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Stock Market News for Oct 24, 2019

Zacks Equity Research

U.S. stocks closed higher on Wednesday despite weak earnings results declared by some corporate behemoths. Moreover, investors are closely watching developments related to Brexit. However, absence of news from trade war front resulted in muted trading volume. All three major stock indexes finished in the green.

The Dow Jones Industrial Average (DJI) gained 0.2% to close at 26,833.95. The S&P 500 rose 0.3% to close at 3,004.52. Meanwhile, the Nasdaq Composite Index closed at 8,119.79, increasing 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 3.1% to close at 14.01. A total of 6.11 billion shares were traded Wednesday, lower than the last 20-session average of 6.46 billion. Advancers outnumbered decliners on the NYSE by a 1.75-to-1 ratio. On Nasdaq, a 1.17-to-1 ratio favored advancing issues.

How Did The Benchmarks Perform?

The Dow closed in positive territory with 19 components of the 30-stock blue-chip index closing in the green while 11 ended in red. The Nasdaq Composite finished in the green due solid performance of large-cap technology stocks. The S&P 500 also ended in the green. Both the Energy Select Sector SPDR (XLE) and the Communication Services Select Sector SPDR (XLC) gained 0.8%. Notably, nine out of total 11 sectors of the benchmark index closed in the green while two finished in red.

Weak Earnings Results

Caterpillar Inc. CAT reported third-quarter 2019 adjusted earnings per share of $2.66 lagging the Zacks Consensus Estimate of $2.83. Revenues were$12.8 billion, missing the Zacks Consensus Estimate of $13.4 billion.

The Boeing Co. BA reported adjusted earnings of $1.45 per share for third-quarter 2019, which missed the Zacks Consensus Estimate of $2.04.Revenues amounted to $19.98 billion, which surpassed the Zacks Consensus Estimate of $19.34 billion.

Las Vegas Sands Corp. LVS came out with quarterly earnings of $0.75 per share, missing the Zacks Consensus Estimate of $0.76 per share.Revenues of $3.25 billion missed, the Zacks Consensus Estimate by 1.94%.

However, shares of Caterpillar, The Boeing and Las Vegas Sands gained 1.2%, 1% and 1%, respectively. The Boeing and Las Vegas Sands carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Uncertainty About Brexit

On Oct 22, the UK parliament voted to advance prime minister Boris Johnson’s Brexit bill, the legislation that will put his Brexit deal into UK domestic law. However, the law makers rejected the timeline of Oct 31 indicating the parliament wanted more time to scrutinize the bill. Therefore, Brexit is unlikely to happen on scheduled date of Oct 31. Several British lawmakers are demanding three months extension to reach an amicable solution.

Economic Data

The Energy Information Administration reported that fell unexpectedly by 1.7 million barrels for the week ended Oct 17. Oil Supply declined for the first time in six weeks. Consequently, the price of U.S. benchmark WTI crude rose 2.7%, to settle at $55.97 a barrel on the New York Mercantile Exchange. Likewise, the price of global benchmark Brent crude gained 2.5%, to $61.17 a barrel on the ICE Futures Europe exchange.

Stocks That Made Headline

Equifax Beats Q3 Earnings Estimates, Cuts '19 EPS View

Equifax Inc. EFX reported solid third-quarter 2019 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate. (Read More)

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