Stock Market News for February 09, 2017

Benchmarks ended mixed on Wednesday after gains from an oil prices rally were trimmed following a decline in financial stocks. Despite a higher-than-expected increase in crude inventories, oil prices made a rebound on the back of decline in gasoline inventories. However, lack of clarity over President Trump's economic policies including financial deregulation and tax reforms weighed on financial sector. Moreover, investors digested a mixed bag of 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) decreased 0.2%, to close at 20,054.34. The S&P 500 rose 0.1% to close at 2,294.67. The tech-laden Nasdaq Composite Index closed at 5,682.45, gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) advanced 1.2% to settle at 11.42. A total of around 6.7 billion shares were traded Wednesday in line with the last 20-session average. Advancers outpaced declining stocks on the NYSE. For 54% stocks that advanced, 42% declined.

What Boosted The S&P 500 And Nasdaq?

The U.S. Energy Information Administration (EIA) reported that U.S. commercial crude oil inventories rose 13.8 million barrels for the week ending Feb 3 to 508.6 million barrels, its fifth straight week of increase.

Although crude inventories advanced for the week gasoline inventories slumped 0.9 million barrels in contrast to a rise of 2.9 million barrels as estimated by the American Petroleum Institute (API). Decline in gasoline inventories led both WTI and Brent crude to increase 0.3% and 0.1% to $52.34 per barrel and $55.12 a barrel, respectively.

Additionally, Pioneer Natural Resources Company's ( PXD ) shares rose 3.9% after its fourth quarter earnings per share and revenues beat the respective Zacks Consensus Estimate. ( Read More )

Rise in oil prices and gains in Pioneer Natural Resources led the Energy Select Sector SPDR (XLE) to advance 0.2%. Some of its holdings including Kinder Morgan, Inc. ( KMI ) and Valero Energy Corporation ( VLO ) soared 1.3% and 2.5%, respectively. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

What Weighed on the Dow?

However, investors remained skeptical over Trump's approach on foreign trade and economic policies. Uncertainty over implementation of Trump's financial policies weighed on investor sentiment. Financial stocks, which gained following Trump's victory in the U.S. Presidential election registered their biggest decline yesterday.

The Financial Select Sector SPDR (XLF) decreased 0.7% and was the worst performing sector among the S&P 500. Key components from this sector like JPMorgan Chase & Co. ( JPM ), Citigroup Inc. ( C ) and Morgan Stanley ( MS ) declined 0.9%, 1.5% and 2.1%, respectively.

Mixed Earnings in Focus

In other earnings news, shares of Microchip Technology Incorporated ( MCHP ) climbed 6% after the company reported third-quarter fiscal adjusted earnings of $1.00 per share, which beat the Zacks Consensus Estimate by 19 cents. Microchip Technology was the biggest gainer among the S&P 500 companies yesterday. ( Read More )

Meanwhile, Gilead Sciences Inc's ( GILD ) shares slumped 8.6% after the company reduced its 2017 guidance. However, the company reported higher than expected earnings per share and revenues for the fourth-quarter. ( Read More )

As of Wednesday, February 8th, we have seen Q4 results from 319 S&P 500 members that combined account for 76.3% of the index's total market capitalization. Total earnings for these 319 index members are up +5.8% on +4.5% higher revenues, with 69.6% beating EPS estimates and 54.5% coming ahead of top-line expectations. The proportion of companies beating both EPS and revenue estimates is 41.4%. ( Read More )

Stocks That Made Headlines

Citi Trends' Q4 & FY16 Sales Lag; Declares Dividend

Citi Trends Inc. ( CTRN ) reported lower-than-expected sales results for fourth-quarter and fiscal 2016. ( Read More )

Level 3 Communications Tops Q4 Earnings, Revenues Lag

Level 3 Communications Inc ( LVLT ) reported mixed financial results in the fourth quarter of 2016. ( Read More )

CenturyLink Lags Q4 Earnings and Revenue Estimates

CenturyLink Inc. ( CTL ) reported weak financial results in the fourth quarter of 2016, wherein both the bottom line and top line fell short of the Zacks Consensus Estimate. ( Read More )

Whole Foods Meets Q1 Earnings, Lags Sales; Trims View

Whole Foods Market, Inc. ( WFM ) posted first-quarter fiscal 2017 adjusted earnings per share that came in line with the Zacks Consensus Estimate. ( Read More )

Anthem-Cigna Merger Receives a Blow from Federal Judge

As anticipated, the merger between Anthem Inc. ( ANTM ) and Cigna Corp. ( CI ) has also been blown away by a federal judge. ( Read More )

Where Do Zacks' Investment Ideas Come From?

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Pioneer Natural Resources Company (PXD): Free Stock Analysis Report

Kinder Morgan, Inc. (KMI): Free Stock Analysis Report

Valero Energy Corporation (VLO): Free Stock Analysis Report

J P Morgan Chase & Co (JPM): Free Stock Analysis Report

Citigroup Inc. (C): Free Stock Analysis Report

Morgan Stanley (MS): Free Stock Analysis Report

Microchip Technology Incorporated (MCHP): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

Citi Trends, Inc. (CTRN): Free Stock Analysis Report

Level 3 Communications, Inc. (LVLT): Free Stock Analysis Report

CenturyLink, Inc. (CTL): Free Stock Analysis Report

Whole Foods Market, Inc. (WFM): Free Stock Analysis Report

Anthem, Inc. (ANTM): Free Stock Analysis Report

Cigna Corporation (CI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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