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U.S. stock markets closed sharply higher on Monday following strong third-quarter 2023 earnings results. Market participants are waiting for the outcome of the Fed’s November FOMC meeting to be announced on Wednesday. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.6% or 511.37 points to close at 32,928.96. Notably, 28 components of the 30-stock index ended in positive territory, while 2 ended in negative zone. The blue-chip index posted its best single-day performance since Jun 2.
The tech-heavy Nasdaq Composite finished at 12,789.48, surging 1.2% due to strong 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 climbed 1.2% to finish at 4,166.82. The broad-market index exited the correction zone after entering it on Oct 27. All 11 broad sectors of the benchmark ended in positive territory.
The Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Materials Select Sector SPDR (XLB), the Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) advanced 1.8%, 1.2%, 1%, 2.1% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.2% to 19.75. A total of 10.16 billion shares were traded on Monday, lower than the last 20-session average of 10.67 billion. Advancers outnumbered decliners on the NYSE by a 2.15-to-1 ratio. On Nasdaq, a 1,62-to-1 ratio favored advancing issues.
Strong Earnings Results
McDonald's Corp. (MCD - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. During third-quarter 2023, McDonald's reported adjusted earnings per share of $3.19, outpacing the Zacks Consensus Estimate of $3.00. Adjusted earnings increased 16% from the prior year. Quarterly net revenues of $6,692.2 million outpaced the consensus mark of $6,574 million. The top line rose 14% year over year.
Western Digital Corp. (WDC - Free Report) reported first-quarter fiscal 2024 non-GAAP loss of $1.76 per share, narrower than the Zacks Consensus Estimate of a loss of $1.88. The company had reported earnings per share of $0.20 in the prior-year quarter.
Revenues of $2.750 billion beat the Zacks Consensus Estimate by 3.1%. However, the top line decreased 26% year over year owing to weak performance across Cloud and Client end markets. On a sequential basis, revenues increased 3%.
XPO Inc. (XPO - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly revenues of $1.98 billion, down 34.9% over the same period last year. EPS came in at $0.88, compared to $1.45 in the year-ago quarter.
The reported revenue represents a surprise of +3.66% over the Zacks Consensus Estimate of $1.91 billion. With the consensus EPS estimate being $0.63, the EPS surprise was +39.68%.
The Fed will conduct its next FOMC meeting Scheduled Oct 31 to Nov 1. At present the CME FedWatch tool has shown 100% probability that the benchmark interest rate will not increase further. In fact, 1.7% respondents hope the Fed fund rate to decline by 25 basis points, while 98.3% chance that the central bank will maintain status quo. However, market participants will keenly listen to the post-FOMC statement of the Fed Chairman Jerome Powell in order to draw conclusion about the central bank’s future course of actions.
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Stock Market News for Oct 31, 2023
U.S. stock markets closed sharply higher on Monday following strong third-quarter 2023 earnings results. Market participants are waiting for the outcome of the Fed’s November FOMC meeting to be announced on Wednesday. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.6% or 511.37 points to close at 32,928.96. Notably, 28 components of the 30-stock index ended in positive territory, while 2 ended in negative zone. The blue-chip index posted its best single-day performance since Jun 2.
The tech-heavy Nasdaq Composite finished at 12,789.48, surging 1.2% due to strong 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 climbed 1.2% to finish at 4,166.82. The broad-market index exited the correction zone after entering it on Oct 27. All 11 broad sectors of the benchmark ended in positive territory.
The Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI) and the Materials Select Sector SPDR (XLB), the Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) advanced 1.8%, 1.2%, 1%, 2.1% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 7.2% to 19.75. A total of 10.16 billion shares were traded on Monday, lower than the last 20-session average of 10.67 billion. Advancers outnumbered decliners on the NYSE by a 2.15-to-1 ratio. On Nasdaq, a 1,62-to-1 ratio favored advancing issues.
Strong Earnings Results
McDonald's Corp. (MCD - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. During third-quarter 2023, McDonald's reported adjusted earnings per share of $3.19, outpacing the Zacks Consensus Estimate of $3.00. Adjusted earnings increased 16% from the prior year. Quarterly net revenues of $6,692.2 million outpaced the consensus mark of $6,574 million. The top line rose 14% year over year.
Western Digital Corp. (WDC - Free Report) reported first-quarter fiscal 2024 non-GAAP loss of $1.76 per share, narrower than the Zacks Consensus Estimate of a loss of $1.88. The company had reported earnings per share of $0.20 in the prior-year quarter.
Revenues of $2.750 billion beat the Zacks Consensus Estimate by 3.1%. However, the top line decreased 26% year over year owing to weak performance across Cloud and Client end markets. On a sequential basis, revenues increased 3%.
XPO Inc. (XPO - Free Report) reported third-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly revenues of $1.98 billion, down 34.9% over the same period last year. EPS came in at $0.88, compared to $1.45 in the year-ago quarter.
The reported revenue represents a surprise of +3.66% over the Zacks Consensus Estimate of $1.91 billion. With the consensus EPS estimate being $0.63, the EPS surprise was +39.68%.
Consequently, shares of McDonald's, Western Digital and XPO appreciated 1.7%, 7.3% and 15.1%, respectively. XPO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fed’s FOMC Meeting in Focus
The Fed will conduct its next FOMC meeting Scheduled Oct 31 to Nov 1. At present the CME FedWatch tool has shown 100% probability that the benchmark interest rate will not increase further. In fact, 1.7% respondents hope the Fed fund rate to decline by 25 basis points, while 98.3% chance that the central bank will maintain status quo. However, market participants will keenly listen to the post-FOMC statement of the Fed Chairman Jerome Powell in order to draw conclusion about the central bank’s future course of actions.