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Stock Market News For Nov 8, 2017

Published 11/07/2017, 09:48 PM
Updated 07/09/2023, 06:31 AM

Benchmarks closed mixed on Tuesday with the Dow finishing at new highs and the S&P 500 and the Nasdaq ending in the red. Weak profit forecasts from both Priceline and TripAdvisor pulled the consumer discretionary sector downward, which in turn weighed on the broader markets. Also, decline in bond yields weighed on financials and concerns over the timing and implementation of Trump’s tax cut plans resulted in a small-cap stock selloff.

The Dow Jones Industrial Average (DJIA) increased 0.04%, to close at 23,557.23. However, the S&P 500 Index (INX) fell 0.49 points to close at 2,590.64. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,767.78, losing 0.3%. A total of 7.0 billion shares were traded on Tuesday, higher than the last 20-session average of 6.4 billion shares. Decliners outnumbered advancers on the NYSE by a 1.39-to-1 ratio. On Nasdaq, a 2.50-to-1 ratio favored declining issues. The CBOE VIX increased 4.7% to close at 9.85.

What Boosted the Dow?

The Walt Disney Company (NYSE:DIS) was reportedly in talks recently with Twenty-First Century Fox, Inc. (NASDAQ:FOXA) to acquire a large part of the latter’s entertainment business. Although, there is no certainty whether the deal will go through, shares of Walt Disney increased 1% following this development. Gains in Walt Disney boosted the blue-chip index to close on a new high on Monday. Walt Disney holds a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Financials, Consumer Discretionary and Small-Cap Stocks Fall

Fed officials have, in the recent past, been bullish regarding the U.S. economy, which along with stronger job openings data and lower unemployment rate. Following these developments, yields for U.S. government bonds declined after a step up in demand raised bond prices. Fall in bond yields weighed on bank stocks, which eventually dragged the financial sector downward. The Financial Select Sector SPDR (XLF) declined 1.4%, was the biggest loser among the S&P 500 sectors.

Shares of both The Priceline Group Inc. (NASDAQ:PCLN) and TripAdvisor, Inc. (NASDAQ:TRIP) fell 13.5% and 23.2%, respectively after the online travel companies offered weak quarterly earnings projections. Decline in both the companies led the Consumer Discretionary Select Sector ETF (XLY) to fall 0.6%, emerging as the second worst performing sector among the S&P 500.

Additionally, Republicans of the House finally unveiled a detailed tax cut policy last week under the Tax Cuts and Jobs Act which seeks to reduce corporate and revoke the taxes paid by large businesses. Also, this week the Senate is expected to come up with its own version of the tax cuts Bill. However, concerns remained about the tax plan lingered, which led the key small-cap index, Russell 2000 (RUT) to slump 1.3%.

Stocks That Made Headlines

Dean Foods Q3 Earnings In Line, Stock Down on View Cut

Shares of Dean Foods Company (NYSE:DF) declined as the company slashed its adjusted earnings view for 2017 after reporting in-line third-quarter 2017 earnings. (Read More)

Sealed Air Q3 Earnings In Line, Maintains '17 EPS View

Sealed Air Corporation (NYSE:SEE) reported third-quarter 2017 adjusted earnings per share, which came in line with the Zacks Consensus Estimate. (Read More)

Petrobras to Sell Stake in Nigeria JV to Reduce Debt

Petrobras (NYSE:PBR) recently announced plans to divest its 50% stake in an African oil exploration joint venture (“JV”) in Nigeria. (Read More)

Allegiant Down on Dismal Load Factor Performance in October

Allegiant Travel Company (NASDAQ:ALGT) reported traffic numbers for October. (Read More)

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>



Allegiant Travel Company (ALGT): Free Stock Analysis Report

Walt Disney Company (The) (DIS): Free Stock Analysis Report

The Priceline Group Inc. (PCLN): Free Stock Analysis Report

TripAdvisor, Inc. (TRIP): Free Stock Analysis Report

Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report

Sealed Air Corporation (SEE): Free Stock Analysis Report

Dean Foods Company (DF): Free Stock Analysis Report

Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report

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