The main US stock indices mainly increased, as investors analyzed the fresh reporting unit of American companies.
Tesla (TSLA) announced that it had adjusted earnings of $ 1.91 per share, which came as a surprise to analysts who forecast a loss of $ 0.28 per share. The company's revenue was slightly lower than Wall Street. Reduced costs and record deliveries of electric cars helped the automaker show profit. TSLA shares soared 17.77%.
Microsoft (MSFT) reported a profit of $ 1.38 per share, which was $ 0.14 higher than analysts. The company's revenue also exceeded market forecasts. Microsoft’s solid quarterly performance was partially driven by Azure’s cloud business, which grew 59% YoY. MSFT shares rose 1.91%.
Adjusted quarterly earnings of Dow Inc. (DOW) reached $ 0.91 per share, which was higher than the average forecast of analysts at $ 0.72. The company's quarterly revenues almost coincided with analysts' expectations, although sales decreased by 15.2% yoy due to lower prices for its products. DOW shares rose 4.61%.
On the contrary, disappointment for market participants was the results of Twitter (TWTR) and 3M (MMM). After the close of the trading session, quarterly reports are expected to be published by Amazon (AMZN), Intel (INTC) and Visa (V).
Investors also studied several important macro reports. The Commerce Department said a sharp drop in orders for transportation equipment contributed to a more significant than expected decline in orders for durable goods in the US in September. According to data, orders for durable goods fell 1.1% in September after rising by a revised 0.3% in August. Economists had expected orders for durable goods to decline by 0.8% compared with a 0.2% increase reported in the previous month. Excluding the sharp drop in orders for transportation equipment, orders for durable goods fell 0.3% in September after rising 0.3% in August.
Preliminary Markit PMIs indicated a slight increase in business activity in the US in October, supported by the fastest production expansion in six months. Service activity growth also accelerated, although growth rates in both sectors remained low. According to the report, the manufacturing index rose to 51.5 from 51.1 in September, which indicates that the business environment in the manufacturing sector continued to recover. The recorded rate of improvement was the fastest in six months, driven by stronger production growth, new orders and employment. At the same time, the index of business activity in the services sector rose to 51.0 from 50.9 in September, to a maximum since July.
Most of the DOW components completed trading in the red (21 of 30). Outsiders were 3M Co. (MMM; -3.69%). The biggest gainers were Dow Inc. (DOW; + 4.26%).
Most S&P sectors recorded an increase. The technological sector grew the most (+ 0.7%). The largest decline was shown in the raw materials sector (-0.4%).
At the time of closing:
Dow 26,805.06 -28.89 -0.11%
S&P 500 3,010.25 +5.73 +0.19%
Nasdaq 100 8,185.80 +66.00 +0.81%
U.S. stock-index futures rose on Thursday as solid quarterly reports from Microsoft (MSFT), Dow (DOW) and Tesla (TSLA) lifted investor sentiment, following disappointing results from several big companies in the previous session.
Today's Change, points
Today's Change, %
(company / ticker / price / change ($/%) / volume)
ALTRIA GROUP INC.
Amazon.com Inc., NASDAQ
American Express Co
Cisco Systems Inc
Exxon Mobil Corp
FedEx Corporation, NYSE
Ford Motor Co.
General Electric Co
General Motors Company, NYSE
Home Depot Inc
International Business Machines Co...
Johnson & Johnson
JPMorgan Chase and Co
Merck & Co Inc
Procter & Gamble Co
Starbucks Corporation, NASDAQ
Tesla Motors, Inc., NASDAQ
Twitter, Inc., NYSE
United Technologies Corp
Verizon Communications Inc
Wal-Mart Stores Inc
Walt Disney Co
Yandex N.V., NASDAQ
Comcast (CMCSA) reported Q3 FY 2019 earnings of $0.79 per share (versus $.0 65in Q3 FY 2018), beating analysts’ consensus estimate of $0.74.
The company’s quarterly revenues amounted to $26.827 bln (+21.2% y/y), generally in line with analysts’ consensus estimate of $26.775 bln.
CMCSA rose to $46.70 (+2.14%) in pre-market trading.
Dow (DOW) reported Q3 FY 2019 earnings of $0.91 per share (versus $1.34 in Q3 FY 2018), beating analysts’ consensus estimate of $0.72.
The company’s quarterly revenues amounted to $10.764 bln (-15.2% y/y), generally in line with analysts’ consensus estimate of $10.814 bln.
DOW rose to $48.83 (+3.39%) in pre-market trading.
3M (MMM) reported Q3 FY 2019 earnings of $2.72 per share (versus $2.58 in Q3 FY 2018), beating analysts’ consensus estimate of $2.52.
The company’s quarterly revenues amounted to $7.991 bln (-2.0% y/y), missing analysts’ consensus estimate of $8.197 bln.
The company also issued downside guidance for Q4 FY 2019, projecting GAAP EPS of $2.05-2.15 versus analysts’ consensus estimate of $2.37.
MMM fell to $166.21 (-1.51%) in pre-market trading.
Twitter (TWTR) reported Q3 FY 2019 earnings of $0.14 per share (versus $0.21 in Q3 FY 2018), missing analysts’ consensus estimate of $0.20.
The company’s quarterly revenues amounted to $0.824 bln (+8.7% y/y), missing analysts’ consensus estimate of $0.875 bln.
Twitter’s average monetizable daily active usage (mDAU) was 145 mln versus analysts’ consensus estimate of 142 mln and compared to 124 million in the same period of the previous year and 139 million in the previous quarter.
The company also issued downside guidance for Q4 FY 2019, projecting revenues of $940-1010 mln versus analysts’ consensus estimate of $1.05 bln
TWTR fell to $31.15 (-19.78%) in pre-market trading.
Ford Motor (F) reported Q3 FY 2019 earnings of $0.34 per share (versus $0.29 in Q3 FY 2018), beating analysts’ consensus estimate of $0.26.
The company’s quarterly revenues amounted to $33.931 bln (-2.1% y/y), generally in line with analysts’ consensus estimate of $33.876 bln.
The company also issued in-line guidance for FY 2019, projecting EPS of $1.20-1.32 versus analysts’ consensus estimate of $1.26 and its prior guidance of $1.20-1.35.
F fell to $8.83 (-4.13%) in pre-market trading.
Microsoft (MSFT) reported Q1 FY 2020 earnings of $1.38 per share (versus $1.14 in Q1 FY 2019), beating analysts’ consensus estimate of $1.24.
The company’s quarterly revenues amounted to $33.055 bln (+13.7% y/y), beating analysts’ consensus estimate of $32.240 bln.
MSFT rose to $138.48 (+0.90%) in pre-market trading.
Tesla (TSLA) reported Q3 FY 2019 earnings of $1.91 per share (versus $2.90 in Q3 FY 2018), better than analysts’ consensus estimate of -$0.28.
The company’s quarterly revenues amounted to $6.303 bln (-7.6% y/y), missing analysts’ consensus estimate of $6.476 bln.
TSLA rose to $301.00 (+18.19%) in pre-market trading.
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