Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell Thursday as prospects dimmed for a near-term resolution to U.S.-China trade talks following comments from the U.S. Commerce Secretary.
- Ford Motor Co. (F) rose 3.12% even after the automaker's adjusted fourth-quarter earnings missed estimates and it reported a loss of $116 million in the period.
- Bristol-Myers Squibb Co. (BMY) beat fourth-quarter earnings expectations but pulled an application to the U.S. Food and Drug Administration for a blockbuster cancer drug combination in order to collect more data. The stock was down 1.9%.
Wall Street Overview
Stocks ended mixed Thursday, Jan. 24, getting a boost in part from stronger-than-expected earnings even as global investors remained in defensive positions amid ongoing concerns over the strength of the world economy and the fate of U.S.-China trade talks.
The Dow Jones Industrial Average fell 22 points, or 0.09%, to 24,553, the S&P 500 rose 0.14%, and the Nasdaq rose 0.68%.
Commerce Secretary Wilbur Ross, however, said Thursday in a CNBC interview that the U.S. was "miles and miles" from a trade deal with China.
"Frankly, that shouldn't be too surprising," Ross said. The globe's two largest economies have "lots and lots of issues," Ross continued, and the Trump administration will need to create "structural reforms" and "penalties" in order to resume trade relations with Beijing.
"We would like to make a deal but it has to be a deal that will work for both parties," he said. "We're miles and miles from getting a resolution."
The comments appeared to conflict with remarks from President Trump Wednesday. Trump told reporters in Washington on Wednesday that "I like where we are right now," in terms of trade talks, which are set to resume next week, adding that China "very much wants to make a deal. We'll see what happens. But we're doing very well in our negotiations with China."
Ford Motor Co. (F) rose 3.12% even after it reported mixed financial results amid an $11 billion restructuring that will result in decreased production overseas.
The automaker reported adjusted earnings of 30 cents a share on automotive segment revenue of $38.7 billion. Analysts expected a profit of 32 cents a share on revenue of $38.66 billion. Total revenue in the quarter was $41.8 billion vs. $41.3 billion a year earlier.
Operating income on an adjusted basis in the fourth quarter was $1.5 billion. The company posted a loss of $116 million in the period, reversing a year-earlier profit of $2.5 billion.
Ford said its profit margin in North America was 7.6% on pretax profit of $2 billion. However, the company's overall profit margin was 3.5% in the quarter due to a $780 million loss reported in Europe, China and South America.
Bristol-Myers Squibb Co. (BMY) posted stronger-than-expected fourth-quarter earnings but pulled an application to the U.S. Food and Drug Administration for a blockbuster cancer drug combination in order to collect more data.
Adjusted earnings for the quarter were 94 cents a share, firmly ahead of estimates of 85 cents and up 38% from the same period last year. Revenue rose 10% to $5.973 billion, just ahead of Wall Street forecasts.
The stock was down 1.9%.
American Airlines Group Inc. (AAL) posted better-than-expected fourth-quarter earnings and guided investors to a stronger performance in 2019 that it said would top its key competitors.
American said adjusted earnings for the three months ended in December were $1.04 a share, 3 cents ahead of estimates and up 11.8% from the same period last year. Revenue was $10.94 billion on a non-GAAP basis, matching forecasts.
American said it sees 2019 earnings in the range of $5.50 to $7.50 a share, well ahead of the Refinitiv consensus of $5.90, adding that "total revenue per available seat mile (will) grow faster than our network competitors."
The stock rose 6.35%.
Southwest Airlines Co. (LUV) posted fourth-quarter adjusted earnings and revenue that beat analysts' expectations. Load factor for the quarter declined to 83.5%, below forecasts. The stock rose 6.27%.
Chipmaker Texas Instruments Inc. (TXN) topped earnings estimates for the fourth quarter but issued slightly lower-than-expected guidance.
The stock was up 6.9% on Thursday.
Earnings in the quarter were $1.27 a share, higher than Wall Street estimates of $1.23. Revenue was $3.72 billion, missing estimates of $3.74 billion.
Texas Instruments guided for first-quarter revenue of between $3.34 billion to $3.62 billion for a midpoint of $3.48 billion, below Wall Street's expected guidance of $3.59 billion. The company guided for earnings of between $1.03 and $1.21 a share vs. Wall Street's estimate of $1.20.
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Fellow chipmaker Xilinx Inc. (XLNX) soared 18.44% Thursday after it posted better-than-expected revenue in its fiscal third quarter and issued guidance above analysts' forecasts.