Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell on Wednesday after shares of International Business Machines Corp. (IBM) - Get Report slumped as the tech giant posted a third-quarter revenue miss.
- Netflix Inc. (NFLX) - Get Report rose 3.3% after third-quarter subscriber growth beat analysts' expectations.
- Abbott Laboratories (ABT) - Get Report fell 1.6% after it trimmed the upper end of its full-year profit outlook as international sales were hit by a stronger U.S. dollar.
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Wall Street Overview
Stocks fell on Wednesday, Oct. 17, following the biggest single-day surge on Wall Street in more than six months, as investors shifted their focus to U.S. corporate earnings season.
International Business Machines Corp. (IBM) - Get Report tumbled by 7.6%, keeping the Dow Jones Industrial Average from making any significant moves into positive territory. The Dow fell 91 points, or 0.4%, to 25,706.68, the S&P 500 was little changed, sliding by 0.03%, and the Nasdaq also fell fractionally, by 0.04%.
The streaming giant said it added 1.09 million subscribers in the U.S. in the quarter and 5.87 million subscribers globally, well ahead of analyst's estimates of 674,000 U.S. additions and 4.46 million global adds.
Profit in the quarter was 89 cents a share on revenue of $4 billion. Analysts were calling for net income of 68 cents a share on revenue or $3.99 billion.
Netflix guided for 9.4 million net streaming additions in the fourth quarter, well above consensus estimates of 7.7 million.
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IBM's third-quarter revenue fell 2.1% to $18.76 billion and missed forecasts of $19.1 billion. Adjusted earnings of $3.42 a share beat estimates by 2 cents.
IBM's Technology Services and Cloud Platforms group reported revenue of $8.3 billion, down 2% from a year earlier. Analysts were calling for revenue of $8.43 billion. The company's Cognitive Solutions segment, which includes solutions software and transaction processing software, reported quarterly revenue of $4.1 billion, down 6%.
Home Depot (HD) - Get Report fell 4.4% to $185.12 after the retailer was downgraded by Credit Suisse, which cited the possibility that higher interest rates could affect the affordability of new homes.
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Abbott Laboratories (ABT) - Get Report posted third-quarter earnings largely in-line with analysts' forecasts, but trimmed the upper end of its full-year profit outlook as international sales were hit by a stronger U.S. dollar. Shares declined 1.1%.
Lam Research Corp. (LRCX) - Get Report jumped 1.3% after the chip-equipment company forecast fiscal second-quarter adjusted earnings of $3.45 a share to $3.85 a share, above analysts' expectations of $3.29.
Tilray Inc. (TLRY) - Get Report was down 6.4% and Canopy Growth Corp. (CGC) - Get Report declined 4.6% after Canada became the first major economy to legalize recreational cannabis. Sales began early Wednesday.
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In U.S. economic data, housing starts fell 5.3% to a seasonally adjusted annual rate of 1.201 million units in September, the Commerce Department said.
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