Stocks Decline Amid Earnings Reports and Economic Data

Strategic Insights -

Thursday's stock market session was marked by a decline in stocks as investors digested earnings reports and economic data, with the S&P 500, Dow Jones Industrial Average, and Nasdaq experiencing varying degrees of loss. The aluminum producer, Alcoa, was among the notable performers, with its shares falling despite narrowly beating earnings estimates. The company reported a 6.8% increase in revenue to $5.82 billion but missed forecasts. Meanwhile, Constellation Brands saw its adjusted earnings beat expectations, but its fiscal 2016 earnings guidance fell short of consensus. Bed, Bath & Beyond was the worst performer on the S&P 500, down over 5% after reporting an in-line fourth quarter and slower-than-expected comparable-store sales growth.

Key Takeaways:

  • Alcoa reported a 6.8% increase in revenue to $5.82 billion, but missed forecasts.
  • Constellation Brands' adjusted earnings beat expectations by a nickel, but its fiscal 2016 earnings guidance fell short of consensus.
  • Bed, Bath & Beyond was the worst performer on the S&P 500, down over 5% after reporting an in-line fourth quarter and slower-than-expected comparable-store sales growth.
  • Walgreens Boots Alliance climbed 2.6% after announcing strong first-quarter results, including earnings of $1.18 a share beating estimates by 23 cents and revenue rising 36% to $26.57 billion.
  • The Federal Reserve's minutes from its March meeting showed surprisingly divided stances on the timing of an interest rate hike.
  • Crude oil prices rebounded, with West Texas Intermediate climbing 1.4% to $51.13 a barrel.
  • The Energy Select Sector SPDR ETF (XLE) added 0.84%, while major oilers including Halliburton (HAL), Petrobras (PBR) and BP (BP) were higher.
  • Zynga's shares plummeted 15% on news of former CEO Don Mattrick's resignation and the return of founder and Chairman Mark Pincus as CEO.
  • LinkedIn's shares fell 0.7% after it agreed to buy Lynda.com, an online education company, in a deal valued at $1.5 billion.

Statistics:

  • The S&P 500 fell 0.17%.
  • The Dow Jones Industrial Average slipped 0.23%.
  • The Nasdaq climbed 0.28%.
  • Alcoa's revenue rose 6.8% to $5.82 billion.
  • Constellation Brands' adjusted earnings beat expectations by 5 cents a share.
  • Walgreens Boots Alliance's earnings beat estimates by 23 cents a share.
  • West Texas Intermediate crude oil prices climbed 1.4% to $51.13 a barrel.
  • The Energy Select Sector SPDR ETF (XLE) added 0.84%.
  • Zynga's shares fell 15%.

Sources:

  • TheStreet.com (http://www.thestreet.com)
  • Alcoa (AA)
  • Constellation Brands (STZ)
  • Bed, Bath & Beyond (BBBY)
  • Walgreens Boots Alliance (WBA)
  • The Federal Reserve
  • West Texas Intermediate
  • Energy Select Sector SPDR ETF (XLE)
  • Halliburton (HAL)
  • Petrobras (PBR)
  • BP (BP)
  • Zynga (ZNGA)
  • LinkedIn (LNKD)
  • Lynda.com
  • Altera (ALTR)
  • Intel (INTC)
  • Broadcom (BRCM)