US Equity Extend Gains as HealthCare Rally Advances

Press Release
US equity benchmarks were extending gains on Tuesday morning as a rally in the health care and real estate sectors continued while the communication services segment pushed lower against a backdrop of earnings reports.
In economic news, erosion in consumers’ assessments of the labor market held down the closely-watched Conference Board’s index for a second month in a row with October’s reading coming in at 125.9. This was below the consensus estimate of analysts polled by Econoday for 128.8 and also below the upwardly revised prior month’s reading of 126.3.

Seven of the 11 Standard & Poor’s 500 Index sectors were higher at the time of writing, led by the health care segment, followed by real estate and materials, 1.1% and 0.7% higher, respectively. Decliners were led by communication services, down by 0.6%, and technology, 0.3% lower.

In equity news, gainers on the Standard & Poor’s 500 were led by Xerox (XRX), almost 14% higher after the company posted third-quarter results which beat analysts’ estimate while raising its full-year earnings guidance.

Leggett & Platt (LEG) was up by 9.4% after the company reported sales for its third quarter which sailed past Wall Street projections and released full-year earnings guidance which was also ahead of analysts’ estimates.

National Oilwell Varco (NOV) was 9.1% higher after the provider of technology and equipment to the oil and gas industry reported revenue for its third quarter which beat analysts’ estimates.

HCA Holding (HCA) was 6.3% higher the health care company reported third-quarter results which beat analysts’ views. And General Motors (GM) was up by 5.6% after posting mixed results for its fiscal third quarter as the strike by the United Auto Workers union in the US negatively affected the automobile manufacturers’ North American business even though the results came in better than analysts’ expectations.

Decliners on the index were led by IPG Photonics (IPGP), nearly 14% lower after the manufacturer of fiber lasers’ third-quarter results missed analysts’ expectations. Waters (WAT) was down by 4.1% after lowering its full-year sales and earnings guidance on the back of lower-than-expected revenue in its third quarter.

AO Smith’s (AOS) shares were 3.5% lower after the manufacturer of water heaters and boilers, reported third-quarter revenue which fell short of analysts’ estimates while earnings per share beat projections. The company also lowered its full-year guidance.

The Dow Jones Industrial Average and the S&P 500 were each up 0.2% while the Nasdaq Composite was nearly 0.4% lower.

This post was originally published on Health Opinion

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