Stocks opened with losses that were modest in comparison to the huge gains made over the past week. The averages soon turned mixed, where they remain near noon as the market digests its post-election gains. Investors are waiting for the Fed's interest rate decision due out this afternoon, though expectations are for rates to remain unchanged until at least December's FOMC meeting.
ECONOMIC EVENTS: In the U.S., initial jobless claims dipped 1,000 to 214,000 in the first week of November. The Federal Reserve is not expected to raise interest rates at its meeting that ends this afternoon, but another hike is still expected in December. The decision and accompanying commentary will be released by the central bank at 2 pm ET, though no press conference with Chair Jerome Powell will follow.
COMPANY NEWS: Shares of Qualcomm (QCOM) fell 7% despite strong Q4 results, as Deutsche Bank analyst Ross Seymore said the company's fiscal Q1 guidance "disappointed on a number of metrics." Stifel analyst Kevin Cassidy noted that MSM shipments are expected to decline about 20% in fiscal Q1, 50% of which is due to Apple (AAPL) now using Intel (INTC) modems.
Shares of Wynn Resorts (WYNN) fell in morning trading and dragged down other Macau casino operators after the company's executives warned of a slowdown in the key Macau market following the Golden Week holiday. While Wynn is down 11.5% near noon, Macau casino peers Las Vegas Sands (LVS) and MGM Resorts (MGM) have fallen 4% and 2.5%, respectively.
Shares of Square (SQ) are down 9.5% near noon despite the payments company having reported its sixth straight quarter of accelerated growth last night. Square reported results above expectations and raised 2018 revenue guidance, but BTIG analyst Mark Palmer said the company's gross payment volume growth of 29% was not "sufficiently strong" for a stock trading at 47-times enterprise value to expected EBITDA. Palmer also believes that investors may be more concerned with Square's core payment processing business slowing.
Shares of Monster Beverage (MSNT) dropped 4% following the company's quarterly report. The energy drink maker's results were better than expected, but that was largely overshadowed by the company revealing a dispute with partner Coca-Cola (KO) over its own plans to potentially launch two Coke-branded energy drinks.
MAJOR MOVERS: Among the noteworthy gainers was Vanda Pharmaceuticals (NVDA), which rose 15% after Jefferies assumed coverage of the stock with a Buy rating and $26 price target a day after the comapny reported quarterly results. Also higher after reporting quarterly results were Sally Beauty (SBH) and TripAdvisor (TRIP), which gained 20% and 15%, respectively.
Among the notable losers was CommScope (COMM), which slid 21% after it reporting quarterly results and agreed to acquire Arris (ARRS) for $31.75 per share. Arris shares were 10% higher after the news. Also lower after reporting quarterly results were Roku (ROKU) and Ctrip.com (CTRP), which fell a respective 17.5% and 18%.
INDEXES: Near midday, the Dow was up 71.15, or 0.27%, to 26,251.45, the Nasdaq was down 26.06, or 0.34%, to 7,544.70, and the S&P 500 was down 1.37, or 0.05%, to 2,812.52.
Qualcomm
-4.54 (-7.19%)
Apple
-1.88 (-0.90%)
Intel
+0.46 (+0.94%)
Block
-7.3 (-8.83%)
Wynn Resorts
-12.63 (-11.07%)
MGM Resorts
-0.71 (-2.54%)
Las Vegas Sands
-2.575 (-4.55%)
Monster Beverage
-2.01 (-3.60%)
Coca-Cola
-0.09 (-0.18%)
Vanda Pharmaceuticals
+3.41 (+16.68%)
Sally Beauty
+3.75 (+19.96%)
TripAdvisor
+8.71 (+14.99%)
CommScope
-5.14 (-20.98%)
Arris
+2.81 (+10.12%)
Roku
-10.71 (-18.18%)
Symbol now TCOM
-6.44 (-18.68%)