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Why Stocks Are Pulling Back Today & Earnings from CMG, TWTR, PM

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On the final ever episode of Free Lunch, Ryan McQueeney discusses the merger of SunTrust and BB&T as well as earnings results from Chipotle, Twitter, Dunkin’, and Philip Morris. Later, he is joined by Dave Bartosiak, who provides a technical explanation for today’s stock pullback.

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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Twitter, and other major streaming platforms.

Stocks were lower on Thursday morning as Wall Street digested a ton of fresh news impacting the market.

There was a big headline in the finance sector, as regional banking giants BB&T (BBT - Free Report) and SunTrust (STI - Free Report) announced that they had agreed to a 57%/43% all-stock merger valued at $66 billion. The deal would create the sixth-largest U.S. financial institution if it passes through regulatory authorities.

Thursday also saw the release of several notable earnings reports. Twitter (TWTR - Free Report) , Dunkin’ (DNKN - Free Report) , and Philip Morris (PM - Free Report) all filed their latest results in the morning, and each received mixed reactions. Twitter’s guidance was light and Dunkin’ saw flat comps as it ushered in new espresso drinks, while Philip Morris impressed despite slumping earnings and revenue.

Wall Street was also continuing to digest Chipotle’s (CMG - Free Report) , which was released Wednesday afternoon. The fast-casual Mexican chain topped earnings and revenue expectations, with higher menu prices lifting comps by an impressive 6.1%. Management also guided for strong comps throughout 2019, sending CMG shares higher today.

However, major indexes pulled back sharply in morning trading. This was likely a result of two key factors. First, these indexes approached their 200-day moving averages and were unable to break higher, leaving them in a “no-man’s land” of sort. This was exacerbated on Thursday after White House economic advisor Larry Kudlow said that the U.S. and China were still far apart on a trade deal.

Want to hear more about all of these stories? Check out today’s Free Lunch to hear Ryan and Dave discuss the headlines—it’s the last episode of the show ever!

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