Dow Slips for Fifth Day in Seven, Led Lower by IBM, Home Depot - TheStreet

By TheStreet Staff / October 18, 2018 / www.thestreet.com / Article Link

Here Are 3 Hot Things to Know About Stocks Right Now

The Dow Jones Industrial Average fell on Wednesday after shares of International Business Machines Corp. (IBM)  slumped as the tech giant posted a third-quarter revenue miss.Netflix Inc. (NFLX)  rose 3.3% after third-quarter subscriber growth beat analysts' expectations.Abbott Laboratories (ABT)  fell 1.6% after it trimmed the upper end of its full-year profit outlook as international sales were hit by a stronger U.S. dollar. 

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Wall Street Overview

Stocks fell on Wednesday, Oct. 17, following the biggest single-day surge on Wall Street in more than six months, as investors shifted their focus to U.S. corporate earnings season. 

International Business Machines Corp. (IBM)  tumbled by 7.6%, keeping the Dow Jones Industrial Average from making any significant moves into positive territory. The Dow fell 91 points, or 0.4%, to 25,706.68, the S&P 500 was little changed, sliding by 0.03%, and the Nasdaq also fell fractionally, by 0.04%.

Goldman Sachs Group Inc. (GS)  was the Dow's leading gainer on Wednesday. The investment bank's shares gained about 3% to $228.31

Netflix Inc. (NFLX)  rose 5.3% on Wednesday after third-quarter subscriber growth beat analysts' expectations.

The streaming giant said it added 1.09 million subscribers in the U.S. in the quarter and 5.87 million subscribers globally, well ahead of analyst's estimates of 674,000 U.S. additions and 4.46 million global adds.

Profit in the quarter was 89 cents a share on revenue of $4 billion. Analysts were calling for net income of 68 cents a share on revenue or $3.99 billion.

Netflix guided for 9.4 million net streaming additions in the fourth quarter, well above consensus estimates of 7.7 million.

Netflix Trounces Subscriber Estimates in Latest Earnings Report: 8 Key TakeawaysNetflix Surges After Q3 Earnings Blowout; Subscriber Additions Near 7 Million

IBM's third-quarter revenue fell 2.1% to $18.76 billion and missed forecasts of $19.1 billion. Adjusted earnings of $3.42 a share beat estimates by 2 cents.

IBM's Technology Services and Cloud Platforms group reported revenue of $8.3 billion, down 2% from a year earlier. Analysts were calling for revenue of $8.43 billion. The company's Cognitive Solutions segment, which includes solutions software and transaction processing software, reported quarterly revenue of $4.1 billion, down 6%.

Home Depot (HD) fell 4.4% to $185.12 after the retailer was downgraded by Credit Suisse, which cited the possibility that higher interest rates could affect the affordability of new homes.

IBM Slides After Revenue Miss as Turnaround Stalls

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Abbott Laboratories (ABT) posted third-quarter earnings largely in-line with analysts' forecasts, but trimmed the upper end of its full-year profit outlook as international sales were hit by a stronger U.S. dollar. Shares declined 1.1%.

Abbott Laboratories Posts Solid Q3 Earnings, Trims Full-Year Forecast

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Lam Research Corp. (LRCX) jumped 1.3% after the chip-equipment company forecast fiscal second-quarter adjusted earnings of $3.45 a share to $3.85 a share, above analysts' expectations of $3.29.

United Continental Holdings Inc. (UAL)  was up 6% after the U.S. carrier predicted 2018 adjusted earnings of between $8 and $8.75 a share. Analysts expected earnings of $8.15.

Tilray Inc. (TLRY)  was down 6.4% and Canopy Growth Corp. (CGC)  declined 4.6% after Canada became the first major economy to legalize recreational cannabis. Sales began early Wednesday.

Pot Stocks Get Routed on the Same Day Cannabis Is Legalized in CanadaCanopy Growth and 2 Other Pot Stocks to Buy as Canada Legalizes Cannabis

In U.S. economic data, housing starts fell 5.3% to a seasonally adjusted annual rate of 1.201 million units in September, the Commerce Department said.

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