Here Are Three Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI ended higher Thursday but the Nasdaq I:IXIC fell sharply after Facebook Inc. (FB) - Get Report tumbled.
- Facebook dropped 20% after a revenue miss and after the social media giant pointed to slower growth rates.
- Advanced Micro Devices Inc. (AMD) - Get Report rose 14% after the chipmaker swung to a profit in the second quarter and beat analysts' estimates.
Wall Street Overview
Stocks ended mixed on Thursday, July 26, as investors reacted with caution to a preliminary agreement between the European Union and the United States to move toward the elimination of trade barriers and as shares of Facebook Inc. (FB) - Get Report tumbled after the company warned of slower growth.
President Trump called talks in Washington with European Commission President Jean-Claude Juncker a "breakthrough ... that nobody thought possible" after the pair agreed to work toward a zero-tariff trade relationship and reform the World Trade Organization.
The social media giant reported revenue that missed analysts' expectations for the first time since 2015, and projected slower growth.
- Facebook Tanks on Revenue Miss, Though EPS Beats Estimates
- Ripple Effects of Facebook Slump Already Spreading
Facebook Chief Financial Officer Dave Wehner said he expects the company's annual revenue growth to decelerate in the third and fourth quarters. He also said efforts to grow and promote "certain engaging experiences like Stories that currently have lower levels of monetization" would have an impact.
Wehner also indicated that operating margins would trend toward the mid-30s on a percentage basis over the next few years.
McDonald's Corp. (MCD) - Get Report fell 1.8% after it reported adjusted earnings of $1.99 a share in the second quarter, beating estimates of $1.92. Revenue of $5.35 billion fell from $6.05 billion a year earlier. Analysts had forecast revenue of $5.32 billion.
The hamburger chain said global same-store sales rose 4%, with U.S. growth of 2.6%. Analysts had expected U.S. sales to rise 3%.
Comcast Corp. (CMCSA) - Get Report posted stronger-than-expected second-quarter earnings Thursday even as America's biggest cable company lost tens of thousands of subscribers to its video service amid the ongoing "cord cutting" that continues to fragment the media industry. Shares rose 3.8%.
Under Armour Inc. (UAA) - Get Report posted a second-quarter adjusted loss of 8 cents a share, matching estimates. Revenue of $1.17 billion topped analysts' forecasts of $1.15 billion. The stock rose 5%.
After the bell Amazon.com Inc. (AMZN) - Get Report posted earnings of $5.07 a share, more than double the $2.48 consensus of analysts. Revenue missed estimates, however. Shares rose 4% in after hours trading.
Qualcomm Inc. (QCOM) - Get Report topped fiscal third-quarter earnings expectations, and the chipmaker said it would walk away from its purchase of NXP Semiconductors NV (NXPI) - Get Report . Qualcomm shares rose 7%.
PayPal Holdings Inc. (PYPL) - Get Report beat earnings and revenue estimates in its second quarter, but the payments giant's revenue outlook for the third quarter fell slightly short of analysts' expectations. Shares fell 2.4%.
United Natural Foods Inc. said Thursday it would buy SuperValu Inc. (SVU) for $32.50 a share in cash, or about $2.9 billion. Supervalu shares jumped 65% to $32.17.
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