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Markets Close Higher, Still Red for October; AMD, CZR Beat, Sell
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Markets closed higher for a second-straight day across the major indices, but remained in the red through the month of October. Following a +511-point gain yesterday, the Dow grew +123 points, +0.38%. The Nasdaq gained +61 points, +0.48%. The S&P 500 rose +0.65% and the small-cap Russell 2000 added +0.89%. However, in this third-straight month lower overall, through the full month we are -1.14% on the Dow, -2.21% on the S&P, -3.43% on the Nasdaq and -5.40% for the Russell.
Expectations for a pause in interest rate levels tomorrow when the Fed concludes its penultimate Federal Open Market Committee (FOMC) meeting of the year Wednesday afternoon may have a bit to do with markets catching a bid. A decent Q3 earnings season in its early stages and a somewhat oversold market from July yearly highs are other factors. High bond yield rates have done a bit of the Fed’s work for them, with the 10-year at 4.911% today and the 2-year 5.071%. We’re back to below 20 basis points (bps) on this yield curve, as well.
Earlier today, Case-Shiller Home Prices for August grew +2.2%, better than the +1.6% expected. This is the biggest monthly growth in home prices since January of this year, and is actually counter to what the Fed wants to see on this important inflation metric. The good news here is that cities that recently experienced big pricing gains and among the worst performers in this report: Las Vegas was -4.9% and Phoenix -3.9%, for instance. Chicago and New York grew the strongest, both +5% for the month.
Advanced Micro Devices (AMD - Free Report) shares are selling off nearly -5% following its Q3 earnings report out after the closing bell today. Earnings of 70 cents per share beat the Zacks consensus by 2 cents per share and revenues of $5.8 billion outpaced the $5.7 billion expected. Data Center and Client revenues performed well, but lowered guidance for next quarter/full year due to expected weakness in Gaming and Embedded (programmable chips) businesses took a bite out of shares, which had been trading north of +50% year to date.
First Solar (FSLR - Free Report) is trading flat in after-hours activity on mixed Q3 results this afternoon: earnings of $2.50 per share easily surpassed the $2.09 anticipated, but revenues of $801 million were well short of the $900.9 million analysts had been expecting. Full-year revenue guidance has stayed firm, however, though shares had traded up +4.5% during today’s normal session.
Caesars Entertainment (CZR - Free Report) also posted Q3 results after the bell today, beating on both top and bottom lines: earnings of 34 cents per share outpaced the 27 cents expected, while revenues of $2.99 billion in thew quarter came out ahead of the $2.91 billion in the Zacks consensus. EBITDA reached an all-time quarterly record of $1.04 billion in the quarter, with Digital adjusted EBITDA putting out an unexpected gain versus an anticipated loss.
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Markets Close Higher, Still Red for October; AMD, CZR Beat, Sell
Markets closed higher for a second-straight day across the major indices, but remained in the red through the month of October. Following a +511-point gain yesterday, the Dow grew +123 points, +0.38%. The Nasdaq gained +61 points, +0.48%. The S&P 500 rose +0.65% and the small-cap Russell 2000 added +0.89%. However, in this third-straight month lower overall, through the full month we are -1.14% on the Dow, -2.21% on the S&P, -3.43% on the Nasdaq and -5.40% for the Russell.
Expectations for a pause in interest rate levels tomorrow when the Fed concludes its penultimate Federal Open Market Committee (FOMC) meeting of the year Wednesday afternoon may have a bit to do with markets catching a bid. A decent Q3 earnings season in its early stages and a somewhat oversold market from July yearly highs are other factors. High bond yield rates have done a bit of the Fed’s work for them, with the 10-year at 4.911% today and the 2-year 5.071%. We’re back to below 20 basis points (bps) on this yield curve, as well.
Earlier today, Case-Shiller Home Prices for August grew +2.2%, better than the +1.6% expected. This is the biggest monthly growth in home prices since January of this year, and is actually counter to what the Fed wants to see on this important inflation metric. The good news here is that cities that recently experienced big pricing gains and among the worst performers in this report: Las Vegas was -4.9% and Phoenix -3.9%, for instance. Chicago and New York grew the strongest, both +5% for the month.
Advanced Micro Devices (AMD - Free Report) shares are selling off nearly -5% following its Q3 earnings report out after the closing bell today. Earnings of 70 cents per share beat the Zacks consensus by 2 cents per share and revenues of $5.8 billion outpaced the $5.7 billion expected. Data Center and Client revenues performed well, but lowered guidance for next quarter/full year due to expected weakness in Gaming and Embedded (programmable chips) businesses took a bite out of shares, which had been trading north of +50% year to date.
First Solar (FSLR - Free Report) is trading flat in after-hours activity on mixed Q3 results this afternoon: earnings of $2.50 per share easily surpassed the $2.09 anticipated, but revenues of $801 million were well short of the $900.9 million analysts had been expecting. Full-year revenue guidance has stayed firm, however, though shares had traded up +4.5% during today’s normal session.
Caesars Entertainment (CZR - Free Report) also posted Q3 results after the bell today, beating on both top and bottom lines: earnings of 34 cents per share outpaced the 27 cents expected, while revenues of $2.99 billion in thew quarter came out ahead of the $2.91 billion in the Zacks consensus. EBITDA reached an all-time quarterly record of $1.04 billion in the quarter, with Digital adjusted EBITDA putting out an unexpected gain versus an anticipated loss.
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