The major averages spent the day trading in a range on either side of the flat-line as stimulus negotiations dragged on in Washington. House Speaker Nancy Pelosi's self-imposed deadline passed yesterday, but there have been some signals from her and from fellow lawmakers that differences have narrowed. The Speaker and Treasury Secretary Steve Mnuchin held another call this afternoon as the sides continue to try to hammer out a deal on more fiscal assistance.
ECONOMIC EVENTS: In the U.S., WTI crude was range-bound on either side of $41.00 following EIA inventory data that showed a 1.0M barrel weekly decline in crude inventories.
In Federal Reserve news, the Fed said in its latest Beige Book that employment increased in nearly all Fed districts over the most recent period, with prices rising modestly across districts.
In Capitol Hill news, Bloomberg reported that House Speaker Nancy Pelosi said there will be another COVID-19 stimulus bill, the question is on timing. The Speaker added that she wants to pass such a bill before the November 3 election.
TOP NEWS: Shares of Netflix (NFLX) fell 6.9% after the streaming giant reported lower than expected Q3 results, with earnings and paid net additions that fell short of consensus estimates. Of note, the company said on its quarterly call that the Q3 net additions miss was just "forecast noise" and that customer acquisition "remains strong." Following the report, no fewer than seven analysts raised their price targets on Netflix shares, with BMO analyst Daniel Salmon saying investors should buy the stock as the market focus will shift from a "short-term" view on subs to prioritize the "reality of consistent free cash flow generation."
Verizon (VZ) shares slipped fractionally after the company reported quarterly results. The telecommunications giant raised its adjusted earnings guidance for fiscal 2020 and noted on its quarterly call that consumer traffic is still not at pre-pandemic levels.
In other earnings news, shares of Snap (SNAP) surged 28.3% higher after the company reported better than expected third quarter earnings and revenue, with daily active users increasing 18% year-over-year in the quarter to 249M. While the company did not provide revenue or adjusted EBITDA guidance for the fourth quarter, it said in prepared earnings call remarks that 47%-50% year-over-year revenue growth in Q4 is "attainable." Snap added that it sees Q4 daily active user growth of 18% year-over-year.
On the M&A front, Pioneer Natural (PXD) agreed to acquire all outstanding shares of Parsley Energy (PE) in an all-stock transaction valued at roughly $4.5B as of October 19. Under the terms of the agreement, Parsley shareholders will receive a fixed exchange ratio of 0.1252 shares of Pioneer common stock for each share of Parsley common stock owned. The total value for the transaction, inclusive of Parsley debt assumed by Pioneer, is approximately $7.6B. Following the news, shares of Pioneer Natural and Parsley Energy fell a respective 6.1% and 8.5%.
Meanwhile, AstraZeneca (AZN) shares finished 1.2% lower after Reuters reported that a participant in the company's COVID-19 trial in Brazil has died. Bloomberg later reported that said volunteer did not receive the vaccine. According to Sky News, Oxford University, which is co-developing the vaccine, said that the trial will continue.
MAJOR MOVERS: Among the noteworthy gainers was Pinterest (PINS), which rose almost 9% after both Bank of America analyst Justin Post and Goldman Sachs analyst Heath Terry upgraded the stock to Buy following Snap's earnings beat. Also higher was Calix (CALX), which gained 20.5% after reporting quarterly results.
Among the notable losers was Crispr Therapeutics (CRSP), which fell 13.6% after it reported top-line results from its Phase 1 CARBON trial of CTX110. Also lower was iRobot (IRBT), which dipped over 13% after reporting quarterly results.
INDEXES: The Dow fell 97.97, or 0.35%, to 28,210.82, the Nasdaq lost 31.80, or 0.28%, to 11,484.69, and the S&P 500 declined 7.56, or 0.22%, to 3,435.56.
Netflix
-36.44 (-6.93%)
Verizon
-0.47 (-0.82%)
Snap
+8.06 (+28.34%)
Pioneer Natural
-5.205 (-6.22%)
Parsley Energy
-0.92 (-8.65%)
AstraZeneca
-0.62 (-1.19%)
+4.07 (+8.98%)
Calix
+4.32 (+20.45%)
Crispr Therapeutics
-14.68 (-13.73%)
iRobot
-12.47 (-13.00%)