The major averages had a mixed day, as the Dow was weighed down by the post-earnings slide in Boeing (BA) and the Nasdaq held up well despite the announcement last night from the DOJ that its Antitrust Division is probing whether "market-leading online platforms" are "engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers." The earnings newsflow has been getting heavier and will continue after the closing bell with reports from Facebook (FB), Tesla (TSLA) and Ford (F) among many others.
ECONOMIC EVENTS: In the U.S., Markit's flash PMIs were mixed. The manufacturing PMI slipped 0.6 points to 50.0 in July, though the July services PMI rose 0.7 points to 52.2 from June's 51.5 reading. New home sales rose 7.0% to a 646,000 rate, which was a little better than expected, though there were downward adjustments made to the data from the prior two months.
In Asia, Japan's manufacturing flash PMI came in at 49.6, up from 49.3 in June, while the services reading of 52.3 was up from 51.9 in June.
In Europe, the Eurozone flash manufacturing PMI sank to 46.4, while the services PMI was in-line with expectations at 53.3.
TOP NEWS: This morning, the Federal Trade Commission announced that Facebook will pay a "record-breaking" $5B penalty, and submit to new restrictions and a modified corporate structure that "will hold the company accountable for the decisions it makes about its users' privacy," settling FTC charges that the company violated a 2012 FTC order by deceiving users about their ability to control the privacy of their personal information. Facebook chairman and CEO Mark Zuckerberg said he supports the changes, which "go beyond anything required under US law today. "Separately, the SEC announced charges against Facebook for "making misleading disclosures regarding the risk of misuse of Facebook user data," which the company agreed to pay $100M to settle.
Boeing (BA) shares fell 3.1% after the company reported worse than expected quarterly losses that were driven by the charges it took related to the continued grounding of its 737 MAX aircraft. Boeing CEO Dennis Muilenburg said on the associated earnings call that the company expects to be able to maintain 737 production, but it may consider further 737 output costs or a shutdown if warranted if the plane does not return to service within the expected timeline. Meanwhile, NTSB chairman Robert Sumwalt said during testimony at a Senate hearing that the board plans to release 737 MAX recommendations within 60 days.
Caterpillar (CAT) shares slid 4.5% after the heavy equipment maker's earnings missed the consensus forecast and it guided for its FY19 profit per share to be at the lower end of its existing guidance.
AT&T (T) shares were 3.6% higher after the telecom giant reported in-line earnings, better than expected revenue and raised its FY19 free cash flow view. Of note, CEO Randall Stephenson said on the company's quarterly call that CBS (CBS) programming talks over blackouts aren't resolved yet, with Stephenson saying that AT&T made a "reasonable and fair offer five days ago and it's been crickets." In response, CBS said that it is "absolutely" ready and willing to negotiate with the carrier, according to Bloomberg.
MAJOR MOVERS: Among the noteworthy gainers was Snap (SNAP), which rose 18.7% after it reported quarterly results, including 8% growth in Daily Active Users. Also higher after reporting quarterly results were Manhattan Associates (MANH) and Teradyne (TER), which gained 17.7% and 20.5%, respectively.
Among the notable losers was Rio Tinto (RIO), which slid 4.1% after Credit Suisse analyst Sam Webb downgraded the stock to Underperform and after Vale S.A. (VALE) reported that the National Mining Agency authorized the partial resumption of the dry processing operations at the Vargem Grande Complex. Also lower were iRobot (IRBT) and Healthcare Services (HCSG), which fell 16.9% and 21.7%, respectively, after reporting quarterly results.
INDEXES: The Dow fell 79.22, or 0.29%, to 27,269.97, the Nasdaq gained 70.10, or 0.85%, to 8,321.50, and the S&P 500 advanced 14.09, or 0.47%, to 3,019.56.