Stocks Are Mixed as Crude Oil Rebounds
Stocks were mixed on Tuesday morning as crude oil rebounded and pushed the energy sector higher.
The S&P 500 added 0.03%, the Dow Jones Industrial Average rose 0.37%, and the Nasdaq fell 0.03%.
Crude oil prices rebounded after tumbling on Monday. Prices had been under pressure after the latest read on Chinese factory activity showed continued weakness and as Russia reported production at a post-Soviet high. Oil was on watch ahead of Wednesday's weekly domestic inventories data. West Texas Intermediate crude added 1.5% to $46.84 a barrel on Tuesday.
A surge in Chevron (CVX) - Get Report and Exxon Mobil (XOM) - Get Report shares boosted the Dow, while other major oilers including Schlumberger (SLB) - Get Report , Royal Dutch Shell (RDS.A) , BP (BP) - Get Report and Total (TOT) - Get Report added to the S&P 500.
Factory orders in the U.S. fell 1% in September, narrower than the 2.1% slump recorded in August. Economists had expected orders to decline 0.9%. Excluding transportation, orders fell 0.6%, slightly narrower than a 1.1% decline a month earlier.
Car sales enjoyed a double-digit percentage bump in October. Fiat Chrysler (FCAU) - Get Report posted a 15% jump in U.S. car sales in October. Its Jeep model, in particular, was a hot seller, posting a 33% sales spike. Sales were also boosted by an October with five weekends compared to four a year earlier.
General Motors (GM) - Get Report also posted a better-than-expected October. The Detroit automaker reported a 16% increase in car sales compared to an expected 12% increase. Ford (F) - Get Report sales rose 13.4% last month. However, the reading was slightly lower than an expected 14.2% increase in sales.
King Digital (KING) spiked more than 14% after Activision Blizzard (ATVI) - Get Report agreed to buy the video game maker in a deal worth a total $5.9 billion. The offer of $18 a share is a 20% premium to King Digital's closing price on Monday. The acquisition brings together Activision, the maker of popular role-playing game Call of Duty, with the creator of mobile app game Candy Crush.
Sprint (S) - Get Report said its second-quarter loss widened from a year earlier to 15 cents a share from a penny a share a year earlier. Analysts had expected a net loss of 7 cents. The telecom generated revenue of $7.98 billion, below estimates of $8.12 billion. However, wireless net additions rose significantly as promotional efforts paid off. Additions jumped 1.06 million, up from 675,000 a year earlier.
Office Depot (ODP) - Get Report shares were on watch after reporting an in-line third quarter. The office supplies chain earned adjusted profit of 16 cents a share, while revenue of $3.69 billion fell just shy of $3.72 billion. The company also increased its expected store closures to 180 locations by the end of this year, up from 175.
FitBit (FIT) - Get Report fell more than 6% after announcing that it will offer 21 million shares in a stock offering. The company plans to sell 7 million of its own shares and 14 million from existing shareholders. The wearables company also said lockup restrictions for 2.3 million shares will end on Nov. 4.
Avis Budget (CAR) - Get Report slumped after missing analysts' quarterly estimates on its top- and bottom-lines. The rental car company earned $1.98 a share, 4 cents below estimates, while revenue of $2.58 billion fell shy by $20 million.
Kellogg (K) - Get Report fell more than 3% after quarterly sales dropped 9% on a stronger U.S. dollar. Revenue of $3.3 billion fell short of expectations of $3.42 billion. Adjusted profit of 85 cents a share was a penny above estimates.
Archer Daniels Midland (ADM) - Get Report slipped 6% after reporting quarterly profit of 60 cents a share, a dime below forecasts. The agricultural company said a stronger dollar and weaker ethanol profit margins contributed to the below-consensus results.
AIG (AIG) - Get Report slid 4% after missing quarterly estimates by a mile. The insurance company earned 52 cents a share, nearly half estimates of $1.03. The company is facing increased pressure to address structural problems after activist investor Carl Icahn pushed for a breakup.
American Eagle Outfitters (AEO) - Get Report jumped 8% after announcing it had acquired Tailgate Clothing Company for $11 million, a sports line that aligns with the retail chain's brand. The company also said third-quarter comparable-store sales rose 9%.