Stocks have been a bit volatile this morning as the S&P 500 opened lower, bounced, fell again and now has rallied back into positive ground near midday. The Dow is higher as well, which is of particular note given that both Boeing (BA) and Caterpillar (CAT) missed earnings expectations. However, the former is trading higher and the latter, which also cut its full-year outlook, is little changed as investors may have been betting on bad news from both.
ECONOMIC EVENTS: In the U.S., the FHFA home price index rose 0.2% in August to 277.4
In political news, President Trump announced that he is lifting sanctions on Turkey after the country said they will be ending combat and imposing a permanent ceasefire in Syria.
TOP NEWS: Shares of Boeing are up about 1% despite the planemaker having reported significantly worse than expected core EPS and deeply negative operating cash flow in the third quarter. Boeing, which reported 62 commercial airplanes delivered during the quarter, said it assumes that regulatory approval of the 737 MAX return to service begins in the fourth quarter of 2019 and that it will gradually increase the 737 production rate from 42 per month to 57 per month by late 2020.
Caterpillar, like Boeing, reported worse than expected third quarter EPS, but the fellow Dow member's shares are only fractionally lower near noon. Caterpillar cut its FY19 EPS view to $10.90-$11.40 from the "low end" of $12.06-$13.06, stating that its revised guidance now assumes modestly lower sales in 2019.
Texas Instruments (TXN) reported in-line September quarter results but its December quarter guidance was meaningfully below expectations and implies an expectation for worsening year-over-year declines, sending the stock down 6%. Several other semiconductor stocks have followed TI lower given the company's downbeat outlook, including Analog Devices (ADI), Microchip (MCHP), Xilinx (XLNX) and NXP Semiconductors (NXPI).
Eli Lilly (LLY) is among the laggards on the S&P 500, sliding 2.5%, despite the drugmaker's report of better than expected earnings and raise to its fiscal year profit forecast.
Facebook (FB) shares were up 1.25% near noon as CEO Mark Zuckerberg testified to the House Financial Services Committee.
MAJOR MOVERS: Among the noteworthy gainers was Teekay Tankers (TNK), which rose 11% after Jefferies analyst Randy Giveans upgraded shares to Buy from Hold with a price target of $2.50, up from $1.50. The analyst increased his price targets for all tanker companies saying asset values are starting to reflect the "massive increases" in charter rates. Also higher were Winnebago (WGO) and Thermo Fisher (TMO), which gained a respective 10% and 6% after reportinig quarterly results.
Among the notable losers was Snap (SNAP), which fell 6% despite reporting upside to revenue, daily active users and adjusted EBITDA in Q3. However, its outlook for Q4 met Street expectations, it did not exceed them, which may have been a disappointment given the recently more bullish commentary of analysts. Resideo (REZI) dropped 41% after it reported lower than expected preliminary Q3 revenue, cut its fiscal 2019 revenue growth guidance, announced the start of a comprehensive operational and financial review, and said that CFO Joseph Ragan will leave the company to pursue other opportunities. Also lower were K12 (LRN) and Chipotle (CMG), which fell 19% and 5%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 18.03, or 0.07%, to 26,806.13, the Nasdaq was up 1.89, or 0.02%, to 8,106.19, and the S&P 500 was up 3.16, or 0.11%, to 2,999.15.