U.S. stocks wilted Tuesday morning after back-to-back days of gains as investors evaluated another round of quarterly financial results from companies.
Stocks resumed regular trading after dozens of names on the New York Stock Exchange (NYSE) were halted for volatility shortly after markets opened. A spokesperson for the New York Stock exchange did not immediately respond to a request from Yahoo Finance for more information.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) each barreled down roughly 0.5% at the open, while the technology-heavy Nasdaq Composite (^IXIC) was off by 0.4%.
Major stocks briefly affected by the apparent technical issue at the NYSE included Morgan Stanley (MS), AT&T (T), McDonalds (MCD), and Walmart (WMT). As of 9:50 a.m. ET, the New York Stock Exchange said all systems were “operational.”
Among specific names in focus early Tuesday, shares of Verizon (VZ) edged higher after the company reported what the company deemed its best subscribed growth in seven years for the last three months of 2022 while forecasting annual profit below analyst estimates.
General Electric’s (GE) stock fell 1.4% after reporting a fourth-quarter profit that was weighed down by its renewable energy business, even as the industrials company delivered an upbeat profit forecast, citing strong demand for its jet engines and power equipment.
Johnson & Johnson (JNJ) shares pared an earlier advanced after the healthcare giant reported full-year guidance above expectations despite the company’s chief executive officer warning earlier this year that the macroeconomic outlook is uncertain.
Shares of 3M Company (MMM) tumbled 6% after the manufacturing conglomerate reported a lower profit over an inflation-related drop in demand for items including air purifiers and respirators, while announcing it would cut 2,500 jobs.
Traders work on the floor of the New York Stock Exchange during opening bell in New York City on January 18, 2023. (Photo by ANGELA WEISS/AFP via Getty Images)
In other pockets of the market, the U.S. dollar steadied after falling to the lowest in nine months across recent days, while in commodities, oil futures inched higher. West Texas Intermediate (WTI) oil — the U.S. benchmark — traded near $82 per barrel.
The earnings season has been off to a milder start. The fourth-quarter net profit margin for the S&P 500 so far is 11.4%, below the previous quarter’s net profit margin of 11.9% and below the year-ago net profit margin of 12.4%, according to FactSet data. Moreover, consensus earnings estimates for 2023 have steadily trended lower.
On the economic front, Thursday’s gross domestic product (GDP) reading is the highlight of the week. However, investors remain squarely focused on the Federal Reserve’s next rate announcement at the start of February, with officials expected to downshift to a smaller hike.
The CME FedWatch Tool, which serves as a barometer for imminent Fed rate and U.S. monetary policy, shows markets were pricing in a 99.1% chance of a 25-basis point hike as of Tuesday morning.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
