The markets traded mixed today as investors digested current and expected earnings from big names ahead. The Dow 30 closed lower on the day by 22, but the S&P 500 and Nasdaq 100 closed higher on the day by 3 and 47 respectively. Going forward earnings season will pick up pace next week and the week after before hitting a peak.
Semiconductors were one of the leading areas today as the sector got a boost from positive earnings reports from Lam Research (LRCX ) and Xilinx (XLNX ). Texas Instruments (TXN ) also reported positive earnings but guided lower for 2019 citing a continuing slowing in demand.
Consumer staples was a weak spot in the markets today thanks in part to pullbacks in Coca Cola (KO ) and Procter & Gamble (PG ) as investors respond to their comments in Davos about solving the plastic waste problem. Technical traders note the rejection of the 200 day moving average in the short term.
Transports fought off yesterday's declines, moving back into the 50 day moving average. The sector was helped today by strong earnings and performance from the airlines as a handful of them reported today.
Southwest Airlines (LUV ) shares shot higher today as the company reported earnings that came in better than expected ($1.17 vs. $1.08) along with revenues that were better than expected. Despite the government shutdown and a small hit to revenue the company offered higher guidance for 2019. Shares have now almost recovered all of their losses from the highs set in December.
American Airlines (AAL ) shares were higher today as well as the company reported earnings of $1.04 versus the streets expectations of $1.01 with revenues better than expected as well. The company also raised their guidance for 2019. Shares are still near their 52 week lows.
JetBlue (JBLU ) shares enjoyed a nice gain today as the company reported earnings that were better than expected ($0.50 vs. $0.43) with revenues and guidance mostly inline with analysts expectations. Shares have now erased more than hale of their December losses.