Wall Street closed sharply higher on Tuesday buoyed by strong first-quarter 2019 earnings results. The S&P 500 and Nasdaq Composite reached new highs while the Dow remained at a striking distance from an all-time peak. Moreover, crude oil prices moved up further after reaching a 6-month high on Apr 22.
The Dow Jones Industrial Average (DJI) closed at 26,656.39, gaining 0.6% or 145.34 points. The S&P 500 Index (INX) rose 0.9% to close at 2,933.68. The Nasdaq Composite Index (IXIC) closed at 8,120.82, increasing 1.3% or 105.56 points. A total of 6.75 billion shares were traded on Tuesday, higher than the last 20-session average of 6.64 billion shares. Advancers outnumbered decliners on the NYSE by 2.91-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.82-to-1 ratio. The CBOE VIX decreased 1.1% to close at 12.28.
How Did the Benchmarks Perform?
The Dow ended in positive territory with 22 stocks of the 30-stock index finishing in the green while eight ended in the red. Theblue-chip index is just 1.1% away from its all-time high recorded on Oct 3, 2018. The tech-laden Nasdaq Composite also finished in the green exceeding its previous all-time high recorded on Aug 29, 2018.
The S&P 500 closed in the green exceeding its previous all-time high recorded on Sep 20, 2018. The Health Care Select Sector SPDR (XLV) and Communication ServicesSelect Sector SPDR (XLC) surged 1.6% and 1.3%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in the green while one finished in the red.
Robust First-Quarter Earnings Results
On Apr 23, several large corporates released impressive earnings results for the first quarter of 2019.
Twitter Inc. TWTR reported first-quarter 2019 non-GAAP earnings of $0.37 per share.Revenues increased 18% year over year to $787 million.The Zacks Consensus Estimate for earnings and revenues were pegged at $0.15 and $775 million, respectively. Average monetizable daily active users were 134 million in the reported quarter compared with 120 million in the year-ago quarter and 126 million in the previous quarter. (Read More)
The Coca-Cola Co.’s KO first-quarter 2019 adjusted earnings of $0.48 per share beat the Zacks Consensus Estimate of $0.46.Revenues of $8,020 million surpassed the Zacks Consensus Estimate of $7,890 million. (Read More)
Lockheed Martin Corp. LMTreported first-quarter 2019 earnings of $5.99 per share, surpassing the Zacks Consensus Estimate of $4.29. Net sales amounted to $14.34 billion, which outshined the Zacks Consensus Estimate of $12.65 billion. (Read More)
Consequently, shares of Twitter, The Coca-Cola and Lockheed Martin surged 15.6%, 1.7% and 5.7%, respectively. All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crude Oil Prices Northbound
On Apr 22, the U.S. government said that the State Department will withdraw the waivers granted to eight countries to import crude oil or condensate from Iran effective May 2.Following the news, boththe U.S. benchmark West Texas Intermediate (WTI) crude and the global benchmark, Brent Crude jumped to a 6-month high. On Apr 23, WTI crude futures for June delivery surged 1.1% or $0.75 to close at $66.30. Brent Crude increased 0.6% or $0.47 to end at $74.51.
The Department of Commerce reported that new home sales increased 4.5% in March to a seasonally adjusted annual rate of 692,000, exceeding the consensus estimate of 645,000. February’s figure revised downward to 662,000 from 667,000 reported earlier.
Stocks That Made Headline
Canadian Pacific's Shares Down on Q1 Earnings Miss
Canadian Pacific Railway Ltd. CP reported lower-than-expected earnings but better-than-expected revenues in the first quarter of 2019. (Read More)
Hawaiian Holdings Q1 Earnings Top, Revenues Miss Mark
Hawaiian Holdings Inc.’s HA first-quarter 2019 earnings (excluding 8 cents from non-recurring items) of 67 cents outpaced the Zacks Consensus Estimate by a penny. (Read More)
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