Stocks opened with modest gains thanks to optimism surrounding the earnings season following reports from a trio of Dow members. The Nasdaq has lagged ahead of Apple’s (AAPL) earnings report, due tonight, while the S&P is drifting around the flat line heading into the afternoon.
ECONOMIC EVENTS: In the U.S., the Case Shiller 20-city home price index slipped 0.1% to 213.66 in November. The Conference Board's Consumer Confidence Index decreased to 120.2 in January from 126.6 in December.
COMPANY NEWS: Shares of 3M (MMM) rose 3% after the company reported better than expected earnings and revenue, even though it also lowered its FY19 EPS view to reflect "the current external environment" and to include the pending acquisition of the technology business of M*Modal, which was previously excluded from guidance.
Fellow Dow member Pfizer (PFE) similarly reported better than expected Q4 results but gave an outlook that was worse than the consensus forecast, but its shares are also 3% higher near noon.
Verizon (VZ), which reported better than expected earnings but lower than expected revenue, said it sees adjusted earnings being "simliar" to last fiscal year. Verizon CEO Hans Vestberg called 2018 "a remarkable year full of 5G firsts" and said the company is "beginning a period of transformational change" as it heads into 2019 and the 5G era. Shares of the communications giant are down 2% near noon.
Shares of GameStop (GME) plunged 28% after the company said it would end an effort to sell itself, citing a lack of available financing at terms a buyer would find acceptable.
California utility PG&E (PCG) and its primary operating subsidiary, Pacific Gas and Electric Company, announced that they have filed voluntary petitions for Chapter 11 bankruptcy protection, stating that it believes this process "will make sure that we have sufficient liquidity to serve our customers and support our operations and obligations."
MAJOR MOVERS: Among the noteworthy gainers was OncoCyte (OCX), which skyrocketed 230% after it said that DetermaVu showed 90% sensitivity in an R&D validation study. Also higher were Sanmina (SANM) and Woodward (WWD), which gained a respective 18% and 17% after reporting quarterly results.
Among the notable losers was Square (SQ), which fell 10% after Raymond James downgraded the stock to Underperform from Market Perform on expectations for slowing growth. Also lower were Brinker (EAT) and Allergan (AGN), which fell 11% and 7%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 109.57, or 0.45%, to 24,637.79, the Nasdaq was down 41.11, or 0.58%, to 7,044.58, and the S&P 500 was down 1.74, or 0.07%, to 2,642.11.
Verizon
-1.08 (-1.96%)
3M
+5.3 (+2.74%)
Pfizer
+1.2 (+3.04%)
GameStop
-4.21 (-27.18%)
PG&E
+1.82 (+15.15%)
OncoCyte
+4.14 (+227.47%)
Sanmina
+4.895 (+17.96%)
Woodward
+12.87 (+16.69%)
Block
-7.84 (-10.28%)
Brinker
-5.13 (-10.83%)
Bought by ABBV
-11.01 (-6.94%)