Stock Market News for April 22, 2015 - Market News
Benchmarks finished Tuesday’s trading session mostly lower following a mixed bag of earnings reports. While, a handful of discouraging quarterly results dragged the Dow and the S&P 500 down, the Nasdaq bucked the trend banking on a new deal in the biotechnology sector.
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The Dow Jones Industrial Average (DJI) declined 0.5% to close at 17,949.59. The Standard & Poor’s 500 (S&P 500) decreased almost 0.2% to 2,097.29. The tech-laden Nasdaq Composite Index closed at 5,014.10; gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) dropped 0.4% to settle at 13.25. A total of about 5.8 billion shares were traded on Tuesday, less than the year-to-date average of 6.7 billion. Advancers outpaced declining stocks on the NYSE. For 49% stocks that advanced, 48% declined.
Investors continue to assess a barrage of first quarter earnings report on Tuesday. The Travelers Companies Inc. (TRV) reported earnings per share of $2.53 in the first quarter of 2015, missing the Zacks Consensus Estimate by 1.2%. Shares of Travelers dropped 4%, making it the worst performer among the Dow components.
Another Dow component, E. I. du Pont de Nemours and Company (DD) posted first quarter earnings per share of $1.34, beating the Zacks Consensus Estimate of $1.32. However, this was lower than $1.58 per share registered a year ago. DuPont also expects its earnings for the year to be affected by a stronger dollar. Shares of DuPont declined almost 3%.
Shares of International Business Machines Corporation (IBM) dropped 1.1% after the company reported first quarter revenues of $19.6 billion that lagged the Zacks Consensus Estimate of $19.7 billion. However, first quarter 2015 earnings per share of $2.91 came ahead of the Zacks Consensus Estimate of $2.84.
United Technologies Corporation (UTX) shares gained 0.4% after the company posted first quarter earnings per share of $1.51, which beat the Zacks Consensus Estimate of $1.44. Shares of Kimberly-Clark Corporation (KMB) jumped 5.4% after the company reported first quarter earnings per share of $1.42, beating the Zacks Consensus Estimate of $1.33.
Including these reports, 86 S&P 500 members posted first quarter earnings up 12.7% on 3.8% revenue gains, with 73.3% beating earnings per share estimates. Among the 86, 32.7% were able to come ahead of top-line expectations.
Meanwhile, new deal between Mylan N.V. (MYL) and Teva Pharmaceutical Industries Limited (TEVA) boosted bio-tech stocks, which eventually had a positive impact on the Nasdaq. Teva Pharmaceutical offered to acquire Mylan for about $40 billion or $82 a share in cash and stock. Shares of Teva Pharmaceutical and Mylan gained 1.4% and 8.9%, respectively.
Bio-tech stocks including Amgen Inc. (AMGN), Vertex Pharmaceuticals Incorporated (VRTX) and Regeneron Pharmaceuticals, Inc. (REGN) increased 1.5%, 5.3% and 2.4%, respectively. Overall, iShares Nasdaq Biotechnology (IBB) gained 1.8%.
However, 6 out of 10 sectors of the S&P 500 ended in the red. The Energy Select Sector SPDR (XLE) dropped 1.1%, the highest among the S&P 500 sectors. Energy shares declined due to drop in oil prices. Prices of WTI crude oil and Brent crude oil decreased 2% and 2.2% to $55.26 per barrel and $62.08 a barrel, respectively.
Dow components Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX) declined 0.4% and 0.5%, respectively. Other key energy stocks such as Schlumberger Limited (SLB), EOG Resources, Inc. (EOG) and Transocean Ltd. (RIG) decreased 1.3%, 1.2% and 5.5%, respectively.
The Utilities Select Sector SPDR (XLU) declined 0.9% and was the second biggest loser among the S&P 500 sectors. Key utilities stocks including NextEra Energy Inc (NEE), Exelon Corporation (EXC), Southern Company (SO), PG&E Corporation (PCG) and Duke Energy Corporation (DUK) dropped 1.1%, 1.6%, 0.8%, 1.1% and 0.7%, respectively.
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TRAVELERS COS (TRV): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
KIMBERLY CLARK (KMB): Free Stock Analysis Report
MYLAN NV (MYL): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
REGENERON PHARM (REGN): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
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TRANSOCEAN LTD (RIG): Free Stock Analysis Report
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