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Wall Street closed mixed on Wednesday. Market participants remained concerned about the future of regional banks. On the other hand, strong earnings results by big techs boosted investors’ confidence on risky securities like equities. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 0.7% or 228.96 points to close at 33,301.87. Notably, 18 components of the 30-stock index ended in negative territory and 12 in positive zone. The tech-heavy Nasdaq Composite finished at 11,854.35, gaining 0.5% due to strong performance of large-cap technology stocks.
The S&P 500 fell 0.4% to end at 4,055.99. Ten out of 11 broad sectors of the benchmark index closed in negative territory while 1 in green. The Energy Select Sector SPDR (XLE), the Industrials Select Sector SPDR (XLI) and the Health Care Select Sector SPDR (XLV) slid 1.3%, 1.9% and 1.4%, respectively. On the other hand, the Technology Select Sector SPDR (XLK) increased 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 0.1% to 18.84. A total of 11.06 billion shares were traded on Wednesday, higher than the last 20-session average of 10.4 billion. Decliners outnumbered advancers on the NYSE by a 2.07-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored advancing issues.
Banking Sector Worries
Shares of First Republic Bank plummeted 29.8% after declining nearly 50% in the previous day after reporting 40% drop in its deposits in first-quarter 2023. Market participants remained highly concerned that this may create a domino effect on other regional banks.
Mixed Earnings Results
Microsoft Corp. (MSFT - Free Report) reported third-quarter fiscal 2023 earnings of $2.45 per share, which beat the Zacks Consensus Estimate by 10.4% and improved 10.4% on a year-over-year basis. Revenues of $52.8 billion increased 7.1% year over year and beat the Zacks Consensus Estimate by 3.78%. At constant currency, revenues increased 10% year over year.
Top-line growth was driven by improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing. Intelligent Cloud revenues increased in the quarter, driven by Azure and other cloud services. Productivity and Business Processes revenues increased due to the Office 365 Commercial. More Personal Computing revenues decreased due to Windows and Devices. Consequently, shares of Microsoft climbed 7.2%.
The Boeing Co. (BA - Free Report) incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of $0.98. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion. The stock price of Boeing increased 0.4%.
GSK plc (GSK - Free Report) reported first-quarter 2023 adjusted earnings of $0.9 per ADS, beating the Zacks Consensus Estimate of $0.85. Adjusted earnings rose 15% year over year on a reported basis and 7% at a constant exchange rate (CER).
Quarterly revenues declined 3% on a reported basis and 8% at CER to $8.48 billion (£6.95 billion), missing both the Zacks Consensus Estimate of $8.55 billion. The downside can be attributed to the declining sales of its COVID-19 antibody drug, Xevudy and unfavorable foreign exchange rates. Shares of GSK fell 2.7%.
All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
New orders for manufactured goods increased 3.2% in March, well above the consensus estimate of 0.5%. February’s data was revised downward to a decline of 1.2% from a drop of 1% reported earlier. Shipment of manufactured durable goods increased 1.1% in March. New orders of nondefense capital goods jumped 10.4% in March. Shipment of nondefense capital goods increased 3.6% in last month.
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Stock Market News for Apr 27, 2023
Wall Street closed mixed on Wednesday. Market participants remained concerned about the future of regional banks. On the other hand, strong earnings results by big techs boosted investors’ confidence on risky securities like equities. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 0.7% or 228.96 points to close at 33,301.87. Notably, 18 components of the 30-stock index ended in negative territory and 12 in positive zone. The tech-heavy Nasdaq Composite finished at 11,854.35, gaining 0.5% due to strong performance of large-cap technology stocks.
The S&P 500 fell 0.4% to end at 4,055.99. Ten out of 11 broad sectors of the benchmark index closed in negative territory while 1 in green. The Energy Select Sector SPDR (XLE), the Industrials Select Sector SPDR (XLI) and the Health Care Select Sector SPDR (XLV) slid 1.3%, 1.9% and 1.4%, respectively. On the other hand, the Technology Select Sector SPDR (XLK) increased 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was up 0.1% to 18.84. A total of 11.06 billion shares were traded on Wednesday, higher than the last 20-session average of 10.4 billion. Decliners outnumbered advancers on the NYSE by a 2.07-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored advancing issues.
Banking Sector Worries
Shares of First Republic Bank plummeted 29.8% after declining nearly 50% in the previous day after reporting 40% drop in its deposits in first-quarter 2023. Market participants remained highly concerned that this may create a domino effect on other regional banks.
Mixed Earnings Results
Microsoft Corp. (MSFT - Free Report) reported third-quarter fiscal 2023 earnings of $2.45 per share, which beat the Zacks Consensus Estimate by 10.4% and improved 10.4% on a year-over-year basis. Revenues of $52.8 billion increased 7.1% year over year and beat the Zacks Consensus Estimate by 3.78%. At constant currency, revenues increased 10% year over year.
Top-line growth was driven by improvement in Intelligent Cloud and Productivity and Business Processes, offset in part by a decline in More Personal Computing. Intelligent Cloud revenues increased in the quarter, driven by Azure and other cloud services. Productivity and Business Processes revenues increased due to the Office 365 Commercial. More Personal Computing revenues decreased due to Windows and Devices. Consequently, shares of Microsoft climbed 7.2%.
The Boeing Co. (BA - Free Report) incurred an adjusted loss of $1.27 per share for first-quarter 2023, wider than the Zacks Consensus Estimate of a loss of $0.98. The bottom line, however, improved from the year-ago quarter’s loss of $2.75 per share.
Boeing’s revenues amounted to $17.92 billion, which beat the Zacks Consensus Estimate of $17.36 billion. The top line also improved 28% from the year-ago quarter’s reported figure of $13.99 billion. The stock price of Boeing increased 0.4%.
GSK plc (GSK - Free Report) reported first-quarter 2023 adjusted earnings of $0.9 per ADS, beating the Zacks Consensus Estimate of $0.85. Adjusted earnings rose 15% year over year on a reported basis and 7% at a constant exchange rate (CER).
Quarterly revenues declined 3% on a reported basis and 8% at CER to $8.48 billion (£6.95 billion), missing both the Zacks Consensus Estimate of $8.55 billion. The downside can be attributed to the declining sales of its COVID-19 antibody drug, Xevudy and unfavorable foreign exchange rates. Shares of GSK fell 2.7%.
All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
New orders for manufactured goods increased 3.2% in March, well above the consensus estimate of 0.5%. February’s data was revised downward to a decline of 1.2% from a drop of 1% reported earlier. Shipment of manufactured durable goods increased 1.1% in March. New orders of nondefense capital goods jumped 10.4% in March. Shipment of nondefense capital goods increased 3.6% in last month.