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Stock Market News For Apr 26, 2019

Zacks Equity Research
In the latest trading session, Alphabet (GOOGL) closed at $1,116.70, marking a -0.77% move from the previous day.

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.

Economic Data

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

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Facebook, Inc. (FB) : Free Stock Analysis Report
 
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