U.S. stocks ended mixed on May 11 as there was no major event to give clear direction to investors. Investors were largely left to brood over the issues the country might face in its process of reopening the economy. Gains in healthcare and technology stocks countered the losses incurred by financial stocks as investors also kept a close watch on the number of coronavirus cases in the country amid easing social distancing measures.
The Dow Jones Industrial Average closed at 24,221.99 after declining 0.5%, the broader S&P 500 reached 2,930.32 after marginally rising 0.02% and the tech-laden Nasdaq Composite hit 9,192.34 after inching 0.8% higher.
The fear-gauge CBOE Volatility Index (VIX) rose 2.5% to close at 28.25 on May 11. Finally, decliners outnumbered advancers on the NYSE by a 1.80-to-1 ratio.
More Coronavirus Cases Amid Less Social Restrictions
According to the World Health Organization (WHO) on May 11, countries that relaxed their social distancing measures have witnessed a rise in the number of COVID-19 cases. South Korea reported of a new hub of coronavirus cases across night clubs in the country. New cases were also reported in Japan and Singapore.
Tech Stocks Helped Broader Markets Post Gains
The Technology Select Sector SPDR’s (XLK) 0.7% upward movement on May 11 was a result of the FAANGM stocks rising to prop the index higher. Shares of Facebook, Inc. (FB - Free Report) , Amazon.com, Inc. (AMZN - Free Report) , Apple Inc. (AAPL - Free Report) , Netflix, Inc. (NFLX - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Microsoft Corporation (MSFT - Free Report) gained 0.4%, 1.2%, 1.6%, 1.1%, 1.4% and 1.1% respectively. These stocks gained on hopes that business activity will gather steam as the economy gradually reopens.
Mixed Earnings Keep Knocking
Shares of Cardinal Health, Inc. (CAH - Free Report) added 6.7% on May 11 after the company reported third-quarter fiscal 2020 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.43 by 13.3%. In addition, the revenues also gained 11.2% on a year-over-year basis to reach $39.16 billion. The top line outpaced the Zacks Consensus Estimate by 5.8%.
Major reasons behind the company’s impressive earnings and revenues for the quarter ended March 2020 were the solid growth in its pharmaceutical segment, which witnessed a rise in pharmaceutical distribution and specialty solutions customers, and strong performance by its medical segment. (Read more)
Cardinal Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
As of May 8, more than 85% of the S&P 500 members had reported their earnings for the quarter ended March 2020. Of these, companies from the financial industry dragged the index down while those belonging to the technology sector pushed it higher. (Read more)
Stocks That Made Headlines
Hertz Q1 Loss Wider Than Expected on Coronavirus Impact
Hertz Global Holdings (HTZ - Free Report) incurred a loss of $1.78 per share in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $1.06. (Read more)
Chesapeake Q1 Loss Widens Y/Y on Gas Prices, Stock Down
Chesapeake Energy Corporation (CHK - Free Report) first-quarter 2020 loss per share (adjusted for 1:200 reverse stock split) of $852.97, which was significantly wider than the year-ago loss of $6.37. (Read more)
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