Posted on 07/26/2018 6:56:02 AM PDT by Red Badger
Here Are Three Hot Things to Know About Stocks Right Now
The Dow Jones Industrial Average rose early Thursday but the Nasdaq fell sharply after Facebook Inc. (FB) tumbled. Facebook dropped 18.3% after a revenue miss and after the social media giant pointed to slower growth rates. Advanced Micro Devices Inc. (AMD) rose 6.9% after the chipmaker swung to a profit in the second quarter and beat analysts' estimates.
Wall Street Overview
Stocks were mixed on Thursday, July 26, as investors reacted with caution to a rough agreement between the European Union and the United States to move toward the elimination of tariff barriers and as shares of Facebook Inc. (FB) took a beating after the company warned of slower growth.
Donald Trump called talks in Washington with European Commission President Jean-Claude Juncker a "breakthrough ... that nobody thought possible" after the pair agreed to work toward a zero-tariff trade relationship and reform the World Trade Organization.
The Dow Jones Industrial Average rose 147 points, or 0.58%, 25,561, the S&P 500 fell 0.28% and the Nasdaq tumbled 1.11% as Facebook plunged more than 18%.
Facebook's Plunge Spells More Pressure to Monetize Messenger and WhatsApp
Facebook, the social media giant, reported revenue that missed analysts' expectations for the first time since 2015, and pointed to slower growth.
Facebook Tanks on Revenue Miss, Though EPS Beats Estimates Ripple Effects of Facebook Slump Already Spreading
Facebook Chief Financial Officer Dave Wehner said he expects the company's annual revenue growth to decelerate at a high-single digit clip sequentially in both the third and fourth quarters. He also said efforts to grow and promote "certain engaging experiences like Stories that currently have lower levels of monetization" would have an impact.
Wehner also indicated that operating margins would trend toward the mid-30s on a percentage basis over the next few years.
Facebook is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells FB? Learn more now.
McDonald's Corp. (MCD) fell 0.7% after it reported adjusted earnings of $1.99 a share in the second quarter, beating estimates of $1.92. Revenue of $5.35 billion fell from $6.05 billion a year earlier. Analysts forecast revenue of $5.32 billion.
The hamburger chain said global same-store sales rose 4%, with U.S. growth of 2.6%. Analysts expected U.S. sales to rise 3%.
Comcast Corp. (CMCSA) posted stronger-than-expected second-quarter earnings Thursday even as America's biggest cable company lost tens of thousands of subscribers to its video service amid the ongoing "cord cutting" that continues to fragment the media industry. Shares rose 1.3%.
Under Armour Inc. (UAA) posted a second-quarter adjusted loss of 8 cents a share, matching estimates. Revenue of $1.17 billion topped analysts' forecasts of $1.15 billion. The stock rose 3.6%.
Raytheon Co. (RTN) earned $2.78 a share in the second quarter, topping forecasts of $2.34. Sales in the quarter of $6.6 billion edged out estimates. The stock, however, fell 3.7%.
Earnings are also expected Thursday after the closing bell from Amazon.com Inc. (AMZN) , Intel Corp. (INTC) , and Starbucks Corp. (SBUX) .
Amazon Reports Earnings on Thursday: 5 Key Things to Watch
Amazon, Comcast and Raytheon are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.
Advanced Micro Devices Inc. (AMD) swung to a profit in the second quarter and beat estimates, lifting shares 6.6% on Thursday.
AMD Tops Second-Quarter Estimates, Stock Jumps
Qualcomm Inc. (QCOM) topped fiscal third-quarter earnings expectations, and the chipmaker said it would walk away from its purchase of NXP Semiconductors NV (NXPI) . Qualcomm shares rose 5.3%.
Qualcomm Beats Earnings Expectations, Ends NXP Bid
PayPal Holdings Inc. (PYPL) beat earnings and revenue estimates in its second quarter, but the payments giant's revenue outlook for the third quarter fell slightly short of analysts' expectations. Shares fell 3.4%.
PayPal Shares Fall as Revenue Guidance Misses Expectations
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United Natural Foods Inc. UNFI said Thursday it would buy SuperValu Inc. SVU for $32.50 a share in cash, or about $2.9 billion. Supervalu shares xx
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