Stocks Near Highs Despite Disappointing Earnings

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks near highs despite disappointing earnings. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

US futures point to slightly lower open

U.S. stock index futures were slightly lower Wednesday morning.

The S&P 500 (SPY) added +0.28% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Communication services (XLC), consumer staples (XLP), energy (XLE), financials (XLF), healthcare (XLV), materials (XLB), real estate (XLRE), technology (XLK) and utilities (XLU) all had minor gains of less than 1%. Consumer discretionary (XLY) was the only sector with a small loss of less than 1%.

The Dow Jones index ended in the green +45 points (+0.17%) to close at 26,833. The Nasdaq advanced +15 points (+0.19%) to settle at 8,119.

Stocks Near Highs Despite Disappointing Earnings

Stocks landed in positive territory on Wednesday despite disappointing earnings from the likes of Caterpillar and Boeing.

Caterpillar said it earned $2.66 per share in the third quarter, versus the Refinitiv consensus estimate of $2.88 per share. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion. The heavy machinery manufacturer lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, lower than the expected $11.70. The stock closed 1.2% higher, however, after falling more than 6% in the premarket.

Meanwhile, Boeing shares climbed 1% after the airplane maker said it will stick to its timeline for the return of the 737 Max. That was enough to offset earnings that badly missed analyst expectations. The company reported a profit of $1.45 per share. Analysts polled by Refinitiv expected a profit of $2.09.

Despite the weak results, the third-quarter earnings season has largely topped analyst expectations. Of the S&P 500 companies that have reported through Wednesday morning, 81% have posted better-than-expected results, according to FactSet.

To be sure, companies are beating watered-down estimates. S&P 500 earnings were expected to have fallen by more than 4% in the previous quarter entering the season, according to FactSet.

Key Takeaways…

I took the following CNBC screenshots today regarding Caterpillar revenues, weaker guidance, Caterpillar in 2019, reduced growth and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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10/23/19

S&P 500 Sector Graph

Stocks Near Highs Despite Disappointing Earnings

S&P 500 (SPY)

Stocks Near Highs Despite Disappointing Earnings

Communication Services (XLC)

Stocks Near Highs Despite Disappointing Earnings

Consumer Discretionary (XLY)

Stocks Near Highs Despite Disappointing Earnings

Consumer Staples (XLP)

Stocks Near Highs Despite Disappointing Earnings

Energy (XLE)

Stocks Near Highs Despite Disappointing Earnings

Financials (XLF)

Stocks Near Highs Despite Disappointing Earnings

Real Estate (XLRE)

Stocks Near Highs Despite Disappointing Earnings

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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