In early trading Tuesday, the Dow was down 0.32%, the S&P 500 down 0.30% and the Nasdaq down 0.11%. Bloomberg reported shortly after the opening bell that “dozens” of large-cap stocks dropped sharply before recovering. The price action could be attributable to past computer glitches that led to temporary price swings.
Before U.S. markets opened on Tuesday, General Electric beat the consensus profit estimate but missed on revenue. The company issued downside guidance for 2023, but the spin-off of the health care business and strong demand for aircraft engines sent shares up by about 0.2% in early trading.
3M missed the consensus earnings per share (EPS) estimate but beat on revenue. The Dow component issued downside revenue guidance for the 2023 fiscal year. Shares traded down about 5.5%.
D.R. Horton beat expectations on both the top and bottom lines. The company said it would release guidance on its conference call later in the morning. The stock traded up about 1.5%.
Halliburton beat the consensus EPS estimate but missed on revenue and announced a 33% quarterly per-share dividend increase to $0.16. Shares traded down about 2.4% Tuesday morning.
Johnson & Johnson also topped the consensus profit estimate but fell short on revenue. Demand for Tylenol was very strong in the fourth quarter, according to Chief Financial Officer Joseph Wolk. We are not surprised. The shares traded down by about 1%.
Lockheed Martin hammered estimates on both the top and bottom lines and issued guidance for fiscal 2023 that was in line with analysts’ consensus estimates. Shares traded up about 0.5% Tuesday morning.
Raytheon missed the consensus revenue estimate and barely surpassed the profit estimate. The defense contractor said it would realign its business into three segments (Collins Aerospace, Pratt & Whitney and Raytheon) and reorganize in the second half of this year. Investors are expecting cost-cutting, obviously, and pushed the stock up by about 0.8% in late morning trading.
Verizon met the consensus EPS estimate and beat on revenue. The telecom giant issued downside guidance, but a late morning reversal has sent shares higher, up 1.6% on the day.
Look for quarterly results from ASML, Microsoft and Texas Instruments late Tuesday or early Wednesday. AT&T, Boeing, Freeport-McMoRan and NextEra Energy are also expected to report earnings before markets open on Wednesday. Later that day, CSX, IBM, Lam Research and Tesla step into the earnings spotlight.
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