The S&P and Nasdaq are rising for a fourth straight day after data on gross domestic product and unemployment claims came in better than expected. The Dow is being dragged a bit by some weakness in Boeing (BA) following a report about greater than previously disclosed damage that was suffered during testing of its newest model of plane. Stocks look set to head into the Thanksgiving holiday and shortened Black Friday session at record highs if these midday levels hold.
ECONOMIC EVENTS: In the U.S., third quarter GDP growth was bumped up to 2.1% from 1.9% in the second reading, which was better than expected. Initial jobless claims fell 15,000 to 213,000 in the week ended November 23. Durable goods orders bounced 0.6% in October, beating estimates. The Chicago PMI bounced 3.1 points to 46.3 in November, largely erasing s 3.9 point drop 43.2 in October. An index of pending home sales fell 1.7% to 106.7 in October.
COMPANY NEWS: Shares of Deere (DE) are down 5% near noon after the farm equipment maker reported better than expected fiscal fourth quarter sales and earnings but also said that "lingering trade tensions coupled with a year of difficult growing and harvesting conditions have caused many farmers to become cautious about making major investments in new equipment." Deere's worldwide sales of agriculture and turf equipment are forecast to decline 5%-10% for fiscal-year 2020, the company guided.
Boeing shares have slipped about 1% after Seattle Times aerospace reporter Dominic Gates broke news that the extent of the damage to a 777X airframe during a test of its structural strength was greater than previously disclosed and said "earlier reports were wrong about crucial details" regarding the new jet. Later in the morning, The Wall Street Journal's Benjamin Katz and Andy Pasztor reported that European and Middle Eastern regulators will run independent certification evaluations of Boeing's 777X aircraft following the 737 MAX crisis.
MAJOR MOVERS: Among the noteworthy gainers was Under Armour (UAA), which rose 5% after Raymond James analyst Matthew McClintock upgraded the stock to Strong Buy from Outperform with an unchanged price target of $30. Under Armour is ahead of plan with new product already available at wholesale partners and selling through at higher level, McClintock tells investors. Further, after speaking to investors, the analyst believes the ongoing communication between Under Armour and the SEC and Department of Justice is likely to be less of an overhang on the stock than he originally feared. Also higher was Autodesk (ADSK), which gained 4% after following the company's earnings report.
Among the notable losers was Evolent Health (EVH), which plunged 32% after its partner Passport Health Plan received notification from the Kentucky Cabinet for Health and Family Services that Passport has not been awarded a Kentucky managed Medicaid contract for the next contract period. Evolent Health CEO Frank Williams said that the company "fully supports" Passport's intent to protest this outcome. Also lower was PVH Corp. (PVH), which is down 3% despite reporting Q3 results that Citi analyst Paul Lejuez called "decent" and giving guidance for Q4 that he thinks "seems achievable."
INDEXES: Near midday, the Dow was up 2.39, or 0.01%, to 28,124.07, the Nasdaq was up 45.26, or 0.52%, to 8,693.19, and the S&P 500 was up 8.01, or 0.26%, to 3,148.53.
Deere
-9.26 (-5.23%)
Boeing
-2.305 (-0.62%)
Evolent Health
-3.57 (-33.40%)
Under Armour
+1.01 (+5.61%)
Autodesk
+6.67 (+3.90%)
Under Armour
+0.86 (+5.22%)
PVH Corp.
-2.99 (-2.99%)