Stock Market News For April 27, 2017

Benchmarks finished in the red on Wednesday, following the release of Donald Trump's outline for tax reform. Investors were disappointed as they had expected some more details about the tax-reform package. Meanwhile, market watchers kept a close watch on quarterly earnings results.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) declined 0.1% to close at 20,975.09. The S&P 500 fell 0.1% to close at 2,387.45. The tech-laden Nasdaq Composite Index declined 0.27 points to close at 6,025.23. The fear-gauge CBOE Volatility Index (VIX) declined 0.1% to 10.74. A total of around 4.1 billion shares were traded in NYSE on Wednesday. Advancers outpaced declining stocks on the NYSE. For 55% stocks that advanced, 41% declined.

Tax Reform Outline

On Wednesday, the Trump administration unveiled a single page outline for tax-reform plan at a press conference. Steven Mnuchin and Gary Cohn rolled out the outline of White House’s tax-reform plan which included reduction of individual and corporate rates and simplification of the tax code. The plan promised to slash the top income tax rate from 39.6% to 35%. According to the plan, the number of personal income tax brackets would be reduced from seven to three. The new tax rates are expected to be 10%, 25% and 35%.

The plan proposed to double standard deduction for a married couple from $12,700 to approximately $24,000, enabling taxpayers to retain more of their income. As per the proposal, tax breaks for individuals and married couples filing separately is expected to rise from $6,300 to $12,600. The plan promised to reduce other deductions including state and local tax payments used by wealthy Americans. The administration also proposed to reduce the corporate tax rate from 35% to 15% along with repealing the estate tax.

However, investors had expected more details about the proposed tax-reform package from Trump administration. Meanwhile, investors remained focused on the outcome of the U.S. tax-reform plan, expected to relieve individuals and businesses from tax and regulatory burdens.

Earnings Results

Procter & Gamble Co (NYSE:PG) released third-quarter fiscal 2017 financial results, wherein earnings exceeded expectations, while revenues missed the same.Procter & Gamble reported net sales of $15.61 billion which missed the Zacks Consensus Estimate of $15.71 billion. However, the company’s fiscal third-quarter adjusted earnings of $0.96 per share beat the Zacks Consensus Estimate of $0.94. The company’s results were affected by market slowdown, continued geopolitical disruptions and foreign exchange challenges. Shares of the company fell 2.5%.

Shares of Boeing Co (NYSE:BA) declined 1% following the release of its first-quarter 2017 financial results. The company reported revenues of $20.98 billion, missing the Zacks Consensus Estimate of $21.44 billion by 2.1%. However, the company reported adjusted earnings of $2.01 per share in the reported quarter, beating the Zacks Consensus Estimate of $1.91 by 5.2%.

Both, Procter & Gamble and Boeing emerged as the leading decliners for the Dow.

Although, PepsiCo, Inc (NYSE:PEP) reported better-than-expected results in first-quarter 2017, with both earnings and revenues beating the Zacks Consensus Estimate, the company’s shares declined 0.7% as its first-quarter gross margins contracted 45 basis points to 55.97%. Margins were adversely affected by the company's decision to pass on commodity prices to customers in developing markets in a faltered manner. However, PepsiCo’s first-quarter core earnings per share of $0.94 beat the Zacks Consensus Estimate of $0.91. The company reported revenues of $12.05 billion, surpassing the Zacks Consensus Estimate of $11.97 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks that made Headlines

Citrix Systems Beats on Earnings & Revenues in Q1

Citrix Systems Inc. (NASDAQ:CTXS) posted better-than-expected earnings and revenues in the first quarter of 2017. (Read More)

Boston Beer Beats on Q1 Earnings, 2017 View Intact

Boston Beer Co. Inc. (NYSE:SAM) reported robust first-quarter 2017 earnings, wherein the bottom line topped estimates. (Read More)

BCE Inc. Surpasses Q1 Earnings and Revenue Estimates

Leading Canadian telecom operator, BCE Inc. (TO:BCE) reported strong financial results in the first quarter of 2017. (Read More)

Nokia (HE:NOKIA) Misses Earnings and Revenue Estimates in Q1

Nokia Corporation’s (NYSE:NOK) first-quarter 2017 earnings per share of €0.03 (approximately 3 cents) missed the Zacks Consensus Estimate of 4 cents. (Read More)

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