The three major U.S. equity indexes closed higher on Tuesday, courtesy of a weaker dollar and an expected rise in U.S. crude inventories that sent oil prices lower early in the day. Add in overall bearishness from fund managers, and discounted equities looked like a good deal. The Dow Jones industrials closed up 2.4%, the S&P 500 rose 2.8%, and the Nasdaq jumped by 3.1%. All 11 S&P sectors closed lower. Industrials and communications services (up 3.6%) led, while utilities lagged (up 0.6%).
The monthly report on existing home sales from the National Association of Realtors is due early Wednesday, and the U.S. oil inventory report will be released later in the morning. In premarket trading Wednesday, all three indexes were slightly lower.
After markets closed Tuesday, Netflix beat analysts’ consensus profit estimate but missed the revenue projection. The big news was that the company lost less than half the 2 million subscribers it expected to lose in the quarter. The stock traded up by more than 6% in Wednesday’s premarket.
Omnicom reported better-than-expected earnings and revenue. Shares of the communications company traded up by about 7% in Wednesday’s premarket.
Before markets opened on Wednesday, semiconductor equipment maker ASML reported better than expected earnings per share (EPS) and revenue. Downside guidance for the third quarter and full-year revenue have sent shares lower by about 1.5% in premarket trading.
Abbott Labs beat earnings and revenue estimates and raised full-year EPS guidance. The stock traded down more than 2.5% in Wednesday’s premarket, likely due to continuing concern over infant formula sales.
Baker Hughes missed estimates on both the top and bottom lines. Shares were down more than 5% in premarket trading.
Here are our previews of five companies set to report quarterly results after markets close on Wednesday: Kinder Morgan, Las Vegas Sands, Steel Dynamics, Tesla and United Airlines. First thing Thursday morning, American Airlines, AT&T, D.R. Horton, Freeport-McMoRan and Philip Morris will share quarterly results.
Here is a look at four firms on deck to report results after markets close on Thursday or before they open on Friday.
American Express Co. (NYSE: AXP) has posted a 12-month share-price decrease of about 12%, all of it coming in the past five weeks. From the stock’s peak in mid-February, shares have dropped by nearly 28%. The Dow component reports results before Friday’s opening bell.
The company has just relaunched its Blue Cash rewards card, to go along with earlier changes to its reward programs for other versions of its cards. But until the airlines can untangle themselves and get more travelers in the air, Amex is forced to tinker around the edges to keep customers using the card and investors buying the stock.
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