The markets traded in a wide range yet again today as the Federal Reserve indicated that it would likely continue its plan to raise rates. Ultimately the markets closed the day mixed as earnings and economic news continues to shape the day-to-day movement overall. The Dow 30 closed lower on the day by 91 thanks mostly to IBM (NYSE: IBM). The S&P 500 closed flat, as did the Nasdaq 100.
Earnings will continue to be the focus as more names flood the street with their results. Analysts have been focused on revenues as higher rates eat into overall margins. So far nearly 90% of companies that have reported have beat expectations.
Sector News
The banking sector continued to do its part to form a bottom as it had another good day. Banking stocks are enjoying a small bounce off lows as they report earnings showing growth in almost all sectors of their business. Technical traders noted that prices are still below the 200-day moving average by a wide margin.
Oil was one of the weak areas today as inventory reports showed an increase in the overall US supply. Inventories rose by 6.5 million barrels last week. Analysts only expected an increase of 2.2 million barrels. Oil and energy stocks also took a hit on the news.
Stock News
Tesla (NASDAQ: TSLA) shares were back in the news today as the company continues to plow ahead with their Shanghai plant. The company was reportedly speeding up construction of a plant in China in response to the ongoing US-China trade war. In other news CEO Elon Musk indicated to the board that he would like to buy $20 million worth of shares in the next open trading window in what is seen as an effort to offset the fine Tesla had to pay the SEC.
United Continental (NYSE: UAL) shares popped today despite missing on earnings. The company reported revenue that was higher than expected with its best quarterly growth since 2010. The company also raised their full-year outlook which marks the third time this year. Deutsche Bank Analyst Michael Linenberg upgraded the stock along with other airlines. He has a 69% success rate with an average profit of 24% in the last year.
Teva Pharmaceuticals (NASDAQ: TEVA) shares sold off today on a Reuters report that Express Scripts will now add migraine drugs from competitors like Eli Lilly (NYSE: LLY) and exclude other medications made by Teva. This comes after a period of price negotiations from a handful of drug companies which appear to have worked more in favor of other names.