US Stocks Mixed Amid Earnings Deluge, Materials Rally

Press Release

US equity benchmarks were struggling for direction on Wednesday morning as a modest rally in the materials sector was partially offset by a selloff in the consumer discretionary shares while traders digested the latest slate of earnings data. In economic news, a key gauge of mortgage applications fell nearly 12% from a week earlier, according to data published by the Mortgage Bankers’ Association’s weekly mortgage applications survey. This contrasted with growth of 0.5% in the prior week.

Separate data released by the Energy Information Administration showed that US inventories of crude oil fell by 1.7 million barrels to 433.2 million barrels in the week ended Oct. 18.

Six of the 11 Standard & Poor’s 500 sectors were higher recently, led by materials, up by 0.64%, followed by utilities and communication services, 0.56% and 0.54% higher, respectively. Decliners were led by the consumer discretionary sector, 0.69% lower, followed by energy, down by 0.46%.

In equity moves, gainers on the S&P 500 were led by Avery Dennison (AVY), up 9.8% after narrowing its full-year adjusted earnings guidance on the back of better-than-expected third-quarter results.

Rollins (ROL) was 8.4% higher after posting third-quarter revenue that beat forecasts and adjusted earnings which were in line with Wall Street projections. Alexion Pharmaceutical (ALXN) was up by 5.4% after raising its full-year outlook on the back of third-quarter results which topped Street estimates. Thermo Fisher Scientific (TMO) was up by 5.1% after reporting third-quarter results which beat analysts’ estimates and raising its full-year guidance.

Decliners on the index were led by Texas Instruments (TXN), 7.1% lower after posting mixed third-quarter results after markets closed on Tuesday and unveiling fourth-quarter guidance which lagged Wall Street analysts’ estimates.

WW Grainger (GWW) was down by 5.1% after posting third-quarter earnings per share which missed Street forecasts and revenue which just beat the consensus estimate. Chipotle Mexican Grill (CMG) was 4.8% lower despite the chain of fast-casual restaurants reporting third-quarter results that beat guidance late Tuesday.

Eli Lilly & Co (LLY) was 4.6% lower after reporting third-quarter revenue which lagged analysts’ consensus estimate.

The Dow Jones Industrial Average was up by almost 0.2%, the S&P 500 was slightly higher, and the Nasdaq Composite was 0.1% lower.

This post was originally published on Health Opinion

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