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Markets closed mostly higher on Tuesday even as the Nasdaq surged to a record high, boosted by encouraging earnings from Netflix. The S&P 500 also hit a record close while the Dow edged lower due to mixed corporate earnings from some of its top components. Meanwhile, Congress approved a Bill to keep the government funded in the coming weeks, halting the three-day government shutdown
The Dow Jones Industrial Average (DJI) decreased less than 0.1%, to close at 26,210.81. The S&P 500 rose 0.2% to close at 2,839.13. The tech-laden Nasdaq Composite Index closed at 7,460.29, gaining 0.7%. The fear-gauge CBOE Volatility Index (VIX) increased 0.6% to close at 11.10. A total of around 6.78 billion shares were traded on Wednesday, higher than the last 20-session average of 6.38 billion shares. Advancers outnumbered decliners on the NYSE by a 1.60-to-1 ratio. On Nasdaq, a 1.28-to-1 ratio favored advancing issues.
Netflix Surges, Pushes Nasdaq into Record Territory
Shares of Netflix (NFLX - Free Report) surged 10% to $250.29 on Tuesday, breaking above $100 billion in market capitalization for the first time since inception. Such a feat was made possible after the company reported that it added 6.36 million new international memberships alone in the fourth quarter.
The tech behemoth reported earnings per share of 41 cents, in line with the Zacks Consensus Estimate and up from 15 cents in the year-ago quarter. Revenues climbed 33% year over year to $3.29 billion, well above our estimate of $3.26 billion. Most of the strength came from global streaming revenues, which were up 35.3% year over year. (Read More)
Such an event boded well for the technology sector and the tech-laden index, Nasdaq, amassed 52.3 points to finish at a record.
S&P 500 Posts a Fresh Record Close
The S&P 500 increased 6.2 points to close at a fresh record on Tuesday. This marked its 12th record so far in January — the most number of record closes in the month. Of the 11 major sectors of the S&P 500, seven ended in the positive territory with real estate and utilities stocks leading the advancers. The Utilities Select Sector SPDR ETF (XLU) and the Real Estate Select Sector SPDR (XLRE) surged 1% and 1.5%, respectively.
Gains for the broad market index were rather broad-based and made possible after a spate of stupendous corporate earnings. So far in the current earnings season, 76% of the companies under S&P 500 have beat earnings expectations. Further, 84% of the companies which reported earnings in the fourth quarter surpassed sales expectations.
Dow Edges Lower After Mixed Earnings Results
The Dow lost 3.8 points to finish the day in the red, briefly hitting an intraday high earlier in the session. The blue-chip index suffered a decline following mixed corporate earnings from some of its top components.
Shares of Johnson & Johnson (JNJ - Free Report) plunged 4.3% after reporting mixed fourth quarter 2017 earnings. The company beat on fourth quarter earnings - the company reported EPS of $1.74 while our consensus called for EPS of $1.72. However, revenues slightly missed expectations. Johnson & Johnson posted revenues of $20.20 billion, compared to our consensus estimate of $20.22 billion. (Read More)
Shares of The Procter & Gamble Company (PG - Free Report) declined 3.1% after reporting fourth quarter 2017 earnings. P&G’s reported net sales of $17.4 billion surpassed the Zacks Consensus Estimate of $17.34 billion. The top line grew 3% from the year-ago level. Foreign exchange had a 1% positive impact on sales. Organically, revenues grew 2% on the back of a 2% increase in organic volumes. However, price had a 1% negative impact on sales. (Read More)
Further, shares of Verizon Communications Inc. (VZ - Free Report) dipped 0.4% after reporting mixed financial numbers in the fourth quarter of 2017. While the top line beat the Zacks Consensus Estimate, the bottom line lagged the same. Quarterly-GAAP net income was $18,783 million compared with $4,600 million in the year-ago quarter. Adjusted earnings per share of 86 cents lagged the Zacks Consensus Estimate of 88 cents. (Read More)
Meanwhile, shares of The Travelers Companies, Inc. (TRV - Free Report) rallied 5% after reporting fourth quarter earnings which surpassed analysts’ expectations. The fourth-quarter 2017 core income of $2.28 per share comfortably beat the Zacks Consensus Estimate by a whopping 39%. However, the bottom line deteriorated 28.8% year over year. (Read More)
Following a three-day government shutdown, the Congress finally approved a Bill on Monday to keep the government funded for three weeks. This came right after the Republicans assured the Democrats that an immigration Bill would worked upon and brought to the floor in a matter of a few weeks.
In a 266-150 vote, the House approved the funding Bill which President Trump signed on Monday night. The Bill seeks to keep the government funded through Feb 8.
Magellan Midstream Partners, L.P.’s board of directors recently announced an increase in quarterly cash distribution for the fourth quarter of 2017. (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stock Market News For Jan 24, 2018
Markets closed mostly higher on Tuesday even as the Nasdaq surged to a record high, boosted by encouraging earnings from Netflix. The S&P 500 also hit a record close while the Dow edged lower due to mixed corporate earnings from some of its top components. Meanwhile, Congress approved a Bill to keep the government funded in the coming weeks, halting the three-day government shutdown
The Dow Jones Industrial Average (DJI) decreased less than 0.1%, to close at 26,210.81. The S&P 500 rose 0.2% to close at 2,839.13. The tech-laden Nasdaq Composite Index closed at 7,460.29, gaining 0.7%. The fear-gauge CBOE Volatility Index (VIX) increased 0.6% to close at 11.10. A total of around 6.78 billion shares were traded on Wednesday, higher than the last 20-session average of 6.38 billion shares. Advancers outnumbered decliners on the NYSE by a 1.60-to-1 ratio. On Nasdaq, a 1.28-to-1 ratio favored advancing issues.
Netflix Surges, Pushes Nasdaq into Record Territory
Shares of Netflix (NFLX - Free Report) surged 10% to $250.29 on Tuesday, breaking above $100 billion in market capitalization for the first time since inception. Such a feat was made possible after the company reported that it added 6.36 million new international memberships alone in the fourth quarter.
The tech behemoth reported earnings per share of 41 cents, in line with the Zacks Consensus Estimate and up from 15 cents in the year-ago quarter. Revenues climbed 33% year over year to $3.29 billion, well above our estimate of $3.26 billion. Most of the strength came from global streaming revenues, which were up 35.3% year over year. (Read More)
Such an event boded well for the technology sector and the tech-laden index, Nasdaq, amassed 52.3 points to finish at a record.
S&P 500 Posts a Fresh Record Close
The S&P 500 increased 6.2 points to close at a fresh record on Tuesday. This marked its 12th record so far in January — the most number of record closes in the month. Of the 11 major sectors of the S&P 500, seven ended in the positive territory with real estate and utilities stocks leading the advancers. The Utilities Select Sector SPDR ETF (XLU) and the Real Estate Select Sector SPDR (XLRE) surged 1% and 1.5%, respectively.
Gains for the broad market index were rather broad-based and made possible after a spate of stupendous corporate earnings. So far in the current earnings season, 76% of the companies under S&P 500 have beat earnings expectations. Further, 84% of the companies which reported earnings in the fourth quarter surpassed sales expectations.
Dow Edges Lower After Mixed Earnings Results
The Dow lost 3.8 points to finish the day in the red, briefly hitting an intraday high earlier in the session. The blue-chip index suffered a decline following mixed corporate earnings from some of its top components.
Shares of Johnson & Johnson (JNJ - Free Report) plunged 4.3% after reporting mixed fourth quarter 2017 earnings. The company beat on fourth quarter earnings - the company reported EPS of $1.74 while our consensus called for EPS of $1.72. However, revenues slightly missed expectations. Johnson & Johnson posted revenues of $20.20 billion, compared to our consensus estimate of $20.22 billion. (Read More)
Shares of The Procter & Gamble Company (PG - Free Report) declined 3.1% after reporting fourth quarter 2017 earnings. P&G’s reported net sales of $17.4 billion surpassed the Zacks Consensus Estimate of $17.34 billion. The top line grew 3% from the year-ago level. Foreign exchange had a 1% positive impact on sales. Organically, revenues grew 2% on the back of a 2% increase in organic volumes. However, price had a 1% negative impact on sales. (Read More)
Further, shares of Verizon Communications Inc. (VZ - Free Report) dipped 0.4% after reporting mixed financial numbers in the fourth quarter of 2017. While the top line beat the Zacks Consensus Estimate, the bottom line lagged the same. Quarterly-GAAP net income was $18,783 million compared with $4,600 million in the year-ago quarter. Adjusted earnings per share of 86 cents lagged the Zacks Consensus Estimate of 88 cents. (Read More)
Meanwhile, shares of The Travelers Companies, Inc. (TRV - Free Report) rallied 5% after reporting fourth quarter earnings which surpassed analysts’ expectations. The fourth-quarter 2017 core income of $2.28 per share comfortably beat the Zacks Consensus Estimate by a whopping 39%. However, the bottom line deteriorated 28.8% year over year. (Read More)
Such mixed earnings performances weighed heavily on the blue-chip index and led it lower. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Congress Approves a Government Funding Bill
Following a three-day government shutdown, the Congress finally approved a Bill on Monday to keep the government funded for three weeks. This came right after the Republicans assured the Democrats that an immigration Bill would worked upon and brought to the floor in a matter of a few weeks.
In a 266-150 vote, the House approved the funding Bill which President Trump signed on Monday night. The Bill seeks to keep the government funded through Feb 8.
Stocks That Made Headlines
United Continental Q4 Earnings Surpass, Decline Y/Y
United Continental Holdings (UAL - Free Report) reported better-than-expected earnings and revenues in the fourth quarter of 2017. (Read More)
Canadian National Down on Q4 Earnings & Revenue Miss
Canadian National Railway Company’s (CNI - Free Report) fourth-quarter 2017 earnings fell short of the Zacks Consensus Estimate. (Read More)
Magellan Rewards Unitholders With Distribution Hike
Magellan Midstream Partners, L.P.’s board of directors recently announced an increase in quarterly cash distribution for the fourth quarter of 2017. (Read More)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>