Market Overview

After-Hours Recap: Markets & Oil Fall, Earnings Have Stocks Moving After The Bell

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After a strong start to the week, stocks tumbled on Thursday. The European Central Bank left interest rates unchanged. Also weighing on the main U.S. stock indexes were a decline in oil prices and defensive sectors and several other earnings calls.

The S&P 500 Index lost 0.52 percent, with Alliance Data Systems Corporation (NYSE: ADS) and Freeport-McMoRan Inc (NYSE: FCX) having posted the largest declines.

The Dow Jones Industrial Average fell 0.63 percent. Among the biggest decliners were Travelers Companies Inc (NYSE: TRV) and Verizon Communications Inc. (NYSE: VZ), which fell after warning investors about the financial impact of an ongoing labor strike.

The Nasdaq 100 Index slipped 0.05 percent, partly driven by losses at Mattel, Inc. (NASDAQ: MAT) and Whole Foods Market, Inc. (NASDAQ: WFM).

On the other hand, there’s Viacom, Inc. (NASDAQ: VIAB), the largest gainer among the stocks included in the aforementioned indexes. The shares spiked 13.86 percent after the company announced a multi-year renewal of its carriage contract with DISH Network Corp (NASDAQ: DISH), which rose 1.43 percent on Thursday.

Earnings & After-Hours Movers

Shares of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) were trading down more than 4 percent in Thursday’s after-hours session, following the announcement of the company’s first quarter results. The tech giant reported earnings of $7.50 per share, $0.47 below the Street’s consensus. Revenue of $20.26 billion also came in $110 million under expectations. Management said a large responsible for the miss was a decline in ad prices.

In the morning, Under Armour Inc (NYSE: UA) posted earnings of $0.04 per share, $0.02 higher than the Street expected. Revenue of $1.05 billion also beat estimates by $30 million. Shares gained 6.8 percent.

Starbucks Corporation (NASDAQ: SBUX) delivered earnings of $0.39 per share, in line with the Street’s consensus. However, revenue of $4.99 billion missed expectations by $40 million. Shares were down more than 5 percent after the bell rang this afternoon.

Microsoft Corporation (NASDAQ: MSFT) was also down about 4.2 percent in Thursday’s after-hours session, after the company retrieved third quarter earnings of $0.62 per share, $0.02 below the Street’s consensus, on in-line revenue of $22.1 billion. Although sales met expectations, they fell 5.5 percent on a GAAP basis, driven by continued weakness in the PC market and currency headwinds.

Yet another decliner on Thursday’s after-hours session was Visa Inc (NYSE: V), which reported earnings of $0.68 per share, beating the Street’s consensus of $0.69 per share. Revenue of $3.63 billion also came in $30 million above expectations. However, the stock was tumbling as the company warned about weak global spending driven by “continued headwinds” of the U.S. dollar, depressed oil prices, and an "uneven" global economy.

Advanced Micro Devices, Inc. (NASDAQ: AMD) was up almost 23 percent after-hours. The small-cap tech company posted a net loss of $(0.12) per share, $0.01 slimmer than the Street expected, on revenue of $832 million, which beat estimates by $13.84 million. These results, added to a strong second quarter guidance, and the disclosure of a joint venture and licensing deal with Chinese firm THATIC, were helping the stock post such strong gains.

Among the stocks moving in after-hours on the back of their earnings calls were:

  • Skechers USA Inc (NYSE: SKX), up 6.75 percent
  • Boston Beer Co Inc (NYSE: SAM), down 10.2 percent
  • Norfolk Southern Corp. (NYSE: NSC), up 4.1 percent
  • Trinity Industries Inc (NYSE: TRN), down 3 percent
  • Hawaiian Holdings, Inc. (NASDAQ: HA), down 2.1 percent
  • E*TRADE Financial Corp (NASDAQ: ETFC), down 0.55 percent
  • Swift Transportation Co (NYSE: SWFT), up 0.75 percent
  • Southwestern Energy Company (NYSE: SWN), up 4.3 percent
  • Hanesbrands Inc. (NYSE: HBI), up 6.4 percent

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted-In: Earnings News Guidance After-Hours Center Movers

 

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