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European and US Markets Decline Sharply on Wednesday

U.S. stocks were in the red on Wednesday, with investors worrying about global growth. The Dow Jones Industrial Average tumbled1.86% to 26,078, the S&P 500 Index slid 1.79% to 2,877 and the Nasdaq Composite Index declined 1.56% to 7,785.

Shares of Lennar Corp. (LEN) gained more than 3.5% on Wednesday after announcing third-quarter results. The company posted earnings of $1.59 per share on $5.86 billion in revenue. It beat earnings estimates by 27 cents and revenue expectations by $380 million.


"We are pleased to announce our results for the third quarter, where we achieved net earnings of $513.4 million, or $1.59 per diluted share, compared to $453.2 million, or $1.37 per diluted share in the prior year," Executive Chairman Stuart Miller said. "As the market continued to solidify through the third quarter, stimulating both the affordability and demand for homes, our new orders and deliveries increased 9% and 7%, respectively, from the prior year."

The gross margin on home sales reached $1.1 billion during the quarter, or 20.4%, flat from the prior-year quarter. In the financial services segment, operating earnings were $60.5 million, driven by an improvement in the mortgage business. In the multifamily segment, operating earnings were $10.5 million.

Moreover, the company repurchased 6.1 million shares of its Class A common stock for $295.9 million at an average price of $48.41 per share.

During the quarter ended June 30, Ray Dalio (Trades, Portfolio) established a position, buying 135,271 shares. Ken Fisher (Trades, Portfolio) trimmed his stake by 2% to 1,524,363 shares, while Mario Gabelli (Trades, Portfolio) sold out of the stock.

Gainers

  • Paychex Inc. (NASDAQ:PAYX) +1.8%
  • Johnson & Johnson (NYSE:JNJ) +1.6%
  • Wynn Resorts Ltd. (NASDAQ:WYNN) +1.2%
  • Newmont Goldcorp Corp. (NYSE:NEM) +0.8%
  • Cimarex Energy Co. (NYSE:XEC) +0.8%



Losers

  • Nektar Therapeutics Inc. (NASDAQ:NKTR) -6%
  • Capri Holdings Ltd. (NYSE:CPRI) -5.8%
  • Macy's Inc. (NYSE:M) -5.8%
  • Kohl's Corp. (NYSE:KSS) -5.8%
  • American Airlines Group Inc. (NASDAQ:AAL) -5.3%



Global markets

The main European stock markets traded deep in the red. The U.K.'s FTSE 100 declined 3.23%, France's CAC 40 fell 3.12%, Germany's Dax swelled 2.76% and Spain's Ibex 35 retreated 2.77%.

In Asia, Japan's Nikkei 225 fell 0.49%, India's BSE Sensex slid 0.94%, Hong Kong's Hang Seng declined 0.19% and China's Shanghai Composite lost 0.92%.

Disclosure: The author holds no positions in any stocks mentioned.

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This article first appeared on GuruFocus.