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U.S. stock markets closed higher on Wednesday after a choppy session. Market participants waited for a key inflation data to be released on Friday and an important Presidential debate. Moreover, recently reported earnings results were mixed. All three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was up 15.64 points to close at 39.127.80. The blue-chip index was down more than 200 points at intraday low. Notably, 15 components of the 30-stock index ended in positive territory while 15 in negative zone. The tech-heavy Nasdaq Composite finished at 17,805.16, rising 0.5% due to good performance by U.S. technology behemoths.
The S&P 500 gained 0.2% to finish at 5,477,90. Nine out of the 11 broad sectors of the broad-market index ended in negative territory, while two in positive zone. The Energy Select Sector SPDR (XLE) fell 1% while the Consumer Discretionary Select Sector SPDR (XLY) advanced 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.5% to 12.55. A total of 10.59 billion shares were traded on Wednesday, lower than the last 20-session average of 11.83 billion. The NYSE recorded 106 new highs and 89 new lows. The Nasdaq Composite registered 41 new highs and 171 new lows.
Mixed Earnings Results
FedEx Corp.’s (FDX - Free Report) fourth-quarter fiscal 2024 earnings per share (EPS) (excluding $0.53 from non-recurring items) of $5.41 beat the Zacks Consensus Estimate of $5.34 and improved 9.5% year over year. Revenues of $22.109 billion fell short of the Zacks Consensus Estimate of $22.115 billion but grew 0.8% from the year-ago quarter’s reported figure.
General Mills Inc. (GIS - Free Report) posted soft fourth-quarter fiscal 2024 results. Adjusted earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $0.99. However, the bottom line declined 10% year over year on a constant-currency (cc) basis. GIS reported net sales of $4,713.9 million, which fell short of the Zacks Consensus Estimate of $4,873 million. Also, the top line decreased 6% due to the adverse net price realization and mix, along with reduced pound volume.
Paychex Inc. (PAYX - Free Report) has reported mixed fourth-quarter fiscal 2024 results. PAYX’s earnings of $1.1 per share beat the Zacks Consensus Estimate by 1.8% and increased 15.5% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate marginally but rose 5.3% from the year-ago quarter.
Consequently, the stock price of FedEx jumped 15.5%. However, stock prices of General Mills and Paychex tumbled 4.6% and 6.1%, respectively. All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rate Cut Concerns
Market participants remained concerned regarding the Fed’s interest rate cut decisions and the magnitudes of the reduction this year. Recently released several weak economic data raised investors’ expectations. The CME FedWatch tool currently shows a 62.3% probability that the Fed will reduce interest rate by 25 basis points in September.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that sales of new single???family houses in May were at a seasonally adjusted annual rate of 619,000. The consensus estimate was 645,000. The metric for April was revised upward to 698,000 from 634,000 reported earlier. Year over year, new home sales declined 16.5% in May.
For the week ended Jun 21, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.6 million barrels from the previous week.
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Stock Market News for Jun 27, 2024
U.S. stock markets closed higher on Wednesday after a choppy session. Market participants waited for a key inflation data to be released on Friday and an important Presidential debate. Moreover, recently reported earnings results were mixed. All three major stock indexes ended in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was up 15.64 points to close at 39.127.80. The blue-chip index was down more than 200 points at intraday low. Notably, 15 components of the 30-stock index ended in positive territory while 15 in negative zone. The tech-heavy Nasdaq Composite finished at 17,805.16, rising 0.5% due to good performance by U.S. technology behemoths.
The S&P 500 gained 0.2% to finish at 5,477,90. Nine out of the 11 broad sectors of the broad-market index ended in negative territory, while two in positive zone. The Energy Select Sector SPDR (XLE) fell 1% while the Consumer Discretionary Select Sector SPDR (XLY) advanced 1.5%.
The fear-gauge CBOE Volatility Index (VIX) was down 0.5% to 12.55. A total of 10.59 billion shares were traded on Wednesday, lower than the last 20-session average of 11.83 billion. The NYSE recorded 106 new highs and 89 new lows. The Nasdaq Composite registered 41 new highs and 171 new lows.
Mixed Earnings Results
FedEx Corp.’s (FDX - Free Report) fourth-quarter fiscal 2024 earnings per share (EPS) (excluding $0.53 from non-recurring items) of $5.41 beat the Zacks Consensus Estimate of $5.34 and improved 9.5% year over year. Revenues of $22.109 billion fell short of the Zacks Consensus Estimate of $22.115 billion but grew 0.8% from the year-ago quarter’s reported figure.
General Mills Inc. (GIS - Free Report) posted soft fourth-quarter fiscal 2024 results. Adjusted earnings of $1.10 per share, which beat the Zacks Consensus Estimate of $0.99. However, the bottom line declined 10% year over year on a constant-currency (cc) basis. GIS reported net sales of $4,713.9 million, which fell short of the Zacks Consensus Estimate of $4,873 million. Also, the top line decreased 6% due to the adverse net price realization and mix, along with reduced pound volume.
Paychex Inc. (PAYX - Free Report) has reported mixed fourth-quarter fiscal 2024 results. PAYX’s earnings of $1.1 per share beat the Zacks Consensus Estimate by 1.8% and increased 15.5% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate marginally but rose 5.3% from the year-ago quarter.
Consequently, the stock price of FedEx jumped 15.5%. However, stock prices of General Mills and Paychex tumbled 4.6% and 6.1%, respectively. All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rate Cut Concerns
Market participants remained concerned regarding the Fed’s interest rate cut decisions and the magnitudes of the reduction this year. Recently released several weak economic data raised investors’ expectations. The CME FedWatch tool currently shows a 62.3% probability that the Fed will reduce interest rate by 25 basis points in September.
Economic Data
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced that sales of new single???family houses in May were at a seasonally adjusted annual rate of 619,000. The consensus estimate was 645,000. The metric for April was revised upward to 698,000 from 634,000 reported earlier. Year over year, new home sales declined 16.5% in May.
For the week ended Jun 21, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 3.6 million barrels from the previous week.