74.81 +0.07 (0.09%)
After hours: 4:42PM EDT
|Bid||0.00 x 800|
|Ask||0.00 x 1300|
|Day's Range||74.34 - 75.55|
|52 Week Range||70.03 - 80.96|
|PE Ratio (TTM)||335.16|
|Beta (3Y Monthly)||0.96|
|Expense Ratio (net)||0.14%|
Yahoo Finance's Seana Smith, Scott Gamm and Brian Cheung on the biggest headlines moving the markets in afternoon trading.
Wall Street expects Honeywell (HON) to post adjusted EPS of $1.99 in Q3 2018, which implies an increase of 13.7% year-over-year. In Q3 2017, HON reported adjusted EPS of $1.75. HON has beaten Wall Street expectations in six quarters since 2017, and it appears that it is all set to beat expectations again.
Over the past few weeks, Canadian Pacific Railway’s (CP) rail traffic has displayed strong momentum. In Week 40, the company registered 8.4% YoY (year-over-year) carload traffic growth. In the week, CP hauled ~36,000 railcars excluding intermodal traffic compared to ~33,200 units in Week 40 of 2017.
In Week 40, Eastern US rail giant Norfolk Southern (NSC) recorded a 3.5% YoY (year-over-year) fall in carload traffic. The company hauled ~67,900 railcars sans intermodal units in the week compared to ~70,400 in the corresponding week last year.
On October 10, the AAR (Association of American Railroads) released the weekly traffic data for Week 40, which ended on October 6. The rail data are divided into carload traffic and intermodal units. Intermodal units are expressed in containers and truck trailers. There are 12 major North American railroad companies that submit weekly data to the AAR.
On October 10, Caterpillar (CAT) declared its latest quarterly dividend. Caterpillar has been paying dividends since 1933. Caterpillar has also announced the key dates for its third-quarter dividend payment.
General Electric Co. said Friday it was delaying the release of its third-quarter results by five days to Oct. 30, to allow new Chief Executive Larry Culp to complete his initial business reviews and sit visits. The stock fell 1.3% in morning trade, and has now shed 7.7% amid a four-session losing streak. The industrial conglomerate was previously scheduled to report results, for the quarter ended Sept. 30, on Oct. 25, before the market opens. In the third-quarter webcast, scheduled for 8:00 a.m. Eastern, Culp while share his initial observations, with more detail expected in early 2019. The stock has still run up 11.4% since Culp was announced as CEO before the Oct. 1 open, while the SPDR Industrial Select Sector ETF has lost 5.3% and the Dow Jones Industrial Average has dropped 4.4%.
Shares of Fluor Corp. tumbled 14% in morning trade Thursday, to pace the industrial sector's decliners, after the engineering, construction and maintenance warned of a third-quarter revenue shortfall. The company said late Wednesday that it expects revenue of $4.6 billion, below the FactSet consensus at the time of $4.95 billion. The company expects pre-tax earnings of $125 million for the quarter, which includes charges of $46 million related to close-out efforts on a project in Europe and $35 million for forecast revisions on a gas-fired power project in Florida. Fluor also said it had new awards of $9 billion, compared with the FactSet consensus for new business awards of $5.4 billion at the end of September. Analyst Daniel Scott at MKM Partners reiterated his neutral rating and $56 stock price target. "This quarter will likely, in our opinion, mark the eighth miss out of the last nine quarters, and despite strong new awards last quarter, this quarter, and likely next quarter, execution remains a concern," Scott wrote in a note to clients. The stock, which hit a five-month low Thursday, has lost 6.2% year to date, while the SPDR Industrial Select Sector ETF has slipped 0.8% and the Dow Jones Industrial Average has gained 3.3%.
Canadian Pacific Railway (CP) registered 6% YoY (year-over-year) carload traffic growth in week 39. CP moved ~37,100 railcars excluding intermodal traffic in the week compared to ~35,000 units in the same week last year. The railroad’s YoY rail traffic volume gain of 2.8% was in third place during the week. Union Pacific (UNP) remained in first place with 4.9% gains. CSX (CSX) with a 4% gain ranked second. Kansas City Southern (KSU) ranked fourth in terms of week 39’s total volume gains.
Shares of Whirlpool Corp. sank 5.4% to pace the industrial sector decliners, after J.P. Morgan downgraded the home appliances maker, citing risks to growth and margins from continued weakness in appliance industry shipments. The stock was on track for its lowest close since Feb. 11, 2013. Analyst Michael Rehaut cut his rating to neutral after being at overweight since March 2016. He said U.S. Core 6 appliance industry shipments have remained consistently weak over the last several months, declining by an average of 5% year-over-year over the last five months through August, which would put year-to-date industry shipments down 1% versus Whirlpool's outlook for full-year growth of 1% to 2%. "As a result, we believe downside risk exists to [Whirlpool's] industry outlook as well as its North America margins due to reduced production levels and a potentially more competitive industry backdrop resulting from reduced demand as well as possibly pricing power," Rehaut wrote in a note to clients. The stock, which was the biggest decliner in the SPDR Industrial Select Sector ETF on Tuesday, has tumbled 31% over the past three months, while the industrial ETF has gained 6.2% and the S&P 500 has edged up 3.5%.
Cummins Inc. announced Tuesday a new $2 billion stock repurchase program, which will kick in once the previous $1 billion program is completed. The stock fell 0.5% in afternoon trade. Based on current share prices, the new buyback program would represent about 13.2 million shares, or about 8.1% of the shares outstanding. Separately, the engine maker declared a regular quarterly dividend of $1.14 a share. At current stock prices, that implies a dividend yield of 3.00%, compared with the yield on the SPDR Industrial Select Sector ETF of 1.78% and the implied yield for the S&P 500 of 1.90%, according to FactSet. Cummins shares have lost 14% year to date, while the industrial ETF has gained 3.4% and the S&P 500 has advanced 8%.
The AAR (Association of American Railroads) published its weekly traffic data on October 3. The data pertained to 12 major North American railroads during week 39, which ended on September 29. The rail traffic data is grouped into carload traffic and intermodal units. Intermodal units are expressed in containers and truck trailers.
Investors are rarely excited by the industrial sector. Unfortunately, when it comes to sheer performance in 2018, industrial ETFs are living up to that less-than-thrilling billing. As of Oct. 3rd, the Industrial Select Sector SPDR (NYSERCA:XLI), the largest industrial exchange traded fund (ETF) by assets, is up 6.5% year-to-date, well behind the 10.7% returned by the S&P 500.