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Markets News (October) 24th, 2023: Treasury Yields Waver; Verizon, 3M, and Coca-Cola Earnings Drive Dow Up 200 Points


Update (Oct. 25, 2023): For today's live markets coverage, see here.

Stocks gained Tuesday as investors cheered a slew of earnings beats from the likes of Verizon and General Electric, and prepared for reports from Microsoft, Google-parent Alphabet, and Visa after the bell.

The Nasdaq rose 0.9%, while the S&P 500 climbed 0.7% to snap a five-day losing streak. The Dow Jones Industrial Average gained 0.6%. Long-dated Treasurys gained, sending yields lower, while shorter-duration notes slipped.

Shares of Coca-Cola (KO), General Electric (GE), and Verizon (VZ) rose after each beat third-quarter earnings expectations.

Bitcoin jumped above $35,000 for the first time since May 2022 after a D.C. court finalized an earlier ruling in favor of crypto asset manager Grayscale in its fight with the Securities and Exchange Commission (SEC). The court's decision, issued Monday, forces the SEC to reconsider Grayscale's application to convert its Grayscale Bitcoin Trust (GBTC) to an exchange-traded fund.

Stocks ended yesterday mixed, with the Nasdaq closing higher and the S&P 500 and Dow finishing lower after rallying in the morning and slipping throughout the afternoon.

S&P 500 Gains and Losses Today

October 24, 2023 05:19 PM EDT

Here are the S&P 500 stocks that gained and lost the most today, and the stories behind the market movers.

Investopedia

Verizon, 3M, Coca-Cola Earnings Propel Dow to 200-Point Gain

October 24, 2023 04:23 PM EDT

The Dow Jones Industrial Average broke its four-session losing streak, rising about 0.6%, or 205 points, on the back of strong earnings from several components.

Verizon (VZ) surged 9.3% to lead the index higher, with the telecommunications provider reporting better-than-expected third-quarter earnings after it was able to offset losses in cellular subscribers with additions in broadband services and wireless business customers. 

Shares of 3M (MMM) jumped 5.3% after it reported earnings that beat analyst estimates despite sales declines across all its divisions, crediting its operational execution, restructuring actions, and proactive spending discipline. 

Shares of Coca-Cola (KO) gained 2.9% on its third-quarter report. Consumers accepted the drink maker’s price hikes, boosting net income by 7% over the same quarter last year. Coca-Cola raised its full-year earnings growth forecast to a range of 7% to 8%, up from its prior guidance of 5% to 6%.

Dow Inc. (DOW) shares moved higher by 2.1% after its third-quarter earnings beat analyst expectations, despite falling from the same quarter last year on lower sales volume.

Visa (V) shares rose 1.4% ahead of its earnings report after markets closed. Microsoft (MSFT), also reporting after the bell, gained 0.4%.

Walgreens Boots Alliance (WBA) shares dropped 2.7%, breaking a two-day win streak for the struggling pharmacy chain that this week welcomed its new CEO, healthcare industry veteran Tim Wentworth.

Chevron (CVX) shares declined 2.5%, falling again after its agreement to purchase Hess, as WTI crude futures fell about 2%.

-Terry Lane

GM Pulls Full-Year Guidance as UAW Strike Expands, Hitting Profits

October 24, 2023 03:40 PM EDT

General Motors Co. (GM) pulled its full-year guidance in its third-quarter earnings report released Tuesday amid uncertainty surrounding the growing strike by the United Auto Workers (UAW) union.

"Because of this uncertainty we've chosen to withdraw our 2023 full-year guidance metrics, even though our strong underlying business fundamentals were pushing us towards the upper half of the range prior to any strike impact,” GM Chief Financial Officer (CFO) Paul Jacobson said in Tuesday's earnings call. GM had previously projected adjusted earnings before interest and taxes (EBIT) for the full year of between $12 billion and $14 billion.

The automaker posted a third-quarter profit of $3.06 billion, a 7% from a year ago partly attributable to the UAW strike's estimated $200 million impact in the last two weeks of the quarter.

Shortly after earnings were released on Tuesday morning, the UAW expanded its stand-up strike to include 5,000 workers at GM's largest plant, in Arlington, Texas.

General Motors shares were down nearly 3% shortly before the end of the trading session.

-Naomi Buchanan

Coalition of States Sues Meta Over Addictive App Features; Shares Slump

October 24, 2023 02:53 PM EDT

A group of 33 states filed a lawsuit against Facebook-parent Meta Platforms (META) Tuesday alleging that it designed social media features to ensnare young users and get them to spend more time on its platforms, all while saying those features were not designed to be addictive. 

The lawsuit, filed in U.S. District Court for the Northern District of California, also accuses Meta of violating the Children's Online Privacy Protection Act (COPPA) by knowingly collecting personal information from users under the age of 13 without parental consent. 

The suit comes one year after the European Data Protection Board fined Meta subsidiary Instagram 405 million euros, then the agency’s largest fine under 2018’s General Data Protection Regulation, for violating children’s data privacy laws. 

Meta shares, up more than 1% this morning, sank Tuesday afternoon to trade about 0.5% lower.

Oil Prices Fall on Fears of Eurozone Downturn, Demand Concerns

October 24, 2023 01:54 PM EDT

Oil prices fell Tuesday as investors digested weak economic data out of Europe, raising fears of an economic downturn in one of the world's largest markets.

S&P Global's HCOB Eurozone flash Purchasing Managers Index output index, a preliminary measure of economic activity, fell to 46.5, nearly a 3-year low, in October from 47.2 in September. Private sector output fell at its fastest rate in a decade—excluding pandemic-related decreases—and employers cut headcount for the first time since Covid lockdowns in 2021.

“In the Eurozone, things are moving from bad to worse. Manufacturing has been in a slump for sixteen months, services for three, and both PMI headline indices just took another hit," said Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank in a statement.

"We wouldn’t be caught off guard to see a mild recession in the Eurozone in the second half of this year with two back to back quarters of negative growth," he added.

Meanwhile, the International Energy Administration said that the transition to clean energy had gained enough momentum for fossil fuel demand to potentially peak before the end of the decade.

Brent crude futures, the European oil benchmark, fell almost 3% to about $87 a barrel on the Eurozone's bleak outlook. West Texas Intermediate, the U.S. benchmark, fell about 2% less than $84 a barrel.

Logitech Shares Spike After Reporting Profit Jumped as the PC Accessory Maker Cut Costs

October 24, 2023 01:27 PM EDT

Logitech International (LOGI) shares spiked after the PC equipment supplier reported profit soared and it raised its guidance on lower expenses.

The maker of keyboards and other computer peripherals posted second-quarter fiscal 2024 earnings per share (EPS) of $1.09, 30% higher than a year ago and almost double what analysts had expected. Sales dropped 8% to $1.06 billion but were still above forecasts.

Demand for computer accessories has waned since the COVID-19 boom when lockdowns forced people to work and attend school at home. However, CFO Chuck Boyton noted that Logitech’s “focus on cost discipline with a customer-first mindset is paying off, with share growth in key categories.”

Shares of Logitech were up over 10% in early trading on Tuesday to their highest level in a year and a half following the news. 

-Bill McColl

TradingView.

Midday Market Movers

October 24, 2023 12:13 PM EDT

Here are the stocks moving markets heading into the afternoon.

Verizon Communications (VZ): Shares soared more than 9% as the telecom provider reported profit and subscriber growth that beat forecasts and predicted it will gain more subscribers in the current quarter.

W.R. Berkley (WRB): Shares advanced 7% as the insurer's net investment income set a record and gross and net premiums written increased.

Alphabet Inc. (GOOGL): Shares gained almost 2% ahead of the tech giant's third-quarter earnings report after the bell.

HCA Healthcare (HCA): Shares tumbled more than 4% after the hospital and health care chain missed quarterly earnings estimates and narrowed its outlook as the company’s physician staffing joint venture with Valesco underperformed.

Corning (GLW): Shares sank almost 3% after the company warned of falling demand for its fiber optic glass cables. It also indicated current quarter core sales will be below estimates.

-Bill McColl

GE Raises Full-Year Guidance After Strong 3Q; Share Price Rises

October 24, 2023 11:25 AM EDT

General Electric (GE) reported third-quarter earnings that beat analysts' expectations and raised full-year guidance, sending the company's shares sharply higher in early trading.

The company said Tuesday that adjusted revenue rose 18% from a year earlier to $16.5 billion in the third quarter, while earnings per share came in at 82 cents, compared with a loss of 17 cents a share in the third quarter of 2022.

The better-than-expected performance was driven by the strength of GE Aerospace, where revenue increased 25% to $8.4 billion and profit rose 33%. The Renewable Energy and Power businesses, which are part of GE Vernova, showed revenue increases of 14% and 9%, respectively.

The company, which has been steadily raising its guidance this year, said it now expects full-year adjusted EPS of $2.55-$2.65, up from the $2.10-$2.30 range it projected in July. Free cash flow for the full year is now projected at $4.7 billion to $5.1 billion, up from the $4.1 billion-$4.6 billion forecast in July.

GE shares were up about 7% Tuesday morning. They have gained 86% in the last year after reaching their lowest level in over two decades in 2021.

-Nathan Reiff

3M Shares Jump on Cost Cuts, Earnings Beat

October 24, 2023 10:42 AM EDT

Shares of industrial conglomerate and Dow component 3M Co. (MMM) jumped more than 5% after it reported better-than-expected earnings on the back of restructuring and cost controls. 

3M reported sales of $8.3 billion, a 3.6% decline from the year-ago quarter. Stripping out the sale of products containing environmentally damaging per- and polyfluoroalkyl substances (PFAS), which the company has vowed to stop manufacturing and selling by 2025, revenue declined 3% to $8 billion. 

Operating margins, excluding one-time charges like a $4.2 billion settlement of a faulty earplugs lawsuit, grew 1.6 percentage points to 23.2%. That boosted adjusted earnings per share to $2.68 from $2.60 a year ago.

Verizon's Earnings Beat Driven By Home and Business Internet, Wireless Subscribers Fall

October 24, 2023 10:07 AM EDT

Verizon's (VZ) home and business wireless business boosted third-quarter earnings even as the telecom giant lost cellular subscribers.

Verizon earnings by the numbers:

  • Revenue: $33.34 billion vs. $33.48 billion expected, according to analyst estimates compiled by Visible Alpha.
  • Adjusted earnings per share: $1.22 vs. $1.18 expected

Verizon saw 434,000 net additions for its broadband service, up 15% from the same period last year. Consumer wireless business revenue grew 2.9% to $15.96 billion on the back of fixed wireless additions, even as both postpaid and retail wireless subscribers tapered.

Shares jumped more than 7% in early trading Tuesday as the bottom-line results topped analysts' expectations and the company raised its guidance for 2023 free cash flow by $1 billion, to $18 billion.

-Nathan Reiff

Stocks Making the Biggest Moves Premarket

October 24, 2023 09:27 AM EDT

RTX Corp. (RTX): Shares of the aeronautics and defense company jumped more than 9% after it reported better-than-expected third-quarter earnings and approved a $10 billion share buyback program. 

Coinbase Global Inc. (COIN): The cryptocurrency exchange’s shares surged more than 8% after the price of Bitcoin topped $35,000 on the finalization of a court order that will force the Securities and Exchange Commission to reconsider Grayscale’s rejected application to convert its Bitcoin Trust into an exchange-traded fund. 

General Electric Co. (GE): Shares of the industrial conglomerate rose more than 5% after its third-quarter earnings topped Wall Street’s estimates on booming demand for aircraft parts and services.

Spotify Technology S.A. (SPOT): Shares of the music streaming platform rose almost 5% after it reported that cost cuts helped it post a surprise profit in the third quarter, earning 0.33 euros per share against estimates of a 0.20 euro per share loss. 

Verizon Communications Inc. (VZ): Shares of the telecom giant rose more than 4% after it raised its full-year free cash flow guidance and reported a smaller-than-expected drop in quarterly earnings. 

Danaher Corp. (DHR): Shares fell more than 3% after the health sciences conglomerate beat Wall Street’s earnings estimates, but warned it expects fourth-quarter and full-year core business sales to fall year-over-year.

Coca-Cola Rises Premarket on Earnings Beat

October 24, 2023 09:04 AM EDT

Shares of Coca-Cola Co. (KO) rose nearly 2% in premarket trading after it topped analysts’ sales and earnings expectations on slightly higher volumes and price hikes. 

Coca-Cola earnings by the numbers:

  • Net operating revenue: $11.91 billion vs. $11.57 billion expected, according to analyst estimates compiled by Visible Alpha.
  • Adjusted earnings per share: 74 cents vs. 69 cents expected

Price/mix, a measure of the impact of price increases and sales mix on revenue growth, rose 9%, which the company partially attributed to price increases in most markets.

Still, consumers for the most part accepted higher prices, pushing global unit case volume, a measure of sales growth that strips out the impact of price increases and currency impacts, up 2%.

Organic sales, which strips out the influence of acquisitions and divestitures, grew 11%.

Stock Futures Up Ahead of Day of Big Tech Earnings

October 24, 2023 08:23 AM EDT

Futures contracts connected to the Dow Jones Industrial Average were 0.4% higher in premarket trading Tuesday after Dow component Coca-Cola (KO) beat earnings estimates and boosted its full-year profit outlook.

S&P 500 futures were 0.5% higher a little over an hour before the open.

Nasdaq 100 futures were also up 0.5%.

Sources


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