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Markets closed mostly higher on Thursday backed by strong earnings from some prominent stocks. Both the Dow and the S&P 500 ended in the green. However, biotech stocks tanked, pulling the healthcare sector lower and weighing on the Nasdaq. Meanwhile, the House of Representatives cleared the budget blueprint with majority of the Republicans voting in favor of the move. Further, the ECB announced plans to extend the quantitative easing program.
The Dow Jones Industrial Average (DJIA) closed at 23,400.86, gaining 0.3%. The S&P 500 Index (INX) increased 0.1% to close at 2,560.40. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,556.77, increasing 0.1%. Advancing issues outnumbered decliners on the NYSE by a 1.22-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.14-to-1 ratio. The CBOE VIX decreased almost 2% to close at 11.01.
Dow, S&P 500 Continue to Gain
The Dow amassed 71.4 points on Wednesday to finish in positive territory. Gains for the blue-chip index were powered by shares of Nike (NKE - Free Report) , which gained 3.4% after the shoe and apparel retailer raised the revenue growth target for the coming years. These announcements were made at the company’s investor day. Nike’s shares were the biggest gainers for the Dow.
The S&P 500 also ended in the green, gaining 3.3 points in the process. Of the 11 major segments of the S&P 500, nine finished in the green, with materials leading the gainers. The Materials Select Sector SPDR ETF (XLB) gained 1.3% to close at 59.43. Such gains were made possible after shares of Union Pacific Corp. (UNP - Free Report) surged 5.6% following an earnings beat in the third quarter, 2017. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The rail transportation provider’s third-quarter 2017 earnings of $1.50 beat the Zacks Consensus Estimate of $1.49 per share. The bottom line expanded 10.3% on a year-over-year basis. Results were aided by higher revenues. Operating revenues of $5,408 million also surpassed the Zacks Consensus Estimate of $5,306.5 million. (Read More)
Biotech Shares Weigh on the Nasdaq
Meanwhile, the Nasdaq suffered losses as it gave up 7.1 points to end in the red, just ahead of the release of earnings from some of the major tech stocks from FAAMG group such as Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) . Losses for the Nasdaq were incurred after the biotech shares tanked. This had negative ramifications for the overall healthcare sector as well. The iShares Nasdaq Biotechnology ETF (IBB) plummeted 2.3%, pulling the overall healthcare sector lower by 1%.
Biotech stocks suffered losses after shares of Celgene Corp. tanked 16.4% despite surpassing the earnings expectations in the third quarter. The company missed out on revenue expectation on Q3 and suffered losses. Celgene reported mixed results in third-quarter 2017 wherein earnings beat expectations but sales failed to meet estimates. (Read More)
House Passes Budget Blueprint
House of Representative passed the budget blueprint on Thursday. This officially unlocked a procedure using which the tax code can be changed using a simple majority of only Republican votes, instead of the 60 votes norm usually followed. Trump and his fellow Republicans had campaigned on bringing about much needed tax reforms and such an event gets the members of GOP even closer to delivering on their promise.
In a 216 to 212 vote, the House cleared the budget blueprint, with as many as 20 Republicans voting against it. Meanwhile, House Ways & Means Committee Chairman Kevin Brad stated that the budget Bill would be introduced on Nov 1. Apart from tax repatriation, the framework also promises to almost double the standard deduction of tax rates and add as much as $1.5 trillion to deficits over a period of 10 years.
ECB Extends Quantitative Easing
The ECB announced on Thursday that it will be slashing the level of bond purchases every month, but, will extend the length of the time the stimulus program runs. ECB promised to buy €30 billion in bonds from €60 billion, beginning in January. The central bank intends to extend its monetary stimulus program until at least September 2018.
The ECB also reiterated that interest rates would remain at their current levels well past the end of the quantitative easing (QE) program.
Economic Data
Pending home sales for the month of September remained unchanged from August, whereas the consensus estimate for the period was a decline of 0.5%. With this, the index hit a two and a half year low. Such a lackluster show can be attributed to extremely short supply amidst strong demands. Meanwhile, initial jobless claims decreased to 233,000 — still languishing at historically low levels. The consensus estimate for the period was an increase to 235,000.
It was not UGG but sturdy sales performance across HOKA ONE ONE and Teva brands coupled with lower cost of sales and SG&A expenses that enabled Deckers Outdoor Corporation (DECK - Free Report) to post better-than-expected second-quarter fiscal 2018 results. (Read More)
Pinnacle Foods Inc. posted third-quarter 2017 results, wherein both the top and bottom line outpaced the Zacks Consensus Estimate and the latter also grew year over year. (Read More)
Colgate-Palmolive Co. (CL - Free Report) posted adjusted earnings of 73 cents a share in third-quarter 2017, in line with the Zacks Consensus Estimate and flat with the prior-year quarter. (Read More)
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Stock Market News For Oct 27, 2017
Markets closed mostly higher on Thursday backed by strong earnings from some prominent stocks. Both the Dow and the S&P 500 ended in the green. However, biotech stocks tanked, pulling the healthcare sector lower and weighing on the Nasdaq. Meanwhile, the House of Representatives cleared the budget blueprint with majority of the Republicans voting in favor of the move. Further, the ECB announced plans to extend the quantitative easing program.
The Dow Jones Industrial Average (DJIA) closed at 23,400.86, gaining 0.3%. The S&P 500 Index (INX) increased 0.1% to close at 2,560.40. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,556.77, increasing 0.1%. Advancing issues outnumbered decliners on the NYSE by a 1.22-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.14-to-1 ratio. The CBOE VIX decreased almost 2% to close at 11.01.
Dow, S&P 500 Continue to Gain
The Dow amassed 71.4 points on Wednesday to finish in positive territory. Gains for the blue-chip index were powered by shares of Nike (NKE - Free Report) , which gained 3.4% after the shoe and apparel retailer raised the revenue growth target for the coming years. These announcements were made at the company’s investor day. Nike’s shares were the biggest gainers for the Dow.
The S&P 500 also ended in the green, gaining 3.3 points in the process. Of the 11 major segments of the S&P 500, nine finished in the green, with materials leading the gainers. The Materials Select Sector SPDR ETF (XLB) gained 1.3% to close at 59.43. Such gains were made possible after shares of Union Pacific Corp. (UNP - Free Report) surged 5.6% following an earnings beat in the third quarter, 2017. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The rail transportation provider’s third-quarter 2017 earnings of $1.50 beat the Zacks Consensus Estimate of $1.49 per share. The bottom line expanded 10.3% on a year-over-year basis. Results were aided by higher revenues. Operating revenues of $5,408 million also surpassed the Zacks Consensus Estimate of $5,306.5 million. (Read More)
Biotech Shares Weigh on the Nasdaq
Meanwhile, the Nasdaq suffered losses as it gave up 7.1 points to end in the red, just ahead of the release of earnings from some of the major tech stocks from FAAMG group such as Alphabet (GOOGL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) . Losses for the Nasdaq were incurred after the biotech shares tanked. This had negative ramifications for the overall healthcare sector as well. The iShares Nasdaq Biotechnology ETF (IBB) plummeted 2.3%, pulling the overall healthcare sector lower by 1%.
Biotech stocks suffered losses after shares of Celgene Corp. tanked 16.4% despite surpassing the earnings expectations in the third quarter. The company missed out on revenue expectation on Q3 and suffered losses. Celgene reported mixed results in third-quarter 2017 wherein earnings beat expectations but sales failed to meet estimates. (Read More)
House Passes Budget Blueprint
House of Representative passed the budget blueprint on Thursday. This officially unlocked a procedure using which the tax code can be changed using a simple majority of only Republican votes, instead of the 60 votes norm usually followed. Trump and his fellow Republicans had campaigned on bringing about much needed tax reforms and such an event gets the members of GOP even closer to delivering on their promise.
In a 216 to 212 vote, the House cleared the budget blueprint, with as many as 20 Republicans voting against it. Meanwhile, House Ways & Means Committee Chairman Kevin Brad stated that the budget Bill would be introduced on Nov 1. Apart from tax repatriation, the framework also promises to almost double the standard deduction of tax rates and add as much as $1.5 trillion to deficits over a period of 10 years.
ECB Extends Quantitative Easing
The ECB announced on Thursday that it will be slashing the level of bond purchases every month, but, will extend the length of the time the stimulus program runs. ECB promised to buy €30 billion in bonds from €60 billion, beginning in January. The central bank intends to extend its monetary stimulus program until at least September 2018.
The ECB also reiterated that interest rates would remain at their current levels well past the end of the quantitative easing (QE) program.
Economic Data
Pending home sales for the month of September remained unchanged from August, whereas the consensus estimate for the period was a decline of 0.5%. With this, the index hit a two and a half year low. Such a lackluster show can be attributed to extremely short supply amidst strong demands. Meanwhile, initial jobless claims decreased to 233,000 — still languishing at historically low levels. The consensus estimate for the period was an increase to 235,000.
Stocks That Made Headlines
Deckers Defies Retail Challenges, Tops on Q2 Earnings
It was not UGG but sturdy sales performance across HOKA ONE ONE and Teva brands coupled with lower cost of sales and SG&A expenses that enabled Deckers Outdoor Corporation (DECK - Free Report) to post better-than-expected second-quarter fiscal 2018 results. (Read More)
Pinnacle Foods Q3 Earnings Beat, Up Y/Y, Stock Down
Pinnacle Foods Inc. posted third-quarter 2017 results, wherein both the top and bottom line outpaced the Zacks Consensus Estimate and the latter also grew year over year. (Read More)
Colgate Dips on Hiked Charges View, Q3 Earnings In Line
Colgate-Palmolive Co. (CL - Free Report) posted adjusted earnings of 73 cents a share in third-quarter 2017, in line with the Zacks Consensus Estimate and flat with the prior-year quarter. (Read More)
Leggett Narrows 2017 View After Mixed Q3 Earnings
Leggett & Platt Incorporated (LEG - Free Report) reported mixed results for third-quarter 2017. (Read More)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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