Snap Inc.'s stock falls about 16% after quarterly results
U.S. stocks struggled to gain traction in positive territory late Wednesday, as investors awaited updates on efforts to pass tax reform in Washington and as President Donald Trump toured Asia, highlighting lingering tensions with North Korea (http://www.marketwatch.com/story/trump-warns-north-korea-do-not-try-us-2017-11-07) in a speech. Some strategists and traders say future gains, after a series of repeated records in 2017, may be capped until a catalyst emerges.
What are the main benchmarks doing?
The Dow Jones Industrial Average , which rung up a fresh all-time closing high on Tuesday (http://www.marketwatch.com/story/us-stocks-regroup-for-another-bid-on-all-time-highs-2017-11-07), was up 15 points, or 0.1%, at 23,571, buoyed by shares of Johnson & Johnson(JNJ), Goldman Sachs Group Inc. (GS), and Wal-Mart Stores(WMT).
The S&P 500 index was up about 3 points, or 0.1%, at 2,593, supported by gains in consumer-staples stocks and technology shares. Meanwhile, the tech-oriented Nasdaq Composite Index was tipping 16 points, or 0.2%, higher at 6,783.
What was driving the market?
The three gauges are up between 16% and 26% for the year as of Tuesday's close, helped by factors such as an expanding U.S. economy, improving corporate profits and bets that the Trump administration, a year after he was elected into office, will deliver tax reform and other business-friendly measures.
See:Dow's 1-year gain since Trump's win is its biggest post-Election Day rise since 1945 (http://www.marketwatch.com/story/the-dows-one-year-gain-since-trumps-election-is-its-biggest-since-1945-2017-11-08)
What are strategists saying?
"We are still in a situation where you're looking at every position for the likelihood of tax reform happening, and I think that will be sort of the dominant headline over the next few weeks," said Ian Winer, head of the equities division at Wedbush Securities.
"People will decide whether they think it is going to happen or not," he said of the passage of any tax-reform bill.
Still, Winer said the current environment makes it difficult for investors to sell stocks.
"There is no alternative to stocks, central banks are still largely accommodative and in lieu of any of that changing, it is hard to come up with a compelling bear case" he said.
Colin Cieszynski, vice president of the Canadian Society of Technical Analysts, said Wednesday's moves may reflect a cooling off a market that has risen almost relentlessly on the back of a number of upbeat factors.
"Looks to me that tech stocks are leveling off and the market overall is leveling of and that's not unusual in earnings season because there are fewer big cap companies reporting,"
"I don't really see how this bull market gets derailed," said Maris Ogg, president at Tower Bridge Advisors. She said part of the expected longer-term driver is the "obvious durable recovery in Europe and because Europe is the same size of the U.S. in terms of economic activity, I would guess that next year looks a lot like this year," Ogg said.
Read:Here are the winners and losers of the tax plan, by income bracket (http://www.marketwatch.com/story/here-are-the-winners-and-losers-of-the-tax-plan-by-income-bracket-2017-11-03)
Opinion:Cutting corporate taxes is the best part of the Republican plan (http://www.marketwatch.com/story/cutting-corporate-taxes-is-the-best-part-of-the-republican-plan-2017-11-08)
Which stocks look like key movers?
Shares in Snapchat parent Snap Inc.(SNAP) fell 16% after the company posted disappointing quarterly results late Tuesday (http://www.marketwatch.com/story/snap-shares-fall-as-much-as-21-after-third-quarter-revenue-miss-2017-11-07) and discussed a redesign for its messaging app (http://www.marketwatch.com/story/snap-will-redesign-snapchat-to-make-it-easier-for-non-millennials-to-understand-2017-11-07). They had been down roughly 20%, but erased losses following reports that Chinese internet giant Tencent Holdings Ltd.(0700.HK) has established a 10% stake in Snap.
Shares in peer-to-peer lending company (http://www.marketwatch.com/story/lendingclub-shares-down-15-after-quarterly-revenue-miss-2017-11-07)LendingClub Corp.(LC) tumbled 19% after reporting a disappointing full-year earnings outlook late Tuesday.
iHeartMedia Inc. (IHRT), the biggest operator of radio stations in the U.S., reiterated doubts about its ability to remain a "going concern (http://www.marketwatch.com/story/iheartradio-parent-says-there-is-substantial-doubt-it-can-remain-a-going-concern-for-next-12-months-2017-11-08)" in its latest filing with the Securities and Exchange Commission. Its shares were down 2.3%.
Fossil Group Inc.(FOSL) shares tumbled 15% after the accessories seller (http://www.marketwatch.com/story/fossil-shares-fall-20-on-weak-outlook-2017-11-07)gave a disappointing outlook of its own late in the prior session
Take-Two Interactive Software Inc.(TTWO) climbed 13% after the producer of videogames boosted its outlook while reporting results late Tuesday (http://www.marketwatch.com/story/take-two-jumps-to-record-price-levels-despite-earnings-swinging-to-a-loss-2017-11-07).
Shares in health insurer (http://www.marketwatch.com/story/humana-stock-surges-3-on-q3-profit-beat-2017-11-08)Humana Inc.(HUM) disclosed in a filing with the Securities and Exchange Commission that third-quarter revenue fell 3.0% to $13.282 billion from $13.69 billion, just below the FactSet consensus of $13.325 billion. Shares of health-care company were down 5.5%.
Regeneron Pharmaceuticals Inc.(REGN) rose 2.5% after the biotechnology company reported third-quarter profit and revenue that rose above expectation (http://www.marketwatch.com/story/regenerons-stock-rallies-after-profit-and-sales-rise-above-expectations-2017-11-08)s.
Wendy's Co.(WEN) shares fell 4% after the fast-food chain reported third-quarter earnings and revenue that came in weaker than consensus (http://www.marketwatch.com/story/wendys-shares-fall-after-earnings-and-revenue-miss-2017-11-08).
MGM Resorts International(MGM) added 3.1% even as the company reported third-quarter profit that was below Wall Street expectations (http://www.marketwatch.com/story/shares-of-mgm-resorts-fall-after-company-reports-profit-below-expectations-2017-11-08).
What are other assets doing?
European stocks traded mostly lower (http://www.marketwatch.com/story/european-shares-face-2nd-straight-loss-as-banks-fall-2017-11-08), while Asian markets (http://www.marketwatch.com/story/hong-kong-edges-ahead-as-asian-markets-largely-pull-back-2017-11-07) largely closed with losses. Gold futures gained (http://www.marketwatch.com/story/gold-gets-a-small-lift-from-weaker-stocks-dollar-2017-11-08), oil futures (http://www.marketwatch.com/story/oil-heads-lower-ahead-of-us-government-update-on-crude-supply-and-production-2017-11-08) traded lower, and the ICE U.S. Dollar Index edged down (http://www.marketwatch.com/story/dollar-tilts-lower-on-tax-cut-uncertainty-2017-11-08).
(END) Dow Jones Newswires
November 08, 2017 13:56 ET (18:56 GMT)