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Dow Up 10 Straight Sessions; NXPI Beats, WHR Mixed
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Major market indices all closed in the green today, with the Nasdaq mostly shrugging off its Nasdaq-100 rebalance for the “Magnificent 7” stocks which together had grown to more than 50% of the sub-index’s valuation. Meanwhile, the Dow notched its 10th straight session higher as it led the pack, +185 points, +0.53%. The Nasdaq took the rear, likely based somewhat on the rebalancing: +0.19%. The S&P 500 and the small-cap Russell 2000 gained +0.41% and +0.27%, respectively.
S&P “flash” PMI prints for July came out earlier today, with Manufacturing higher than expectations to +49.0 from +46.3 the previous month, and Services reaching 52.4, which was below the estimated 54.0 and the unrevised 54.4 posted for June. Generally speaking, these two metrics are pointed in the directions we’d expected, though incrementally more pronounced than we’d been looking for: the Manufacturing side is getting much closer to the breakeven 50, while Services remain comfortably above this level.
We’ve already heard from FedEx (FDX - Free Report) this earnings season, but today its pilots union rejected a tentative agreement for a new contract, and news reports are that a strike may be imminent. FedEx’s Business shipping reported made up +42% of revenues in Q1, so this is not insignificant. Rival United Parcel Service (UPS), which does not report Q2 earnings until August 8th, may have caught a bid today based on this potential headwind for FedEx.
NXP Semiconductor (NXPI - Free Report) beats estimates on both top and bottom lines this afternoon, with earnings of $3.43 per share on quarterly revenues of $3.3 billion, nicely higher than the expected $3.27 per share and $3.2 billion expected, respectively. Ahead of the print, its auto business concerns gave way to a stronger performance in the quarter, while full-year revenue guidance was boosted to $3.3-3.5 billion from $3.27 billion earlier this quarter. Shares are up +1% at this hour on the news.
Whirlpool (WHR - Free Report) had a mixed Q2, as reported after today’s closing bell: earnings of $4.21 per share sped past the $3.80 Zacks consensus, but $4.79 billion in quarterly sales was notably below the $4.90 billion analysts had been looking for. That said, the company’s CEO announced, “We are well-positioned to benefit from the housing-driven demand recovery,” even as the company’s revenue guidance for the full year is now below the Zacks consensus to $19.4 billion. Shares initially broke toward the positive on the news, but are now trading -1%.
Tomorrow brings us a full compliment of Q2 earnings reports, headlined by Microsoft (MSFT - Free Report) and Alphabet (GOOGL) after Tuesday’s close. We’ll also get a look at General Electric (GE - Free Report) , General Motors (GM - Free Report) , Snap (SNAP - Free Report) , Visa (V - Free Report) and Texas Instruments (TXN - Free Report) , to name but a few. We’ll also see the Case-Shiller home price index and a new Consumer Confidence survey, both out tomorrow morning. The latest Fed meeting also commences tomorrow, which is expected to culminate Wednesday in a fresh 25 basis-point interest rate hike, which at 5.25-5.50% will be the highest Fed funds rate since early 2001.
Image: Bigstock
Dow Up 10 Straight Sessions; NXPI Beats, WHR Mixed
Major market indices all closed in the green today, with the Nasdaq mostly shrugging off its Nasdaq-100 rebalance for the “Magnificent 7” stocks which together had grown to more than 50% of the sub-index’s valuation. Meanwhile, the Dow notched its 10th straight session higher as it led the pack, +185 points, +0.53%. The Nasdaq took the rear, likely based somewhat on the rebalancing: +0.19%. The S&P 500 and the small-cap Russell 2000 gained +0.41% and +0.27%, respectively.
S&P “flash” PMI prints for July came out earlier today, with Manufacturing higher than expectations to +49.0 from +46.3 the previous month, and Services reaching 52.4, which was below the estimated 54.0 and the unrevised 54.4 posted for June. Generally speaking, these two metrics are pointed in the directions we’d expected, though incrementally more pronounced than we’d been looking for: the Manufacturing side is getting much closer to the breakeven 50, while Services remain comfortably above this level.
We’ve already heard from FedEx (FDX - Free Report) this earnings season, but today its pilots union rejected a tentative agreement for a new contract, and news reports are that a strike may be imminent. FedEx’s Business shipping reported made up +42% of revenues in Q1, so this is not insignificant. Rival United Parcel Service (UPS), which does not report Q2 earnings until August 8th, may have caught a bid today based on this potential headwind for FedEx.
NXP Semiconductor (NXPI - Free Report) beats estimates on both top and bottom lines this afternoon, with earnings of $3.43 per share on quarterly revenues of $3.3 billion, nicely higher than the expected $3.27 per share and $3.2 billion expected, respectively. Ahead of the print, its auto business concerns gave way to a stronger performance in the quarter, while full-year revenue guidance was boosted to $3.3-3.5 billion from $3.27 billion earlier this quarter. Shares are up +1% at this hour on the news.
Whirlpool (WHR - Free Report) had a mixed Q2, as reported after today’s closing bell: earnings of $4.21 per share sped past the $3.80 Zacks consensus, but $4.79 billion in quarterly sales was notably below the $4.90 billion analysts had been looking for. That said, the company’s CEO announced, “We are well-positioned to benefit from the housing-driven demand recovery,” even as the company’s revenue guidance for the full year is now below the Zacks consensus to $19.4 billion. Shares initially broke toward the positive on the news, but are now trading -1%.
Tomorrow brings us a full compliment of Q2 earnings reports, headlined by Microsoft (MSFT - Free Report) and Alphabet (GOOGL) after Tuesday’s close. We’ll also get a look at General Electric (GE - Free Report) , General Motors (GM - Free Report) , Snap (SNAP - Free Report) , Visa (V - Free Report) and Texas Instruments (TXN - Free Report) , to name but a few. We’ll also see the Case-Shiller home price index and a new Consumer Confidence survey, both out tomorrow morning. The latest Fed meeting also commences tomorrow, which is expected to culminate Wednesday in a fresh 25 basis-point interest rate hike, which at 5.25-5.50% will be the highest Fed funds rate since early 2001.
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