Big Names Hit by Stock Fall
Stocks concluded a decreasing Thursday as earnings reports continued to go down, with some big names falling after hours on quarterly misses.
The Dow Jones industrial average led the downside with a 0.6% loss, the S&P 500 gave up 0.5%, and the Nasdaq edged nearly 0.05% lower. Volume was mixed in the stock market today, slightly higher on the NYSE but lower on the Nasdaq, according to preliminary figures. Losers topped winners by a 5-3 margin on the NYSE; decliners barely outpaced advancers on the Nasdaq.
The biggest losers included transportation, retail and homebuilder stocks. Oil drillers also lagged, as West Texas intermediate crude slid 2% to $43.26 a barrel. United Continental (UAL) slumped 10% to a two-month low in turbulent trade. The airline on Wednesday reported Q1 earnings and sales that fell 19% and 5%, respectively.
On the Dow, Travelers (TRV) gapped down and sank 6%, closing well below its 50-day moving average in heavy turnover. The insurance giant reported Q1 revenue that beat, but earnings that missed consensus estimates.
Mellanox (MLNX) gapped down and plunged 12% in massive volume. Shares fell below their 50-day line and undercut a 47.79 buy point of a cup with handle. The chip designer announced Q1 profit and sales that topped views, but its Q2 revenue outlook came in below estimates.
Apparel makers and drug stocks outperformed. Among apparel makers, Under Armour (UA) gapped up and leapt 7% to a four-month high, clearing a 34.33 buy point of a cup with handle in fast trade. The sports apparel and athletic shoe maker reported Q1 results that beat forecasts.
On the IBD 50, Citrix Systems (CTXS) surged as much as 12% to a 16-year high before easing to close with a 4% gain. The stock cleared an 84.27 buy point in brisk trade but closed slightly below the entry. RBC Capital and Needham raised their price targets on the software maker, whose Q1 results late Wednesday crushed forecasts.
After the close Thursday, Starbucks (SBUX) reported fiscal Q2 earnings and revenue that missed views, and provided a lower-than-expected outlook. Shares fell 5% after hours.
Alphabet (GOOGL) was also down in extended trading, after the Internet giant’s Q1 results came in below forecasts. As usual, the company didn’t offer forward guidance.
Microsoft (MSFT) fell 4% after hours, also on a miss on both the top and bottom lines.
Economic news was mixed. Jobless claims fell for a second week, by more than 2% to 247,000, well below views for 265,000 claims. The Conference Board’s leading economic indicators index climbed 0.2% in March, up from a 0.1% dip in February but below projections for a 0.5% increase.
A light slate Friday includes the Purchasing Managers’ Manufacturing Index for April and Baker-Hughes’ weekly rig count.
Earnings are on tap Friday from McDonald’s (MCD), Caterpillar (CAT), General Electric (GE) and American Airlines (AAL).