Markets
WMT

Stock Market News for November 18, 2015

Benchmarks ended nearly unchanged on Tuesday amid upbeat retail earnings data, lingering terror concerns and drop in global oil prices . Encouraging quarterly earnings results by Wal-Mart Stores and Home Depot boosted the broader markets. However, all three major indexes erased most of their gains after a soccer match between Germany and Netherlands was called off on fears of bombing. Moreover, oil prices fell on oversupply concerns, which eventually had a negative impact on energy shares. While the Dow and the Nasdaq managed to eke out gains, the S&P 500 settled in negative territory.

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) gained a meager 0.04% to close at 17,489.50. The Standard & Poor's 500 (S&P 500) lost 0.1% to close at 2,050.44. The tech-laden Nasdaq Composite Index closed at 4,986.02, advancing a scanty 0.03%. The fear-gauge CBOE Volatility Index (VIX) gained 3.7% to settle at 18.84. A total of around 7.5 billion shares were traded on Tuesday, higher than the last 20-session average of 7.2 billion. Decliners outpaced advancing stocks on the NYSE. For 62% stocks that declined, 36% advanced.

Benchmarks ventured into positive territory on Tuesday, boosted by strong quarterly earnings results by Wal-Mart Stores Inc. ( WMT ) and The Home Depot, Inc. ( HD ). Wal-Mart reported fiscal third quarter 2016 earnings per share of $1.03 that beat the Zacks Consensus Estimate of 97 cents. However, revenues of $117.4 million slightly missed the Zacks Consensus Estimate of $117.9 million. Shares of the retailer gained 3.5%.

Shares of Home Depot advanced 4.4% after the company posted third quarter earnings per share of $1.36, beating the Zacks Consensus Estimate of $1.32. Revenues for the quarter came in at $21,819 million, ahead of the Zacks Consensus Estimate of $21,751 million. Encouraging quarterly results from the retailers eased fears of a possible slowdown in consumer-spending levels.

However, the major indexes struggled to hold on to their gains in late afternoon trade following news that a friendly soccer match between Germany and Netherlands was called off two hours before the start of play due to a possible terror threat. The Hannover stadium hosting the soccer game was evacuated.

Hannover police Chief Volker Kluwe said that "We received a serious tip that an explosive attack was planned for the stadium". These developments came in four days after the terror attacks in Paris, in what is France's most deadly terror attack ever.

Additionally, energy shares took a beating due to drop in oil prices. Concerns about oversupply of oil were primarily responsible for dragging oil prices lower. Prices of WTI crude oil and Brent crude oil dropped 2.6% and 2.3% to $40.67 a barrel and $43.57 per barrel, respectively.

The Energy Select Sector SPDR (XLE) declined 1.1%, the second highest among the S&P 500 sectors. Key stocks from the energy sector including Chevron Corporation ( CVX ), ConocoPhillips ( COP ), Kinder Morgan, Inc. ( KMI ) and Occidental Petroleum Corporation ( OXY ) decreased 0.5%, 0.9%, 2.8% and 0.9%, respectively.

Separately, the Utilities Select Sector SPDR (XLU) declined 1.8% and was the biggest loser among the S&P 500 sectors. Key stocks from the sector including PPL Corporation ( PPL ), Duke Energy Corporation ( DUK ), Edison International ( EIX ) and Southern Company ( SO ) decreased 1.9%, 2.8%, 1.9% and 1.4%, respectively. Overall, 7 out of 12 sectors of the S&P 500 ended in the red, with the index also settling in negative territory. On the other hand, the Dow and the Nasdaq ended nearly flat.

In economic news, the Labor Department reported that Consumer Price Index (CPI) advanced 0.2% in October, in line with the consensus estimate. This was preceded by a 0.2% decline in September. Core CPI, which excludes food and energy prices also gained 0.2% last month, in line with the consensus estimate.

Separately, the Board of Governors of the Federal Reserve System reported a decrease in industrial production. The report stated industrial production declined 0.2% in October after it slipped 0.2% in September. This decline in industrial production in October was in contrast to the consensus expectation of it remaining unchanged. Separately, capacity utilization declined to 77.5%, in line with the consensus estimate.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WAL-MART STORES (WMT): Free Stock Analysis Report

HOME DEPOT (HD): Free Stock Analysis Report

CHEVRON CORP (CVX): Free Stock Analysis Report

CONOCOPHILLIPS (COP): Free Stock Analysis Report

KINDER MORGAN (KMI): Free Stock Analysis Report

OCCIDENTAL PET (OXY): Free Stock Analysis Report

PPL CORP (PPL): Free Stock Analysis Report

DUKE ENERGY CP (DUK): Free Stock Analysis Report

EDISON INTL (EIX): Free Stock Analysis Report

SOUTHERN CO (SO): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.

In This Story

WMT COP KMI CVX HD

Other Topics

US Markets

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More