Wall Street closed mixed on Thursday following mixed financial results for the first quarter of 2019. The Dow ended in the red while the S&P 500 lost marginally. Meanwhile, the Nasdaq Composite finished in positive territory.
The Dow Jones Industrial Average (DJI) closed at 26,462.08, declining 0.5% or 134.97 points. The S&P 500 Index (INX) decreased 1,08 points to close at 2,926.17. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 8,118.68, gaining 0.2%. A total of 6.64 billion shares were traded on Thursday, inline with the last 20-session average. Decliners outnumbered advancers on the NYSE by 1.80-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 1.47-to-1 ratio. The CBOE VIX increased 0.8% to close at 13.25.
How Did the Benchmarks Perform?
The Dow ended in negative territory with 16 stocks of the 30-stock blue-chip index finishing in the red while fourteen ended in green. The tech-laden Nasdaq Composite finished in the green owing to strong performance by large cap stocks. The S&P 500 also closed in the red. The Industrials Select Sector SPDR (XLI) plunged 2%. Notably, seven out of eleven sectors of the benchmark index closed in the red while four finished in the green.
Mixed First-Quarter Earnings Results
Microsoft Corp. MSFT delivered third-quarter fiscal 2019 earnings of $1.14 per share, which beat the Zacks Consensus Estimate of $1.00 per share. Revenues improved 5% year over year to $13.5 billion, outpacing the Zacks Consensus Estimate of $13.4 billion. Revenues of $30.57 billion also surpassed the Zacks Consensus Estimate of $29.78 billion. Shares of Microoft was up 3.3% following the earnings result. (Read More)
Facebook Inc. FB reported first-quarter 2019 earnings of $0.85 per share that lagged the Zacks Consensus Estimate by a whopping $0.81. However, revenues of $15.08 billion comfortably surpassed the Zacks Consensus Estimate of $14.97 billion. Monthly active users (MAUs) were 2.375 billion, up 8.2% year over year. Daily Active Users (DAUs) were 1.56 billion on average for March 2019, increasing 7.8% year over year and representing 66% of MAUs. Shares of Facebook was up 5.9% following the earnings result. (Read More)
3M Company MMM reported first-quarter 2019 adjusted earnings of $2.23 per share, which lagged the Zacks Consensus Estimate of $2.50. The company reported total sales of $7,863 million, which missed the Zacks Consensus Estimate of $8,091 million. Shares of 3M Company crushed 13% following the earnings result, reflecting its largest single-day decline since Oct 19, 1987. (Read More)
Both Microsoft and Facebook carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Department of Commerce reported that durable goods orders surged 2.7% in March, exceeding the consensus estimate of 0.7%. February’s data was revised upward to show a decline of 1.1% from the previous data of a decline of 1.6%. Meanwhile, core non-defense capital goods data (excluding aircrft) jumped 1.3% in March, its largest gain since July 2018. This metric is a closely watched proxy for business spending plans. Orders for computers and electronic products climbed 2.2%. Orders for machinery rose 0.3%. Orders for motor vehicles and parts surged 2.1% and orders for transportation equipment soared 7.0%.
The Department of Labor reported thatinitial claims for state unemployment benefits jumped 37,000 to a seasonally adjusted 230,000 for the week ended Apr 20, marking the highst in 19-months. The consensus estimate was 202,000. Last reported week’s data was revised upward by 1,000 to 193,000.The number of people receiving benefits after an initial week of aid – popularly known as continuing clamis -- increased 1,000 to 1.66 million for the week ended Apr 13.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Facebook, Inc. (FB) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
To read this article on Zacks.com click here.