US benchmarks mixed, Dow Jones lower
TSX up 176 pts
IBM shares down
US benchmarks ended mixed Wednesday, with the Dow Jones down over 38 points to 24,748 as IBM (NYSE: IBM) earnings continued to weigh.
The computing giant posted better than expected earnings and revenue but analysts and investors balked at lower-than-expected adjusted margins.
IBM is down 13% in the last 12 months underlining he scale of the slide.
On Wall Street, the S&P 500 added 2.25 at 2,708, while the Nasdaq added over 14 at 7,295.
In Toronto, the TSX flew on the day and added over 176 points at 15,529.
Analyst6 David Madden, at CMC Markets earlier summed up US trading as "mixed" in the afternoon session as it has been a "quiet" day in terms of news.
"There has been some profit-taking after New York had a strong finish last night. The hasn’t been any new negative news, but that doesn’t mean the concerns about Russian sanctions, Chinese trade tensions and uncertainty in the Middle East has gone away," he said.
In afternoon trading, the US benchmarks were all on the rise.
The S&P 500 gained 9 points, reaching 2,715.
The Nasdaq added 30 points, reaching 7,311.
The Dow was up about 2 points to 24,788.
The TSX jumped 197 points to 15,550, spurred on by Bank of Canada’s decision to hold its interest rate.
Energy stocks rose in Toronto as oil prices rose on supply concerns.
In the currency market, the US dollar was up slightly by 0.05% to $89.56. The Euro rose by 0.14% after reaching a three-week high on Tuesday.
Intuitive Surgical Inc (NASDAQ: ISRG) was a top gainer, jumping 8.7% to US$473.40 after its first quarter profit beat analyst estimates. The Florida-based company’s profits rose to US$287.6mln this quarter versus $180.8mln the previous year.
Best Buy Co Inc (NYSE:BBY) shares rose 3.8% after announcing a partnership with Amazon Inc (NASDAQ:AMZN) to sell smart TVs with streaming service Fire TV built-in. Best Buy’s in-house brand Insignia will no longer use Roku’s (NASDAQ: ROKU) operating system, according to a report by The Wall Street Journal.
In response to the partnership, shares of streaming company Roku fell 8.7%.
Early Trading Session:
If the markets stay higher, it could mean the US benchmarks finish higher for the third day in a row.
The Dow Jones added over four points at the time of writing at 24,790.
Stocks start higher as the earnings rally continues. Tesla pops on the open as Elon doubles down on fixing the problems this qtr. $tsla More great numbers from US companies. So far very solid qtr.— Ross Gerber (@GerberKawasaki) 18 April 2018
The S &P 500 is up almost six points at 2,712.
The tech heavy Nasdaq is up nearly two points, at 7,282.
In Toronto, the TSX is racing - up 135 points at 15,488.
On the Dow, IBM shares tanked 6.48% to US$150.48 as it posted profit margins that missed Wall Street expectations after the close yesterday.
Conversely, Home Depot Inc (NYSE: HD) was top riser on the Dow, up 1.94% to US$178.35.
US futures point to a higher start on Wednesday after benchmarks closed sharply higher yesterday.
The Dow Jones closed out over 213 points at 24,786 yesterday and futures are currently trading 91 points higher.
Moving in pre-market trade in New York and dragging on the Dow is International Business Machines (NYSE: IBM), which shed over 5% in pre-market to US$152.50.
It comes after the group reported after the close, profit that missed estimates.
Net income fell to US$1.68bn, or US$1.82 a share, from US$1.75bln, or US$1.86 a share, a year earlier.
Going the other way before the bell was Intuitive Surgical Inc (NASDAQ: ISRG), which gained 4.72% to US$456. The robotic products group reported stronger-than-expected results for its first quarter.
The bank today reported quarterly profits of an eye-watering US$2.67 billion, or US$1.45 a share, on revenues of US$11.08 billion. Both figures were higher than a year ago and beat average analyst estimates.
Lam Research Corporation (NASDAQ: LRCX), the semiconductor processing focused group, saw shares tank 5.34% below the bell to US$201 despite a third quarter earnings beat.
The firm sees fourth quarter EPS (earnings per share) of between US$4.80 and US$5.20 and sales of between US$2.85bn and US$3.15 billion.
In London, FTSE 100 is up over 64 points to 7,290.