U.S. stock markets closed lower on Thursday as the postelection rally halted on profit booking, Market participants were concerned regarding President-elect Donald Trump’s economic policies such as imposition of tariffs, reduction of corporate tax and de-regulation and policies toward big-ticket M&A. Moreover, earnings results were mixed the previous day. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) dropped 0.9% or 382.15 points to close at 43,910.98. Notably, 20 components of the 30-stock index ended in negative territory while 9 in positive zone and one remained unchanged. The tech-heavy Nasdaq Composite finished at a record-high of 19,281.40, sliding 0.1% due to weak performance by corporate giants. The tech-laden index terminated a five-day winning streak.
The S&P 500 fell 0.3% to finish at 5,983.99, terminating a five-day winning run. Eight out of 11 broad sectors of the broad-market index ended in negative territory while three in positive zone.
The Consumer Discretionary Select Sector SPDR (XLY), the Health Care Select Sector SPDR (XLV), the Real Estate Select Sector SPDR (XLRE), the Materials Select Sector SPDR (XLB) and the Utilities Select Sector SPDR (XLU) declined 1.3%, 1.4%, 1.3%, 1.7% and 1.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 1.7% to 14.71. A total of 15.29 billion shares were traded on Tuesday, higher than the last 20-session average of 13.17 billion. Decliners outnumbered advancers on the NYSE by a 3.48-to-1 ratio. On Nasdaq, a 2.27-to-1 ratio favored declining issues.
Third-Quarter Earnings Results
We are in the last leg of the third-quarter 2024 earnings season. So far earnings results have been better than expected. So far, 455 S&P 500 companies have reported their quarterly financial numbers. Total earnings of these companies are up 7.1% year over year on 5.5% higher revenues, with 73.5% beating earnings per share (EPS) estimates and 61.5% beating revenue estimates.
Live Nation Entertainment Inc.’s (LYV – Free Report) third-quarter 2024 earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines declined from the prior-year quarter’s level.
During the third quarter, the company reported adjusted earnings per share of $1.66, surpassing the Zacks Consensus Estimate of $1.58 by 5.1%. Revenues amounted to $7.7 billion, missing the consensus mark of $7.8 billion.
Shopify Inc. (SHOP – Free Report) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. Shopify posted revenues of $2.16 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.59%. This compares to year-ago revenues of $1.71 billion.
Tyson Foods Inc. (TSN – Free Report) posted splendid fourth-quarter fiscal 2024 results as the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. The company posted adjusted earnings of $0.92 per share, which crushed the Zacks Consensus Estimate of $0.64. Total sales of $13,565 million surpassed the Zacks Consensus Estimate of $13,326 million.
Consequently, shares of Live Nation Entertainment, Shopify and Tyson Foods advanced 4.7%, 21% and 6.6%, respectively. Shopify currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
