Here Are 3 Hot Things to Know About Stocks Right Now
- The S&P 500 was down slightly on Wednesday, after ending the previous session just 14 points off its all-time high of 2,872.87 set on Jan. 26. The index has closed higher for four straight sessions.
- Tesla Inc. (TSLA) fell 0.9% as investors weighed news that founder and CEO Elon Musk was considering taking the electric vehicle company private.
- Walt Disney Co. (DIS) was down 0.6% after third-quarter earnings disappointed.
Wall Street Overview
Stocks traded lower on Wednesday, Aug. 8, as a push from strong corporate earnings was muted by continued trade tensions between the U.S. and China.
The Dow Jones Industrial Average fell 35 points, or 0.14%, to 25,593, the S&P 500 was down 0.08%, and the Nasdaq declined 0.04%. The broad-market S&P 500 closed Tuesday, Aug. 7, just 0.5% from the all-time high it reached it January.
Denting sentiment Wednesday was news that the U.S. would impose 25% tariffs on an additional $16 billion in Chinese imports on Aug. 23, a move that likely means its vow to push for levies on $200 billion worth of products from China in the fall is well ahead of schedule.
Tesla Inc. (TSLA) shares fell 0.9% on Wednesday, following the stock’s biggest one-day gain in nearly four years, as investors appeared to question founder and CEO Elon Musk’s $72 billion vow to take the electric vehicle company private.
Shares jumped 11% to close Tuesday at $379.57 after Musk tweeted he was considering taking Tesla private at $420 a share and had the funding to do so.
“As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders,” Musk said in a letter to staffers posted on Tesla’s blog page. “Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term.”
Walt Disney Co.’s (DIS) fiscal third-quarter results disappointed but Chairman and CEO Bob Iger promised investors a streaming service to rival Netflix Inc. (NFLX) .
Disney shares fell 0.6% early Wednesday.
Snap Inc. (SNAP) fell 4.8% on Wednesday after the social media company reported a narrower loss in the second quarter and higher revenue than analysts expected. But the company also reported a 2% sequential decline in daily active users, the first time in its history it reported a quarter-to-quarter decline in DAUs.
Papa John’s International Inc.’s (PZZA) second-quarter earnings missed analysts’ estimates and the pizza chain said same-store sales in North America would fall 7% to 10% this year because of recent media coverage. It also lowered its earnings forecast for full-year 2018. Shares fell 6.8%.
“Very inexcusable and irresponsible comments” by company founder and former CEO John Schnatter caused same-store sales in July to fall by about 10.5%, current CEO Steve Ritchie told analysts on Tuesday. Schnatter gave up his chairman post at Papa John’s after a Forbes story last month reported Schnatter used the N-word during a media training session in May.
Drugmaker Mylan NV (MYL) said Wednesday its board was “actively evaluating” alternatives. Shares slumped 7.7%.
The news release didn’t specify the options being explored. The board hasn’t set a timeframe for the strategic review.
CVS Health Corp. (CVS) posted second-quarter adjusted earnings of $1.69 a share, beating estimates of $1.61. The company raised the low end of its guidance for 2018 to $6.98 to $7.08 a share from its previous outlook of $6.87 to $7.08. Shares rose 3.5%.