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Stock Market News For Nov 6, 2017

Benchmarks ended in the green on Friday on the back of strong earnings performance from Apple. Better-than-expected earnings results and favorable quarterly outlook from the tech giant led all the three key U.S. indexes to new record highs despite mixed jobs data. Additionally, the ISM services index hit its best level in more than twelve years, which in turn boosted the broader markets.

The Dow Jones Industrial Average (DJIA) increased 0.1%, to close at 23,539.19. The S&P 500 Index (INX) rose 0.3% to close at 2,587.84. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,764.44, gaining 0.7%. A total of 6.7 billion shares were traded on Friday, higher than the last 20-session average of 6.3 billion shares. Decliners outweighed advancers on the NYSE by a 1.09-to-1 ratio. On Nasdaq, a 1.02-to-1 ratio favored the declining issues. The CBOE VIX decreased 8% to close at 9.14.

The tech-heavy Nasdaq has closed at record highs for 63 trading days this year, marking its highest number of record closes in a year ever. Also, the Dow and the S&P 500 registered their fourth consecutive days of gains. For the week, the Dow and the S&P 500 posted their eight straight weeks of gains, their longest such winning stretch since November 2013. Further, the Nasdaq finished its six consecutive weeks of rise last week, its best such performance since early March of this year.

Apple Boosted the Benchmarks

Shares of Apple Inc. AAPL increased 2.6%, rising for the sixth straight session, on the back of upbeat fiscal fourth-quarter earnings results. The company’s quarterly earnings per share and revenues of $2.07 and $52.6 billion easily beat the Zacks Consensus Estimate of $1.87 and $51.2 billion, respectively. For the December quarter, the iPhone maker expects its revenue to remain in the range of $84 billion to $87 billion, which highlights a growth of 9% at the mid-point. (Read More: Apple Q4 Earnings Impress, iPhones & Services Lead)

In other news, Broadcom Limited AVGO is expected to attempt to acquire QUALCOMM Incorporated QCOM for around $100 billion or $70 per share. Following such news, QUALCOMM’s shares increased 12.7%, becoming the best performing stock of the S&P 500. Gains in Apple and QUALCOMM led the Technology Select Sector SPDR (XLK) to rise 0.79%, which was the second biggest gainer among the S&P 500 sectors.

Shares of DENTSPLY SIRONA Inc XRAY gained 6%, emerging as the best performer for the S&P 500 after posting bullish third quarter earnings results. DENTSPLY SIRONA holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Separately, the U.S. created 261,000 jobs in October, which came as a breather after only 18,000 job additions in September. Employment in key sectors like food services and drinking places, and professional and business services contributed to last month’s job creations.Employment in food services and drinking places created 89,000 jobs in October, after losing 98,000 jobs in September. Also, professional and business services added 50,000 jobs. However, October’s job additions were below the consensus estimate of 297,000 job additions.

Additionally, average hourly wages remained mostly flat in October, which came lower than the consensus estimate of a gain of 0.2%. Meanwhile, in October the unemployment rate came down from 4.2% to 4.1%, lower than the consensus expectation of 4.2%.

Moreover, the Institute for Supply Management reported that ISM Services Index increased from 59.8% to 60.1% in October, reaching its best settlement since Aug, 2005.

Weekly Roundup

For the week, the Dow, the S&P 500 and the Nasdaq gained 0.5%, 0.3% and 0.9%, respectively. Benchmarks closed in positive territory for the week after the Fed chose not to hike rates this month. Moreover, the Fed offered a positive view about the U.S. economy and said that it has been improving at a ‘solid rate.’ Also, House Republicans finally revealed a detailed framework for the new tax policy, which also boosted sentiments.

Additionally, upbeat earnings results also led the markets higher. As on Nov 3, 406 S&P 500 companies, which account for 85.4% of the index’s total market capitalization reported Q3 earnings. Total earnings for these companies are up +7.5% from the same period last year on +6.3% higher revenues, with 73.9% beating EPS estimates and 66.7% beating revenue estimates. (Read More: The Tech Sector's Impressive Earnings Power on Display)

Stocks That Made Headlines

CBS Corp Beats on Q3 Earnings, Sales Lag Estimates

CBS Corporation CBS posted third-quarter 2017 adjusted earnings per share that beat the Zacks Consensus Estimate. (Read More)

Starbucks Reports In-Line Q4 Earnings, Lowers Targets

Starbucks Corporation SBUX reported in-line earnings but failed to meet the Zacks Consensus Estimate for revenues in fourth-quarter fiscal 2017 results. (Read More)

EOG Resources Q3 Earnings Gain on Increased Volumes

EOG Resources Inc. EOG reported third-quarter 2017 adjusted earnings which beat the Zacks Consensus Estimate. (Read More)

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CBS Corporation (CBS): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Broadcom Limited (AVGO): Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
Starbucks Corporation (SBUX): Free Stock Analysis Report
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