Stocks Slip Following Wave Of Earnings

AMT Associates

US stocks have taken a slight tumble following a busy day for corporate earnings, which has featured a mixed bag of results and some hidden gems which have managed to hold their weight.

The Dow fell 0.22% just under 60 points as of market close, with the S&P500 falling the same percentage or 6.43 points. The NASDAQ saw the highest percentage loss dropping down 0.23% or 18.81 points. Tuesday we did see a recovery with the S&P500 and the NASDAQ both posting record closing highs with the Dow coming close to 1% of an all-time high record close. The rise driven by the stronger than expected results from both tech and consumer sectors.

Wednesday morning we saw the spotlight captured by Boeing, who after recent disasters stayed relatively strong. We are currently waiting to get the final reports from big names including Microsoft, Facebook, Tesla and PayPal which could go either way for when the markets open today.

Industrial earnings

Boeing said on Wednesday morning that it would be placing a halt on issuing new guidance as it missed consensus estimates for their quarterly earnings. The core EPS totaled $3.16 for the quarter, narrowly missing analysts estimates by 9 cents. However positives did come from Boeing who did manage to meet revenue estimations of $22.9 Billion. This has all come at a bad time for Boeing, who has been in the news a lot recently after two of the companies 737 Max-8 aircrafts went down causing multiple fatalities. Following these events governments around the globe banned the use of the aircrafts in their airspace until full and accurate investigations are completed into the disasters.

In a statement issued by Boeing they said that its previously issued guidance from analysts did not reflect the 737 Max disaster impacts. In January Boeing issued their guidance stating that they had anticipated revenues of around the $110 Billion mark for the full year of 2019, this tied with EPS of just under $20 USD. Shares of the company started uneasy in the early trading on Wednesday and did eventually end higher as investors noticed solid results in the company’s space, security and defense program.

Benjamin Holt – AMT Associates

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