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US Market Indexes Mostly Lower Thursday

- By Omar Venerio

U.S. market indexes were mostly lower on Thursday. The Dow Jones Industrial Average fell more than 55 points to 24,520, the S&P 500 index lost 0.05% to 2,637 and the Nasdaq Composite Index advanced 0.41% to 7,054.

Shares of STMicroelectronics NV (STM) jumped more than 11% on Thursday after the company announced fourth-quarter results. It posted revenue of $2.65 billion, reflecting 7.3% year-over-year growth and beating expectations by $50 million. Earnings were 46 cents per share, beating estimates by 6 cents.


"2018 has been an important year for ST," President and CEO Jean-Marc Chery said. "In line with the objectives we had set, we achieved significant revenue growth across our product groups, as well as a strong expansion of profitability and cash flow from operations."

Gross profit reached $1.06 billion, a 5.6% year-over-year increase. Further, the gross margin was 40.0%, 20 basis points higher than the midpoint of the guidance. However, it decreased 70 basis points from the prior-year period due to currency effects.

Looking ahead to the first quarter of 2019, the company expects net revenues to decrease approximately 20.7% sequentially (5.7% year over year) with a gross margin of 39%.

Gainers

  • Xilinx Inc. (XLNX)
  • Applied Materials Inc. (AMAT)
  • Micron Technology Inc. (MU)
  • Textron Inc. (TXT)
  • Analog Devices Inc. (ADI)



Losers

  • Freeport-McMoRan Inc. (FCX)
  • Altria Group Inc. (MO)
  • Advance Auto Parts Inc. (AAP)
  • Pfizer Inc. (PFE)



Global markets

The main European stock markets traded higher. The U.K.'s FTSE 100 declined 0.35%, France's CAC 40 rose 0.65%, Germany's Dax closed 0.53% higher and Spain's IBEX 35 gained 0.23%.

In Asia, Japan's Nikkei 225 fell 0.09%, India's BSE Sensex gained 0.24%, Hong Kong's Hang Seng advanced 0.42% and China's Shanghai Composite jumped 0.41%.

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

This article first appeared on GuruFocus.