The major averages finished the day slightly lower but not far off of their all-time record levels as investors digested another heavy dose of earnings reports, including from Dow members Boeing (BA) and Caterpillar (CAT). The earnings march continues apace after the close, highlighted by reports from Microsoft (MSFT), Facebook (FB), Visa (V) and Tesla (TSLA).
ECONOMIC EVENTS: In the U.S., the MBA mortgage market index dropped 7.3% in the week ended April 19.
TOP NEWS: In M&A news, Occidental Petroleum (OXY) revealed that it has sent a letter to the Anadarko (APC) board offering to outbid Chevron (CVX) with a proposed buyout of $76 per share, which is 20% higher than Chevron previously accepted offer and has greater proportion of cash.
Boeing (BA) was in focus after it reported worse than expected first quarter core EPS and revenue and also withdrew its previously issued 2019 guidance "due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet." The planemaker said it is "making steady progress on the path to final certification for a software update for the 737 MAX" and continues to work closely with global regulators and its airline partners.
AT&T (T) shares slipped just over 4% after the communications services and media giant posted in-line earnings and lower than expected revenue, while Caterpillar (CAT) fell 3.2% after the heavy machinery maker raised its fiscal year outlook but attributed the better view to a discrete tax benefit related to U.S. tax reform.
Shares of CBS (CBS) were fractionally higher and shares of Viacom (VIAB) rose about 1.4% after Joseph Ianniello agreed to extend his role as President and Acting CEO of the former, fueling additional merger speculation.
Meanwhile, Macy's (M) gained 1.6% after Bloomberg reported that the retailer has held preliminary talks with New York City officials about building a skyscraper on top of its flagship store in Manhattan's Herald Square.
Additionally, Amazon (AMZN) was in focus after The Information reported that the company is testing a program to combat patent infringement.
MAJOR MOVERS: Among the noteworthy gainers was SAP (SAP), which rose 12.4% in New York after Reuters reported that Elliott Management disclosed a roughly $1.35B stake in the company and said it supports a management strategy review. Also higher were Silicon Labs (SLAB) and eBay (EBAY), which gained a respective 17.6% and 5% after reporting quarterly results.
Among the notable losers was RPC (RES), which slid 17.8% after it reported lower than expected quarterly results and cut its quarterly dividend. Also lower after reporting quarterly results were iRobot (IRBT) and Snap (SNAP), which fell 23.1% and 6.2%, respectively.
INDEXES: The Dow fell 59.34, or 0.22%, to 26,597.05, the Nasdaq lost 18.81, or 0.23%, to 8,102.01, and the S&P 500 declined 6.43, or 0.22%, to 2,927.25.