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Market indices closed in the green among three of the four majors, with only the small-cap Russell 2000 dropping -1.38% on the session, taking its year-to-date totals into the red with it. The others all rose marginally after a slight dip in the early afternoon. The Dow closed up +34 points, +0.10%, while the S&P 500 added +0.18%. The Nasdaq once again led the way, +0.30% on the day and back up over +30% year to date.
We imagine some profit-taking took place through the course of the trading session, after the markets’ strongest week in a year. Bond yields ticked back up today, as well, after dropping late last week; the 10-year is currently around 4.651% and the 2-year 4.939%. With the narrative currently that the Fed is done hiking interest rates for this cycle, it’s hard to see a lot more upward push on these valuations, but even where they are now they may provide an intriguing alternative of where to park one’s money.
Thus, even with tepid gains on the day, we’ve now set a new 6-week high on the Dow, and new 3-week highs on the S&P and Nasdaq. The coasting higher off last week’s momentum with vastly fewer points of impact this week from last appears to be intact so far this trading week, but it’s tough to plot a way forward without a lot of big-name companies reporting earnings or top-tier economic reports in terms of importance. The next time we get a Consumer Price Index (CPI) update, for instance, is not until a week from Tuesday.
Zacks Rank #1 (Strong Buy)-rated TripAdvisor (TRIP - Free Report) outperformed estimates on both top and bottom lines this afternoon after the close, with earnings of 52 cents per share surpassing the Zacks consensus by 4 cents, and well ahead of the 28 cents per share reported in the year-ago quarter. Revenues of $533 million climbed +16% year over year, with solid performances from experiences and TripAdvisor Core hotel meta. Shares are climbing nearly +9% in late trading, though still off its February highs for the year.
NXP Semiconductor (NXPI - Free Report) also beat estimates on both top and bottom lines this quarter Monday afternoon, posting earnings of $3.70 per share which outpaced the $3.58 expected, but was still beneath the year-ago quarter’s $3.81. Revenues of $3.43 billion outdid the $3.39 billion analysts were looking for. Its auto business was in-line, and industrials and mobile also performed pretty well. This makes four-straight earnings beats. For guidance, Q4 revenues look rather in-line with previous estimates, and flat year over year. Shares are up modestly on the news.
Tomorrow morning, Uber (UBER - Free Report) sets the earnings tone as it reports earnings before the market opens. Shares are up nearly 90% year to date for the Zacks Rank #1 stock. Earnings estimates look to come in more than +120% higher than the year-ago quarter. U.S. trade deficit and consumer credit, both for September, will also be reported Tuesday morning ahead of the opening bell.
Image: Bigstock
Markets Stay Green Amid Higher Bond Yields
Market indices closed in the green among three of the four majors, with only the small-cap Russell 2000 dropping -1.38% on the session, taking its year-to-date totals into the red with it. The others all rose marginally after a slight dip in the early afternoon. The Dow closed up +34 points, +0.10%, while the S&P 500 added +0.18%. The Nasdaq once again led the way, +0.30% on the day and back up over +30% year to date.
We imagine some profit-taking took place through the course of the trading session, after the markets’ strongest week in a year. Bond yields ticked back up today, as well, after dropping late last week; the 10-year is currently around 4.651% and the 2-year 4.939%. With the narrative currently that the Fed is done hiking interest rates for this cycle, it’s hard to see a lot more upward push on these valuations, but even where they are now they may provide an intriguing alternative of where to park one’s money.
Thus, even with tepid gains on the day, we’ve now set a new 6-week high on the Dow, and new 3-week highs on the S&P and Nasdaq. The coasting higher off last week’s momentum with vastly fewer points of impact this week from last appears to be intact so far this trading week, but it’s tough to plot a way forward without a lot of big-name companies reporting earnings or top-tier economic reports in terms of importance. The next time we get a Consumer Price Index (CPI) update, for instance, is not until a week from Tuesday.
Zacks Rank #1 (Strong Buy)-rated TripAdvisor (TRIP - Free Report) outperformed estimates on both top and bottom lines this afternoon after the close, with earnings of 52 cents per share surpassing the Zacks consensus by 4 cents, and well ahead of the 28 cents per share reported in the year-ago quarter. Revenues of $533 million climbed +16% year over year, with solid performances from experiences and TripAdvisor Core hotel meta. Shares are climbing nearly +9% in late trading, though still off its February highs for the year.
NXP Semiconductor (NXPI - Free Report) also beat estimates on both top and bottom lines this quarter Monday afternoon, posting earnings of $3.70 per share which outpaced the $3.58 expected, but was still beneath the year-ago quarter’s $3.81. Revenues of $3.43 billion outdid the $3.39 billion analysts were looking for. Its auto business was in-line, and industrials and mobile also performed pretty well. This makes four-straight earnings beats. For guidance, Q4 revenues look rather in-line with previous estimates, and flat year over year. Shares are up modestly on the news.
Tomorrow morning, Uber (UBER - Free Report) sets the earnings tone as it reports earnings before the market opens. Shares are up nearly 90% year to date for the Zacks Rank #1 stock. Earnings estimates look to come in more than +120% higher than the year-ago quarter. U.S. trade deficit and consumer credit, both for September, will also be reported Tuesday morning ahead of the opening bell.
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