The three major U.S. equity indexes closed lower Monday, as equities tumbled following the report on home building release. The Dow Jones industrials closed down 0.7%, while the S&P 500 and the Nasdaq arch dipped by 0.8%. Eight of 11 S&P sectors closed lower. Health care (down 2.1%) and utilities (down 1.4%) were the big losers, while energy (up 2.3%) got the biggest boost.
The Census Bureau’s report on housing starts is due Tuesday morning and is expected to show a month-over-month dip of about 50,000 new homes being built. In premarket action Tuesday morning, all three indexes traded up by less than 1%.
After markets closed Monday, IBM reported quarterly results that beat both profit and revenue estimates. While Big Blue said its outlook for the year’s second half remains unchanged, investors were not impressed. Shares traded down more than 7% Tuesday morning.
Before markets opened on Tuesday, Johnson & Johnson reported better-than-expected earnings and revenue while slightly trimming full fiscal year guidance. Shares were up about 1% or so early Tuesday.
Lockheed Martin did not meet consensus expectations on either revenue or earnings. The defense contractor also reduced guidance, sending the shares down more than 1%.
Halliburton beat consensus estimates on both the top and bottom lines. The stock traded up almost 2% early Tuesday.
Truist Financial reported that it beat top-line and bottom-line estimates. Shares traded up less than 1%.
Our preview of companies reporting results late Tuesday or early Wednesday included Abbott Labs, ASML, Baker Hughes, Netflix and Omnicom.
Here is a look at five firms on deck to report results after markets close on Wednesday.
Energy infrastructure company Kinder Morgan Inc. (NYSE: KMI) has added around 2% to its share price over the past 12 months. Shares plunged in the first half of June, though, dropping by 20%. The Federal Reserve’s 0.75-point interest rate hike, combined with the explosion of the Freeport LNG terminal, sent natural gas prices tumbling.
While Kinder Morgan and the other big pipeline operators are largely immune to commodity price risk, borrowing costs directly affect their ability to pay their nice dividends. And dividends are what Kinder Morgan investors want to see.
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