The markets moved mostly higher again today as earnings season begins to steal focus. The Dow 30 was higher by 143, the S&P 500 gained 10, and the Nasdaq 100 added 3 points on the day.
Earnings will continue to be the major market focus each day at the open and close as companies begin to show how they are handling the new tax law as well as tariffs. Tech stocks as well as the banks have high expectations from Wall Street Analysts this quarter. Last quarter earnings rose 24% and the average estimates on the street have expectations at a lofty 20% this quarter.
Sector News
Consumer Staples (XLP ) was your leader today as that sector continues to move off lows. The sector is now higher by over 8% since hitting a low back in early May. Procter & Gamble (PG ), Coke (KO ), and Pepsi Co (PEP ) were your leaders today making up over 30% of the entire sector.
Financials (XLF ) held the markets back a little today as investors position for earnings which begin later this week. JP Morgan (JPM ) and Wells Fargo (WFC ) are first up to report.
Stock News:
Pepsi Co (PEP ) shares were higher by 4.75% today after reporting earnings that came in better than expected. Revenue growth also came as a pleasant surprise to Wall Street which helped the stock break out of a short, two week range.
Wynn Resorts (WYNN ) shares were higher by another 3% today as the company was upgraded to buy at Stifel Nicolaus. The analyst at that firm said that the recent pullback offered an interesting risk/reward trade on the popular casino operator.
Chipotle (CMG ) shares sold off 2% today following a downgrade from Mizuho. The analyst pointed out that the 80% price increase since the new CEO took over is aggressive considering their tight profit margins. He said that investors are pricing in an aggressive recovery in profit margins and sales. Chipotle currently operates at a 4% net profit margin.
Walgreens Boots Alliance (WBA ) shares sold off 1% on the day after yet another downgrade. Wall Street continues to focus on the recent purchase of PillPack by Amazon as a hit to future growth of Walgreens.
Pfizer (PFE ) officially responded to President Trumps tweet yesterday that the company was overcharging Americans by saying that prices have remained unchanged for the majority of drugs and even declined for others.
