The Dow outperformed the two other benchmarks to close at a record high riding on a rally in shares of Boeing and Verizon. However, technology stocks took a battering as shares of Apple swooned due to now familiar speculations about overvaluation of tech stocks. This weighed on S&P 500 and Nasdaq with the indexes ended in the red. Apart from the decline in tech stocks, the S&P 500 was weighed down by industrial and healthcare sectors.
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 (DJIA) rose 0.4% or 85.54 points, closing at 21,796.55. The S&P 500 Index (INX) declined 0.1%, dwindling 2.41 points to close at 2,475.42. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,382.00, declining 40 points or 0.6%. A total of around 6.9 billion shares were traded on Monday, above the last 20-session average of 6.1 billion shares. Declining issues outnumbered advancers on the NYSE by a 1.45-to-1 ratio .On the Nasdaq, a 2.24-to-1 ratio favored declining issues.
Boeing and Verizon Post Upbeat Earnings In the Second Quarter
Boeing (BA - Free Report) reported second-quarter 2017 adjusted earnings of $2.56 per share, beating the Zacks Consensus Estimate of $2.32 and increasing from last year’s loss of $0.44 per share. Furthermore, the escalating geopolitical risks involving Syria and North Korea has led to an increased demand for defense products. (Read More: Boeing Stock Flies to All-Time High After Q2 Earnings)
Verizon Communications Inc. (VZ - Free Report) reported upbeat earnings in the second quarter. Total revenue increased 0.1% year over year to $30,548 million beating the Zacks Consensus Estimate of $29,907 million.While the top line outpaced the Zacks Consensus Estimate, the bottom line met the mark. (Read More: Verizon Q2 Earnings In Line, Revenues Beat Estimates)
The rally in shares of Boeing and Verizon boosted the Dow and helped it close at a record high of 21,796.55 on Thursday.
Tech Stocks Fall As Apple Swoons
The recent rebound in tech stocks has seen tech-related indexes finish in the green on consecutive occasions. However, Thursday was different as technology stocks after Apple swooned. Such losses were incurred following lingering concerns regarding valuation of tech stocks. Shares of Apple Inc. (AAPL - Free Report) nosedived 1.9% on Thursday. .
Further, shares of Twitter (TWTR - Free Report) nosedived, falling 14% after the social media giant failed to report expected growth in users in the second quarter. The Nasdaq Composite index closed at 6,382.00, after losing 104.00 points or 1.6% earlier during the trading session, which represents an intraday low. Also, the iShares Nasdaq Biotechnology ETF (IBB) declined 1.9%.
In contrast, Facebook (FB - Free Report) posted upbeat earnings. The company’s second-quarter 2017 earnings of $1.32 per share and revenues of $9.321 billion beat the Zacks Consensus Estimate of $1.13 and $9.173 billion respectively. (Read More: Facebook's Q2 Earnings & Revenues Surpass Estimates). However, Facebook’s gains were negated by the decline shares of Apple.
Healthcare And Industrials Drags S&P 500 Down
A slump in health-care and industrials stocks had negative ramifications for the S&P 500. The Healthcare Select SPDR declined 0.7% due to a record one-day drop in AstraZeneca shares. Shares of the drug maker fell 14.9% following a Phase 1 drug study failure. The Industrials Select SPDR fell 0.7%. These two factors succeeded in dragging down the S&P 500.
Gains in telecoms, energy and the consumer stocks failed to offset these losses. Such rate-sensitive sectors experienced broad-based gains after the Fed refrained from raising rates at the end of its two day policy meeting. The Dow Jones Transportation Average declined 3.1% to hit its lowest point in the last two months. The index is considered to be one of the reliable gauges of the overall health of the US economy.
Stocks That Made Headlines
Cabot Misses Q2 Earnings, Beats Revenue Estimates
Domestic energy explorer Cabot Oil & Gas Corporation (COG - Free Report) reported second-quarter 2017 earnings per share. (Read More)
National Oilwell Q2 Loss in Line, Revenues Miss Mark
Energy equipment maker National Oilwell Varco Inc. (NOV - Free Report) reported second-quarter 2017 loss per share. (Read More)
Deckers Outdoor Posts Narrower-than-Expected Q1 Loss
Deckers Outdoor Corporation (DECK - Free Report) posted narrower-than-expected loss in first-quarter fiscal 2018. (Read More)
Aflac Q2 Earnings Beat Estimates, Guidance Intact
Aflac Inc.’s (AFL - Free Report) second-quarter 2017 earnings of $1.83 per share surpassed the Zacks Consensus Estimate by 12.3% and increased 7% year over year. (Read More)
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