasdaq performed best for the day, +1.21%, up 134 points to 11,190. Communications Services led the way higher; Financials lagged.
Square (SQ - Free Report) gained 7% on the day, after the company introduced “Instant Payments” and “On-Demand Pay” features for paycheck deposit and faster access to wages for employees at companies using Square. The company’s FinTech products continue to prod investors toward companies like Square, +147% year to date, while companies like Citigroup (C - Free Report) fell 7% in Tuesday trading.
FedEx (FDX - Free Report) is up 4% after Tuesday’s close on its fiscal Q1 earnings report that was well beyond expectations: $4.87 per share stormed past the $2.54 in the Zacks consensus, as well as a big improvement’s from the year-ago quarter’s $3.05 per share. Revenues of $19.3 billion also easily surpassed the $17.5 billion analysts were expecting. Margins rose to 8.2%, also considerably higher than anticipated.
That said, the Zacks Rank #3 (Hold)-rated logistics and transportation major issued no guidance for the current fiscal year, based on what it called “continued uncertainties” pertaining to the current U.S. economy. FedEx shares have been on a roll of late — +40% in the last five weeks, making up lots of lost ground against its competition. This is the second-straight big earnings beat for the company, which had previously posted negative surprises in six of the last 10 quarters.
Adobe Systems (ADBE - Free Report) also released earnings results after the closing bell for its fiscal Q3, posting $2.57 per share which topped both the $2.40 expected and $2.05 per share reported a year ago. Revenues of $3.23 billion outpaced the estimated $3.15 billion, up 14% year over year. Subscription revenues rose higher that anticipated. Adobe has only missed once on quarterly earnings since Q4 2016, when we recalibrated earnings results from including stock-based compensation costs.
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