NEW YORK, August 4, 2017 /PRNewswire/ --
The U.S. equity market closed mixed on Thursday after the Wall Street Journal reported that Special Counsel Robert Mueller impaneled a grand jury in the Russia probe. The S&P 500 Index fell 0.22 percent, or 5.41 points, to 2,472.16 while the NASDAQ Composite lost 0.35 percent to 6340.34. The Dow Jones Industrial average continued its rally and closed 9.86 points higher. The index has already posted its seventh straight record close. Randy Frederick, Vice President of Trading and Derivatives at Charles Schwab, said in a CNBC report: "After the markets reach such a big milestone, it's typical to see what is known as technical consolidation." Under Armour Inc. (NYSE: UAA), Sprint Corp. (NYSE: S), Apple Inc. (NASDAQ: AAPL), Tesla Inc. (NASDAQ: TSLA), Fitbit Inc. (NYSE: FIT)
The stock market continues its momentum, as most of the companies reported better-than-expected earnings in the second quarter. On Wednesday, The Dow Jones climbed above 22,000 for the first time after Apple shares hit record all-time highs. Jack Ablin, CIO of BMO Private Bank stated, "I think the market has already adjusted. I kind of viewed tax reform as a call option that it really wasn't priced in, if we get it great. I think the market as we can see, survives and thrives without the benefit of pro-business policies," as reported by CNBC.
Under Armour, Inc. (NYSE: UAA) shares fell to a new 52-week low after the sports clothing company cut its sales forecast for the full year and announced a restructuring plan. The company now expects sales growth to be 9 to 11 percent, below its previous forecast of 11 to 12 percent growth. Under Armour reported second-quarter revenue of $1.088 billion on Tuesday, toppling analyst estimates of $1.077 billion. Earnings per share came at a loss of 3 cents, beating analyst projections of a loss of 6 cents. Share value fell over 8 percent on Tuesday. The company is facing more competition from its rivals Nike Inc. and Adidas AG. The company said it plans to cut about 2 percent of its global workforce, which is about 277 jobs.
Sprint Corporation (NYSE: S), the No.4 U.S. carrier, reported a quarterly profit for the first time in three years on Tuesday, sending the shares up over 11 percent on Tuesday. The telecom giant posted a net income of $206 million, or 5 cents per share, compared to a loss of $302 million, or 8 cents per share, in 2016. Analysts had expected a loss of 1 cent per share. Revenue rose 1.9 percent to $8.16 billion, compared to analyst expectations of $8.11 billion. The company said the better-than-expected financial results was aided by its cost cut program. Sprint said it cut nearly $370 million of services and selling, general and administrative expenses during the quarter and it expects to cut an additional $1.3 billion to $1.5 billion of those costs in fiscal 2017.
Apple, Inc. (NASDAQ: AAPL) jumped over 6 percent on Wednesday after the company announced better-than-expected financial results. The iPhone maker posted adjusted earnings of $1.67 per share, beating analyst estimates of $1.57 per share. Revenue rose 7.2 percent to $45.40 billion, compared with analyst projections of $44.89 billion. The demand for iPhone was still strong during the quarter. The tech giant said it shipped 41 million iPhones in the fiscal third quarter. Apple is expected to introduce the new iPhone as soon as September. The company now expects fourth-quarter revenue between $49 billion and $52 billion, with forecasted gross margins between 37.7 percent and 38 percent. Apple shares hit an all-time high of $159.75 on Wednesday, bringing its market capitalization to over $830 billion.
Tesla, Inc. (NASDAQ: TSLA) on Wednesday reported a loss that beat analyst expectations in the second quarter. Revenue jumped 120.5 percent to 2.79 billion in the second quarter, compared to $1.27 billion a year earlier. The company posted a loss of $1.33 a share. Analysts estimated a loss of 1.82 per share. The robust earnings results are due to higher deliveries of the Model S and Model X. Tesla shares jumped over 6 percent on Thursday. The company said its less-expensive Model 3 is on track to reach previously announced production targets.
Fitbit Inc. (NYSE: FIT) surged over 13 percent on Thursday after the company reported quarterly results that topped analyst estimates. The company sold 3.4 million devices, up 14% sequentially from the first quarter of 2017, and down 40% year-over-year from the second quarter of 2016. Three products that were released in the past year, Fitbit Charge 2, Fitbit Alta HR, and Fitbit Flex 2, account for 81% of revenue. Co-founder and CEO, James Park said: "Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales. We are executing according to our transition plan and have increased confidence in achieving our full year results."
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