| 2018-10-17 12:41:13|
NFLX, IBM… 12:41 10/17 10/17/18
Fly Intel: Wall Street's top stories at midday
Stocks opened in negative territory as the shares of IBM (IBM) and Home Depot (HD) weighed on the Dow. There was little help from some of yesterday's big winners, including UnitedHealth (UNH), which saw some profit taking after its post-earnings rise. While the Dow and Nasdaq are still in the red in early afternoon trading, they have each cut their earlier losses while the S&P has made it back to roughly unchanged ahead of the Fed minutes being released later today. Oil prices are lower by more than 2.5% and struggling to stay above $70 a barrel after a larger than expected build in inventory was reported. ECONOMIC EVENTS: In the U.S., housing starts fell 5.3% to a 1.20M rate in September, which was a larger than expected decline. September building permits slipped 0.6% to a 1.24M rate. The FOMC minutes from the Fed's September 25-26 policy meeting are due to be released at 2 pm ET. COMPANY NEWS: Shares of Netflix (NFLX) are up 4% after the streaming giant reported better than expected third quarter earnings, noting that it had 6.96M streaming net additions in the quarter. While the company provided lower than expected fourth quarter earnings guidance, it said it expects streaming net additions for the quarter to be 9.4M members, which was well ahead of the consensus forecast... Also on the earnings front, IBM (IBM) shares were 6% lower after the company reported lower than expected Q3 revenue and maintained its adjusted earnings guidance for fiscal 2018. Of note, the company reported that cognitive solutions revenue for the quarter fell 6% year-over-year... Additionally, shares of United Continental (UAL) rose 6% after the company reported Q3 results and raised its adjusted earnings guidance for FY18. Of note, the carrier said on its quarterly conference call that it won't provide fiscal 2019 EPS guidance until January... In non-earnings news, shares of Caesars (CZR) jumped 15% after Reuters reported that Tilman Fertitta, owner of Golden Nugget Casinos, approached the casino operator about a potential merger. Subsequently, CNBC's David Faber said that Fertitta has offered $13 per share in cash and stock to acquire Caesars. MAJOR MOVERS: Among the noteworthy gainers was Akorn (AKRX), which rose 7.5% after Piper Jaffray analyst David Amsellem upgraded the stock to Overweight and raised his price target for the shares to $9 from $5. Also higher was Cree (CREE), which gained 6% after reporting quarterly results. Among the notable losers was Fresenius Medical (FMS), which slipped 17% after it lowered its outlook for fiscal 2018. Also lower was ADTRAN (ADTN), which fell 12% after reporting quarterly results and providing guidance. INDEXES: Near midday, the Dow was down 35.08, or 0.14%), to 25,763.34, the Nasdaq was down 9.17, or 0.12%, to 7,636.32, and the S&P 500 was up 0.89, or 0.03%, to 2,810.81.
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