NEW YORK, Oct 24 — US stocks edged higher yesterday as investors shrugged off lackluster quarterly reports from industrial bellwethers Boeing Co and Caterpillar Inc , though a lower-than-expected revenue outlook from Texas Instruments Inc sent chipmakers’ shares lower.
Shares of Boeing and Caterpillar rose more than 1 per cent despite significant earnings misses from both companies. Boeing reported a 53 per cent drop in quarterly profit but reaffirmed the timeline for its grounded 737 MAX’s return to service. Caterpillar’s Asian sales tumbled, but the company said tariffs stemming from the US-China trade war would have a smaller impact on its business than previously forecast.
With no new developments in trade relations, focus turned to earnings and other announcements from individual companies. Boeing and Caterpillar’s shares were resilient, several analysts said, because the companies’ slide in earnings was expected given the challenges they have faced throughout the year.
“Caterpillar has certainly been beset by trade war impact, so it wasn’t necessarily all that surprising,” said Shannon Saccocia, chief investment officer at Boston Private. “Boeing has had its own issues from the perspective of the 737 MAX.”
Texas Instruments shares, however, tumbled 7.5 per cent after the chipmaker projected fourth-quarter revenue below Wall Street estimates. The results sent shares of other semiconductor companies, including Intel Corp and Broadcom Inc , lower as well. The Philadelphia SE Semiconductor Index dropped 1.9 per cent.
The Dow Jones Industrial Average rose 45.85 points, or 0.17 per cent, to 26,833.95, the S&P 500 gained 8.53 points, or 0.28 per cent, to 3,004.52 and the Nasdaq Composite added 15.50 points, or 0.19 per cent, to 8,119.79.
Advances in Apple Inc and Facebook Inc shares helped buoy the major indexes.
Apple shares rose 1.3 per cent after Morgan Stanley said the iPhone maker’s soon-to-be-launched video streaming service, Apple TV+, could boost its services revenue.
Facebook shares advanced 2.1 per cent after Chief Executive Mark Zuckerberg sought to reassure US lawmakers about the company’s planned digital currency, Libra.
Nike Inc shares fell 3.4 per cent after the sportswear company announced late on Tuesday that Mark Parker, its long-time CEO, would step down next year. Nike tapped John Donahoe, chief executive of ServiceNow Inc, as Parker’s successor. ServiceNow shares fell 3.6 per cent.
Shares of medical device maker Boston Scientific Corp and laboratory equipment maker Thermo Fisher Scientific Inc jumped after both companies reported strong results. Boston Scientific shares ended 5.0 per cent higher and Thermo Fisher shares closed up 5.7 per cent.
Eli Lilly and Co shares, however, fell 2.2 per cent after the drugmaker missed third-quarter revenue estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored advancers.
The S&P 500 posted 22 new 52-week highs and one new low; the Nasdaq Composite recorded 52 new highs and 61 new lows.
Volume on US exchanges was 6.11 billion shares, compared to the 6.46 billion average for the full session over the last 20 trading days. — Reuters
Source: The Malay Mail Online