Stocks opened mixed and remained that way throughout the session. The Nasdaq was in a deep hole at the open as Facebook (FB) shares weighed on the index and dragged on other technology names after its earnings report. Investors spent the day digesting the latest round of reports and braced for the next barrage in what will be the busiest day for earnings for this quarter. ECONOMIC EVENTS: In the U.S., the advance indicators report revealed a surprisingly small June widening in the trade gap for goods, with an expected export pull-back alongside a smaller than expected import bounce. The durables report tracked estimates with a transportation-led 1.0% June orders bounce alongside a 0.4% ex-transportation rise. Initial jobless claims rose 9,000 to 217,000 in the week ended July 21. COMPANY NEWS: Facebook had a historically bad day, as the company's market cap was shaved by well over $100B following the company's guidance last night for slower growth and a drag on profits as it invests in user safety following the Cambridge Analytica scandal. Overall, Facebook shares plunged 19% for the day... Qualcomm (QCOM) terminated its planned acquisition of NXP Semiconductors (NXPI) and said it will execute on a $30B share repurchase plan in its place given the difficulty getting the deal approved in China, the company announced along with earnings last night. NXP, which received $2B in compensation from Qualcomm due to the deal termination, fell 5.7% following the news, while Qualcomm shares were 7% higher... Shares of Supervalu (SVU) surged 65% to close at $32.17 after distributor United Natural Foods (UNFI) announced an agreement to acquire the grocer for $32.50 per share in cash, or approximately $2.9B... McDonald's (MCD) reported adjusted earnings and revenue that topped expectations in the second quarter, aided by its global comparable sales increase of 4.0%... Meanwhile, the Wall Street Journal reported that Wells Fargo (WFC) is exploring a sale of its Eastdil Secured real-estate business as the bank continues to shed noncore businesses... In addition, Synchrony Financial (SYF) dropped 10% after the Journal reported that Walmart (WMT) has picked Capital One (COF) as the new issuer of its store credit card, ending a nearly 20-year partnership with Synchrony. The card issuing company later confirmed in a regulatory filing that its program agreement with the retailer will not be renewed. MAJOR MOVERS: Among the noteworthy gainers was AMD (AMD), which rose 14% after reporting better than expected quarterly results. Also higher after reporting quarterly earnings were Southwest (LUV) and Under Armour (UAA), which gained a respective 8.4% and 4.5%. Additionally, shares of Yum China (YUMC) jumped 11% after The Information reported that Chinese tech investor Hillhouse is in talks to buy the fast-food restaurant company. Among the notable losers was Ford (F), which fell 6% after reporting downbeat quarterly earnings, cuttings its fiscal 2018 earnings outlook, and announcing a global redesign and restructuring process. Also lower after reporting quarterly results were PayPal (PYPL) and MasterCard (MA), which dropped 2.4% and 3%, respectively. INDEXES: The Dow rose 112.97, or 0.44%, to 25,527.07, the Nasdaq lost 80.05, or 1.01%, to 7,852.18, and the S&P 500 declined 8.63, or 0.30%, to 2,837.44.
