Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell on Wednesday after the blue-chip index closed lower for four of the past five trading sessions.
- Boeing Co. (BA) - Get Report rose 3.4% after the aerospace giant topped third-quarter earnings forecasts and raised guidance for 2018.
- AT&T Inc. (T) - Get Report fell 5.9% after the telecom giant posted third-quarter earnings that missed analysts' estimates.
Wall Street Overview
Stocks fell on Wednesday, Oct. 24, with earnings from aerospace giant Boeing Co. (BA) - Get Report failing to lift the Dow Jones Industrial Average amid an environment for investors that remains sensitive to a slowing world economy and rising volatility.
The Dow declined 605 points, or 2.4%, to 24,586, the S&P 500 fell 3.08%, and the Nasdaq slumped 4.43% as semiconductors and telecom stocks were the leading laggards. Stocks finished in the red on Tuesday, Oct. 23, but came off sharp lows suffered earlier in the session. The blame was placed mostly on disappointing earnings, slowing growth in China and worries over trade.
"It's hard to get one's arms around all of this selling and wonder at some point when it will be over. Each dip has been a trap door, as the sellers unload stocks into a torrent of selling. There is just no interest right now in owning equities," said Robert Lang, a columnist for TheStreet's Real Money premium site for active traders and co-manager of our Trifecta Stocks model portfolio."
"While some may believe today's selling was orderly, let's not forget the VIX climbed more than 20% today and volume levels swelled. Further, new lows swamped new highs, a condition that has been nagging the markets since September. Earnings have not been all that supportive of lifting the markets, look at Boeing today. When the markets are in distribution it is time to step back, wait for the selling to finish and then review the landscape. We are not to that point yet. Cash is a good asset to own here," Lang concluded.
Boeing Co. (BA) - Get Report earned $3.58 a share on an adjusted basis in the third quarter, beating estimates of $3.47. Revenue of $25.15 billion topped forecasts of $23.9 billion. The third-quarter revenue growth was driven by higher defense volume and services growth, Boeing said.
The aerospace giant also raised its 2018 forecast for earnings and revenue. Boeing said it expects revenue in a range of $98 billion and $100 billion, compared to Wall Street's forecast of $98.48 billion. The company anticipates full-year adjusted of $14.90 and $15.10 a share, up from its prior forecast of $14.30 and $14.50 a share. The stock rose 1.35%.
AT&T Inc. (T) - Get Report posted third-quarter adjusted earnings of 90 cents a share, missing estimates of 94 cents. Revenue in the quarter was $45.7 billion vs. expectations of $45.4 billion. The stock declined 8.09%.
AT&T said it had 38.8 million video subscribers at the end of the quarter, a figure that was roughly flat from the same period last year, while its North American wireless customer base grew 10.1% to 167.6 million.
United Parcel Service Inc. (UPS) - Get Report posted third-quarter adjusted profit of $1.82 a share, meeting analysts' estimates. Revenue of $17.44 billion came in below forecasts. The shipping giant said it expects fiscal 2018 adjusted earnings of $7.03 to $7.37 a share. UPS fell 5.54%.
Texas Instruments said it sees revenue for the three months ended in December in the range of $3.6 billion to $3.9 billion, missing the Wall Street consensus of around $4 billion, and earnings of between $1.14 and $1.34 a share, which also were shy of the consensus forecast. The outlook followed third-quarter earnings that showed modest revenue growth of 3.4% to $4.26 billion but missed analysts' forecasts.
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Earnings reports are expected after the closing bell Wednesday from Microsoft Corp. (MSFT) - Get Report , Advanced Micro Devices Inc. (AMD) - Get Report , Ford Motor Co. (F) - Get Report and Tesla Inc. (TSLA) - Get Report .
Tesla fell 1.9% ahead of its earnings report and after the stock soared 12.7% during the previous session following a bullish call from Citron Research.
- Why I'm Shorting Tesla Stock Heading Into Earnings: Stephen 'Sarge' Guilfoyle
- Tesla Reports Earnings on Wednesday: 7 Important Things to Watch
TheStreet will be live blogging Tesla's earnings after the closing bell on Wednesday. Please check our home page then for more details.
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