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U.S. stock markets closed mixed on Friday to end a highly disappointing week. Market participants digested a series of mixed economic and earnings data. Investors remained concerned regarding an impending recession in 2024. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in green. For the week, these three stock indexes closed in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 366.71 points to close at 32,417.49. Notably, 22 components of the 30-stock index ended in negative territory, while 8 ended in positive territory.
The tech-heavy Nasdaq Composite finished at 12,643.01, gaining 0.4% due to good performance of large-cap technology stocks. However, the tech-laden entered the correction territory on Oct 25 and thereafter stayed there.
The S&P 500 slid 0.5% to finish at 4,117.37. The broad-market index entered the correction zone as it fell 10.3% from its recent high recorded in Jul 31 on a closing basis. Nine out of 11 broad sectors of the benchmark ended in negative zone and two in positive territory.
The Financials Select Sector SPDR (XLF), the Utilities Select Sector SPDR (XLU) and the Energy Select Sector SPDR (XLE) tanked 1.8%, 1.9% and 2.4%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) advanced 1.1%.
The fear-gauge CBOE Volatility Index (VIX) was up 2.9% to 21.27. A total of 10.55 billion shares were traded on Friday, lower than the last 20-session average of 10.69 billion. Decliners outnumbered advancers on the NYSE by a 2.69-to-1 ratio. On Nasdaq, a 2.08-to-1 ratio favored declining issues.
Mixed Earnings Data
Exxon Mobil Corp. (XOM - Free Report) has reported third-quarter 2023 earnings per share of $2.27 (excluding identified items), missing the Zacks Consensus Estimate of $2.36. The bottom line slipped from the year-ago profit of $4.45. Total quarterly revenues of $90,760 million beat the Zacks Consensus Estimate of $89,287 million but declined from the year-ago quarter’s $112,070 million.
Chevron Corp. (CVX - Free Report) reported adjusted third-quarter earnings per share of $3.05, which missed the Zacks Consensus Estimate of $3.68. The bottom line declined from the year-ago quarter's level of $5.56. The company generated revenues of $54.1 billion, which beat the Zacks Consensus Estimate of $54 billion. The top line, however, declined 18.9% year over year.
Amazon.com Inc. (AMZN - Free Report) delivered third-quarter 2023 earnings of $0.94 per share compared with $0.28 per share recorded in the year-ago quarter. The adjusted earnings of $0.85 per share beat the Zacks Consensus Estimate by 46.6%. Net sales of $143.1 billion increased 12.6% year over year. The figure exceeded the Zacks Consensus Estimate by 1.1%. Excluding favorable forex of $1.4 billion, revenues increased 11%.
The Department of Commerce reported that the headline personal consumption expenditure (PCE) inflation rose 0.4% in September compared with 0.1% in August. Year over year, PCE inflation appreciated 3.4% in September, in line with August.
The core PCE inflation (excluding volatile food and energy items) – the Fed’s most favorite inflation gauge – rose 0.3 in September, in line with the consensus estimate. The metric rose 0.1% in August. Year over year, PCE inflation climbed 3.7% in September, marginally lower than 3.8% in August.
Personal income increased 0.3% in September, missing both the consensus estimate and previous month’s data of 0.4%. Personal spending advanced 0.7% in September, surpassing the consensus mark of 0.5% and August’s data of 0.4%. Personal savings rate came in at 3.4% in September. The metric for August was revised upward to 4% from 3.95 reported earlier.
The University of Michigan reported that the final reading of consumer sentiment for October came in at 63.8, higher-than both the consensus estimates and October’s preliminary reading of 63.
Weekly Roundup
Wall Street ended a highly disappointing week. The three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – have fallen 2.1%, 2.5% and 2.6%, respectively. A stiff rise in yields of U.S. government bonds, concern of a near-tern recession and heightened geopolitical conflict in the Middle-East significantly dented investors’ confidence in risky assets like equities.
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Stock Market News for Oct 30, 2023
U.S. stock markets closed mixed on Friday to end a highly disappointing week. Market participants digested a series of mixed economic and earnings data. Investors remained concerned regarding an impending recession in 2024. The Dow and the S&P 500 ended in negative territory while the Nasdaq Composite finished in green. For the week, these three stock indexes closed in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) tumbled 1.1% or 366.71 points to close at 32,417.49. Notably, 22 components of the 30-stock index ended in negative territory, while 8 ended in positive territory.
The tech-heavy Nasdaq Composite finished at 12,643.01, gaining 0.4% due to good performance of large-cap technology stocks. However, the tech-laden entered the correction territory on Oct 25 and thereafter stayed there.
The S&P 500 slid 0.5% to finish at 4,117.37. The broad-market index entered the correction zone as it fell 10.3% from its recent high recorded in Jul 31 on a closing basis. Nine out of 11 broad sectors of the benchmark ended in negative zone and two in positive territory.
The Financials Select Sector SPDR (XLF), the Utilities Select Sector SPDR (XLU) and the Energy Select Sector SPDR (XLE) tanked 1.8%, 1.9% and 2.4%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) advanced 1.1%.
The fear-gauge CBOE Volatility Index (VIX) was up 2.9% to 21.27. A total of 10.55 billion shares were traded on Friday, lower than the last 20-session average of 10.69 billion. Decliners outnumbered advancers on the NYSE by a 2.69-to-1 ratio. On Nasdaq, a 2.08-to-1 ratio favored declining issues.
Mixed Earnings Data
Exxon Mobil Corp. (XOM - Free Report) has reported third-quarter 2023 earnings per share of $2.27 (excluding identified items), missing the Zacks Consensus Estimate of $2.36. The bottom line slipped from the year-ago profit of $4.45. Total quarterly revenues of $90,760 million beat the Zacks Consensus Estimate of $89,287 million but declined from the year-ago quarter’s $112,070 million.
Chevron Corp. (CVX - Free Report) reported adjusted third-quarter earnings per share of $3.05, which missed the Zacks Consensus Estimate of $3.68. The bottom line declined from the year-ago quarter's level of $5.56. The company generated revenues of $54.1 billion, which beat the Zacks Consensus Estimate of $54 billion. The top line, however, declined 18.9% year over year.
Amazon.com Inc. (AMZN - Free Report) delivered third-quarter 2023 earnings of $0.94 per share compared with $0.28 per share recorded in the year-ago quarter. The adjusted earnings of $0.85 per share beat the Zacks Consensus Estimate by 46.6%. Net sales of $143.1 billion increased 12.6% year over year. The figure exceeded the Zacks Consensus Estimate by 1.1%. Excluding favorable forex of $1.4 billion, revenues increased 11%.
Both Exxon Mobil and Chevron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mixed Economic Data
The Department of Commerce reported that the headline personal consumption expenditure (PCE) inflation rose 0.4% in September compared with 0.1% in August. Year over year, PCE inflation appreciated 3.4% in September, in line with August.
The core PCE inflation (excluding volatile food and energy items) – the Fed’s most favorite inflation gauge – rose 0.3 in September, in line with the consensus estimate. The metric rose 0.1% in August. Year over year, PCE inflation climbed 3.7% in September, marginally lower than 3.8% in August.
Personal income increased 0.3% in September, missing both the consensus estimate and previous month’s data of 0.4%. Personal spending advanced 0.7% in September, surpassing the consensus mark of 0.5% and August’s data of 0.4%. Personal savings rate came in at 3.4% in September. The metric for August was revised upward to 4% from 3.95 reported earlier.
The University of Michigan reported that the final reading of consumer sentiment for October came in at 63.8, higher-than both the consensus estimates and October’s preliminary reading of 63.
Weekly Roundup
Wall Street ended a highly disappointing week. The three major stock indexes – the Dow, the S&P 500 and the Nasdaq Composite – have fallen 2.1%, 2.5% and 2.6%, respectively. A stiff rise in yields of U.S. government bonds, concern of a near-tern recession and heightened geopolitical conflict in the Middle-East significantly dented investors’ confidence in risky assets like equities.