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U.S. stock markets closed lower on Thursday following disappointing earnings results from several U.S. corporate behemoths. Market participants remained highly concerned as U.S. corporates are witnessing margin pressures. Moreover, various weak economic data also raised investors’ fear about a near-term recession. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.3% or 110.39 points to close at 33,786.62. The blue-chip index posted a three-day losing streak. Notably, 24 components of the 30-stock index ended in negative territory and 6 in positive zone.
The tech-heavy Nasdaq Composite finished at 12,059.56, dropping 0.8% due to weak performance of large-cap technology stocks. The S&P 500 slid 0.6% to end at 4,129.79, marking its biggest single-day decline since Mar 22.
Ten out of 11 broad sectors of the benchmark index closed in negative territory while one in green. The Consumer Discretionary Select Sector SPDR (XLY), the Real Estate Select Sector SPDR (XLRE) and the Communication Services Select Sector SPDR (XLC) dropped 1.5%, 1.2% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.3% to 17.17. A total of 9.9 billion shares were traded on Thursday, lower than the last 20-session average of 10.5 billion. Decliners outnumbered advancers on the NYSE by a 1.74-to-1 ratio. On Nasdaq, a 1.79-to-1 ratio favored declining issues.
Disappointing Earnings Results
Electric Vehicle behemoth Tesla Inc. (TSLA - Free Report) reported first-quarter 2023 adjusted earnings per share of $0.85, beating the Zacks Consensus Estimate of $0.83. However, adjusted EPS was $1.07 in the year-ago quarter. On the other hand, total revenue was $23,329 million, rising 24% year over year but fell below the Zacks Consensus Estimate of $23,472 million.
Tesla’s net income plummeted 24% to $2.51 billion or $0.73 per share, from $3.32 billion or $0.95 per share, in the year-ago quarter. The company said that “underutilization of new factories” stressed margins, along with higher raw material, commodity, logistics and warranty costs. Moreover, lower revenue from environmental credits also contributed to earnings decline. Shares of Tesla plummeted 9.8%.
Telecommunication giant AT&T Inc. (T - Free Report) reported first-quarter 2023 adjusted earnings per share of $0.60, beating the Zacks Consensus Estimate of $0.58. However, adjusted EPS was $0.63 in the year-ago quarter. On the other hand, total revenue was $30,139 million, rising 1.4% year over year but fell below the Zacks Consensus Estimate of $30,344 million. Shares of AT&T plunged 10.4%.
Pool Corp. (POOL - Free Report) , world's largest wholesale distributor of swimming pool supplies, equipment and related products, reported first-quarter 2023 adjusted earnings per share of $2.46, missing the Zacks Consensus Estimate of $3.26. Adjusted EPS was $4.41 in the year-ago quarter. Total revenue was $1.21 billion, lagging the Zacks Consensus Estimate of $1.41 billion. Shares of POOL fell 1.9%.
The Department of Labor reported that weekly jobless claims increased 5,000 to 245,000 for the week ended Apr 15, higher than the consensus estimate of 244,000. Previous week’s data was revised marginally upward from 240,000 to 239,000. Continuing Claims (those who already received government benefit) for the week ended Apr 8, came in at 1.865 million — a increase of 61,000 from downward revision of 1.804 million in the previous week. This marked the highest level of continuing claims since Nov 27, 2021.
The National Association of Realtors reported that existing home sales in March came in at 4.44 million units, missing the consensus estimate of 4.49 million units. February’s data was revised downward to 4.55 million units from 4.59 million units reported earlier.
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Stock Market News for Apr 21, 2023
U.S. stock markets closed lower on Thursday following disappointing earnings results from several U.S. corporate behemoths. Market participants remained highly concerned as U.S. corporates are witnessing margin pressures. Moreover, various weak economic data also raised investors’ fear about a near-term recession. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.3% or 110.39 points to close at 33,786.62. The blue-chip index posted a three-day losing streak. Notably, 24 components of the 30-stock index ended in negative territory and 6 in positive zone.
The tech-heavy Nasdaq Composite finished at 12,059.56, dropping 0.8% due to weak performance of large-cap technology stocks. The S&P 500 slid 0.6% to end at 4,129.79, marking its biggest single-day decline since Mar 22.
Ten out of 11 broad sectors of the benchmark index closed in negative territory while one in green. The Consumer Discretionary Select Sector SPDR (XLY), the Real Estate Select Sector SPDR (XLRE) and the Communication Services Select Sector SPDR (XLC) dropped 1.5%, 1.2% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.3% to 17.17. A total of 9.9 billion shares were traded on Thursday, lower than the last 20-session average of 10.5 billion. Decliners outnumbered advancers on the NYSE by a 1.74-to-1 ratio. On Nasdaq, a 1.79-to-1 ratio favored declining issues.
Disappointing Earnings Results
Electric Vehicle behemoth Tesla Inc. (TSLA - Free Report) reported first-quarter 2023 adjusted earnings per share of $0.85, beating the Zacks Consensus Estimate of $0.83. However, adjusted EPS was $1.07 in the year-ago quarter. On the other hand, total revenue was $23,329 million, rising 24% year over year but fell below the Zacks Consensus Estimate of $23,472 million.
Tesla’s net income plummeted 24% to $2.51 billion or $0.73 per share, from $3.32 billion or $0.95 per share, in the year-ago quarter. The company said that “underutilization of new factories” stressed margins, along with higher raw material, commodity, logistics and warranty costs. Moreover, lower revenue from environmental credits also contributed to earnings decline. Shares of Tesla plummeted 9.8%.
Telecommunication giant AT&T Inc. (T - Free Report) reported first-quarter 2023 adjusted earnings per share of $0.60, beating the Zacks Consensus Estimate of $0.58. However, adjusted EPS was $0.63 in the year-ago quarter. On the other hand, total revenue was $30,139 million, rising 1.4% year over year but fell below the Zacks Consensus Estimate of $30,344 million. Shares of AT&T plunged 10.4%.
Pool Corp. (POOL - Free Report) , world's largest wholesale distributor of swimming pool supplies, equipment and related products, reported first-quarter 2023 adjusted earnings per share of $2.46, missing the Zacks Consensus Estimate of $3.26. Adjusted EPS was $4.41 in the year-ago quarter. Total revenue was $1.21 billion, lagging the Zacks Consensus Estimate of $1.41 billion. Shares of POOL fell 1.9%.
All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Department of Labor reported that weekly jobless claims increased 5,000 to 245,000 for the week ended Apr 15, higher than the consensus estimate of 244,000. Previous week’s data was revised marginally upward from 240,000 to 239,000. Continuing Claims (those who already received government benefit) for the week ended Apr 8, came in at 1.865 million — a increase of 61,000 from downward revision of 1.804 million in the previous week. This marked the highest level of continuing claims since Nov 27, 2021.
The National Association of Realtors reported that existing home sales in March came in at 4.44 million units, missing the consensus estimate of 4.49 million units. February’s data was revised downward to 4.55 million units from 4.59 million units reported earlier.