Earnings disappointments from Advanced Micro Devices Inc. (AMD) and Chipotle Mexican Grill Inc. (CMG) sent stock futures lower on Wednesday, Oct. 25, though the Dow Jones Industrial Average still held around record levels.
Dow futures were down 0.05%, S&P 500 futures fell 0.1%, and Nasdaq futures declined 0.14%.
Powerhouse performances from Caterpillar Inc. (CAT) and 3M Co. (MMM) inspired a Dow Jones rally on Tuesday, Oct. 24, leading the blue-chip index to its 54th record close of the year. The Dow gained 168 points in its best one-day points gain since Sept. 11. The index hasn't scored as many closes in one year since 1995. The S&P 500 and Nasdaq were just short of their own closing records.
Advanced Micro Devices declined around 9% in premarket trading after guiding for a decline in fourth-quarter revenue. The chipmaker said it expects revenue to decline about 15% sequentially in the fourth quarter, plus or minus 3%.
For the third quarter, AMD swung to a profit of 7 cents a share from a loss of 50 cents in the same quarter a year earlier. AMD reported adjusted earnings of 10 cents a share on revenue of $1.64 billion. Analysts were expecting adjusted earnings of 8 cents on revenue of $1.51 million.
Chipotle Mexican Grill slumped 11% in premarket trading after a weak third quarter, partly tied to Hurricane Harvey and Irma that disrupted operations and traffic in late August and early September. The fast casual chain reported third-quarter earnings that missed Wall Street estimates by nearly $1.
Chipotle posted earnings of 69 cents a share, while analysts expected $1.64. Chipotle said earnings reflect an impact of 64 cents a share from being systematically hacked in May and about losses of 13 cents from hurricane disruption. Third-quarter revenue increased 8.8% from a year earlier to $1.13 billion. Restaurant sales increased 1%.
AT&T Inc. (T) reported third-quarter revenue that came in below forecasts as customers continued to cut the cord. Chief Financial Officer John Stephens told investors on a conference call Tuesday that pressures on AT&T's traditional pay-TV business would lessen in the fourth quarter. AT&T said it lost 89,000 video subscribers in the third quarter.
AT&T earned an adjusted 74 cents a share in the quarter, in line with analysts' forecasts. But sales of $39.7 billion were below expectations of $40.1 billion.
"This was an unprecedented quarter when it comes to natural disasters," Stephens said. The telecom said that damage from hurricanes in the U.S. and earthquakes in Mexico and higher interest expense for pre-funding debt for the purchase of Time Warner Inc. (TWX) lowered earnings.
Visa Inc. (V) increased 1% in premarket trading after exceeding profit and sales estimates over its recent quarter. The credit card company reported an 11% increase in profit and earnings of 90 cents in its fiscal fourth quarter, topping estimates by 5 cents. Revenue of $4.86 billion also came in higher than forecasts. Payments volume rose 10%.
Coca-Cola Co. (KO) reported a better-than-expected third quarter on its top-line and bottom-line. The beverage giant posted adjusted profit of 50 cents a share in the third quarter, beating Wall Street estimates of 49 cents. Revenue was $9.08 billion; analysts expected $8.73 billion. Volume grew 1% in its juice, dairy, tea and beverages segment, while soda volume was flat.
Walgreen Boots Alliance Inc. (WBA) reported fourth quarter earnings of $1.31 per share, beating Wall Street estimates of $1.21. It posted a 5.3% increase in sales, totaling $30.1 billion in the same period, also exceeding Wall Street's projection of $29.9 billion. The $1.31 per share earnings figure accounts for Walgreen's $4.3 billion acquisition of nearly 2,000 Rite Aid stores -- about half of the chain -- and three distribution centers. The deal cleared regulatory hurdles in September, Walgreen said, wrapping up a merger that has been in the works for over two years.
Boeing Co. (BA) beat third-quarter earnings estimates and raised its full-year guidance as commercial airplane earnings rose 15%. Adjusted earnings of $2.72 a share beat estimates of $2.65. Revenue rose 2% to $24.31 billion. Boeing boosted its full-year earnings per share guidance to between $11.20 and $11.40, citing strong deliveries, services and delivery mix and "overall solid execution." Previous guidance was between $11.10 and $11.30 a share. Boeing boosted "core" or non-GAAP guidance to between $9.90 and $10.19 a share from $9.80 to $10 a share.
Durable goods orders rose at double the pace expected in September. Orders for long-lasting goods in the U.S. increased by 2.2%, according to the Census Bureau, far better than an expected 1% rise. Excluding transportation, orders climbed by 0.7%. Core capital goods orders rose 1.3%. Orders increased 1.7% in August.
Also on the economic calendar on Wednesday: new home sales for September at 10 a.m. ET.
Crude oil prices were slightly lower ahead of a weekly read on U.S. inventories this morning. The Energy Information Administration will release its weekly data as normal at 10:30 a.m. Wednesday. Stockpiles declined by 5.7 million barrels in the previous week as refinery operations in the Texas and Louisiana region worked through excess inventories following Hurricane Harvey.
West Texas Intermediate crude was down 0.3% to $52.32 a barrel on Wednesday.
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