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Benchmarks finished in the green on Tuesday, following the release of strong earnings reports and as expectation for possible tax reform grew. Earnings for the Dow were particularly strong, with four of its five components exceeding expectations. The Nasdaq closed above 6,000 for the first time ever since its inception in 1971. Meanwhile, sales of newly-constructed homes in March increased 5.8% above its revised February rate.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) rose 232.23 points or 1.1% to close at 20,996.12. The surge helped the Dow to reach 0.6% below its all time closing high, which was set on March 1. The S&P 500 advanced 0.6% to close at 2,388.61. The S&P 500 finished only 0.3% below its record close on March 1. The tech-laden Nasdaq Composite Index gained 0.7% to a record close at 6,025.49. As per Dow Jones data, Nasdaq took 4,308 trading-sessions to move from one 1,000-point milestone to the next. The fear-gauge CBOE Volatility Index (VIX) declined 2.1% to 10.61. A total of around 4 billion shares were traded in NYSE on Tuesday. Advancers outpaced declining stocks on the NYSE. For 65% stocks that advanced, 31% declined.
Earnings Season
Caterpillar Inc. (CAT - Free Report) more than doubled earning expectations after posting first-quarter 2017 earnings per share of $1.28, beating the Zacks Consensus Estimate of $0.62. The company reported revenues of $9.82 billion which increased from $9.46 billion in the year-earlier period. The company benefited from its cost reduction and restructuring policies, which strengthened its balance sheet and improved cash flow. Shares of Caterpillar jumped 7.9% which added about 32 points to the Dow.
McDonald's Corporation (MCD - Free Report) posted first-quarter earnings of $1.47 per share surpassing the $1.32 expected. Moreover, the company reported revenues of $5.676 billion, beating the Zacks consensus Estimate of$5.48 billion. According to the company, changes to its menu and convenience initiatives boosted its performance. Shares of McDonald's gained 5.6%.
DuPont (DD - Free Report) posted adjusted earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.38. The company reported net sales of $7,743 million, up roughly 5% year over year. That also beat the Zacks Consensus Estimate of $7,539 million. The company benefited from its aggressive cost-saving and productivity measures.Shares of DuPont advanced 3.6%.
3M Co (MMM - Free Report) reported first quarter 2017 earnings of $2.16 per share compared to its earnings of $2.05 per share reported in the year-earlier quarter. The company posted revenue of $7.69 billion which was up from its revenue of $7.41 billion in first quarter of previous year. Shares of 3M Co gained 0.5%.
Biogen Inc (BIIB - Free Report) reported better-than expected first quarter 2017 earnings. Biogen posted earnings of $5.20 per share outpacing the Zacks Consensus Estimate of $4.97. The company posted revenues of $2.81 billion, beating the consensus estimate of $2.73 billion. Shares of the biotechnology company advanced 3.6% and emerged as one of the best performers for the Nasdaq.
However, The Coca-Cola Co (KO - Free Report) failed to meet earnings expectations in the first quarter of 2017. The company posted adjusted earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44. Though, net revenue declined 11% year over year to $9.12 billion due to currency headwinds and the negative impact of structural items, revenues surpassed the Zacks Consensus Estimate of $8.97 billion.
President Donald Trump commented on Friday that he would unveil a massive tax cut on Wednesday in an attempt to relieve individuals and businesses from tax burdens. Trump asked White House aides to go faster with their efforts to reduce the corporate income tax rate to 15% from 35%. Expectations for a possible corporate tax cuts lifted investor confidence which ultimately helped stocks to gain.
Economic Data
As per estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of newly-constructed houses in March 2017 were at a seasonally adjusted annual rate of 621,000. The figure is 5.8% above the revised February rate of 587,000 and it also beat the Zacks Consensus Estimate of584,000.
However, consumer confidence fell in April to 120.3 from 124.9 in March and failed to meetthe Zacks Consensus Estimate level of 123.8.
Offshore oil and gas-focused engineering and construction firm McDermott International Inc. reported earnings of 8 cents per share in first-quarter 2017, higher than the Zacks Consensus Estimate of 1 cent. (Read More)
Shares of Chipotle Mexican Grill, Inc. (CMG - Free Report) gained nearly 3% in afterhours trading on Apr 25, after the company reported better-than-expected results in first-quarter 2017. (Read More)
Baxter International Inc. (BAX - Free Report) reported first-quarter 2017 adjusted earnings of 58 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was way better than the year-ago figure of 36 cents. (Read More)
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum from stocks under $10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Stock Market News for April 26, 2017
Benchmarks finished in the green on Tuesday, following the release of strong earnings reports and as expectation for possible tax reform grew. Earnings for the Dow were particularly strong, with four of its five components exceeding expectations. The Nasdaq closed above 6,000 for the first time ever since its inception in 1971. Meanwhile, sales of newly-constructed homes in March increased 5.8% above its revised February rate.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) rose 232.23 points or 1.1% to close at 20,996.12. The surge helped the Dow to reach 0.6% below its all time closing high, which was set on March 1. The S&P 500 advanced 0.6% to close at 2,388.61. The S&P 500 finished only 0.3% below its record close on March 1. The tech-laden Nasdaq Composite Index gained 0.7% to a record close at 6,025.49. As per Dow Jones data, Nasdaq took 4,308 trading-sessions to move from one 1,000-point milestone to the next. The fear-gauge CBOE Volatility Index (VIX) declined 2.1% to 10.61. A total of around 4 billion shares were traded in NYSE on Tuesday. Advancers outpaced declining stocks on the NYSE. For 65% stocks that advanced, 31% declined.
Earnings Season
Caterpillar Inc. (CAT - Free Report) more than doubled earning expectations after posting first-quarter 2017 earnings per share of $1.28, beating the Zacks Consensus Estimate of $0.62. The company reported revenues of $9.82 billion which increased from $9.46 billion in the year-earlier period. The company benefited from its cost reduction and restructuring policies, which strengthened its balance sheet and improved cash flow. Shares of Caterpillar jumped 7.9% which added about 32 points to the Dow.
McDonald's Corporation (MCD - Free Report) posted first-quarter earnings of $1.47 per share surpassing the $1.32 expected. Moreover, the company reported revenues of $5.676 billion, beating the Zacks consensus Estimate of$5.48 billion. According to the company, changes to its menu and convenience initiatives boosted its performance. Shares of McDonald's gained 5.6%.
DuPont (DD - Free Report) posted adjusted earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.38. The company reported net sales of $7,743 million, up roughly 5% year over year. That also beat the Zacks Consensus Estimate of $7,539 million. The company benefited from its aggressive cost-saving and productivity measures.Shares of DuPont advanced 3.6%.
3M Co (MMM - Free Report) reported first quarter 2017 earnings of $2.16 per share compared to its earnings of $2.05 per share reported in the year-earlier quarter. The company posted revenue of $7.69 billion which was up from its revenue of $7.41 billion in first quarter of previous year. Shares of 3M Co gained 0.5%.
Biogen Inc (BIIB - Free Report) reported better-than expected first quarter 2017 earnings. Biogen posted earnings of $5.20 per share outpacing the Zacks Consensus Estimate of $4.97. The company posted revenues of $2.81 billion, beating the consensus estimate of $2.73 billion. Shares of the biotechnology company advanced 3.6% and emerged as one of the best performers for the Nasdaq.
However, The Coca-Cola Co (KO - Free Report) failed to meet earnings expectations in the first quarter of 2017. The company posted adjusted earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44. Though, net revenue declined 11% year over year to $9.12 billion due to currency headwinds and the negative impact of structural items, revenues surpassed the Zacks Consensus Estimate of $8.97 billion.
Caterpillar,DuPont, 3M Co, Biogen and McDonald'soutperformance improved investor confidence which ultimately had a positive impact on the broader market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All Eye On Tax Reform
President Donald Trump commented on Friday that he would unveil a massive tax cut on Wednesday in an attempt to relieve individuals and businesses from tax burdens. Trump asked White House aides to go faster with their efforts to reduce the corporate income tax rate to 15% from 35%. Expectations for a possible corporate tax cuts lifted investor confidence which ultimately helped stocks to gain.
Economic Data
As per estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of newly-constructed houses in March 2017 were at a seasonally adjusted annual rate of 621,000. The figure is 5.8% above the revised February rate of 587,000 and it also beat the Zacks Consensus Estimate of584,000.
However, consumer confidence fell in April to 120.3 from 124.9 in March and failed to meetthe Zacks Consensus Estimate level of 123.8.
Stocks that made Headlines
AT&T Q1 Earnings In Line with Estimates, Revenues Miss
U.S telecom major AT&T Inc. (T - Free Report) reported mixed financial results in the first quarter of 2017. (Read More)
McDermott Q1 Earnings Beat, Revenues Miss Estimates
Offshore oil and gas-focused engineering and construction firm McDermott International Inc. reported earnings of 8 cents per share in first-quarter 2017, higher than the Zacks Consensus Estimate of 1 cent. (Read More)
Chipotle Stock Rises on Q1 Earnings & Revenue Beat
Shares of Chipotle Mexican Grill, Inc. (CMG - Free Report) gained nearly 3% in afterhours trading on Apr 25, after the company reported better-than-expected results in first-quarter 2017. (Read More)
Baxter International Q1 Earnings Beat, FY17 View Up
Baxter International Inc. (BAX - Free Report) reported first-quarter 2017 adjusted earnings of 58 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was way better than the year-ago figure of 36 cents. (Read More)
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum from stocks under $10 to ETF to option movers from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>