As investors go over the most recent corporate results, U.S. stocks fell away from reaching record highs on Tuesday morning. The Dow Jones industrial average gained .1 percent, which did, however, take it past its record closing high.
After reaching a record high, the S&P 500 fell .1 percent. In the meantime, Nasdaq dropped to settle down .4 percent. At the day’s start, stocks opened broadly higher, but after the Federal Reserve Bank of Richmond announced its manufacturing activity index in the region dropped some 11 points in June, the excitement quickly started to fade and the prices either wavered or dropped slightly.
The pause or delay in action is no need for concern, according to experts. All three indexes have shown as much as a 19 percent increase for the year thus far, so the rally has not been halted. Many experts considered this week to be extremely significant and some call it the “earnings parade.” About 160 companies in the S&P 500 will release quarterly reports this week. The majority who have made announcements thus far have either met or exceeded the expectations of the analysts.
With varying results from the market, it is basically fair game at this point, experts indicate. McDonald’s shares sank as the fast food giant announced they expect to face a challenging second half of the year. However, Wendy’s, another fast food giant, reported earnings higher than anticipated and announced they plan to sell 425 of the company-owned restaurants.
After the market closes today, Apple and AT&T are set to announce their quarterly results. However, both are expected to show drops in quarterly profit, according to experts. On the brighter end of the spectrum, Cisco made the formal announcement that they plan to purchase Sourcefire, which is a cyber security company. The purchase is estimated to total about $2.7 billion.
With many companies showing improvement and meeting or exceeding expectations, the stock market is the place to watch in coming days. As the reports continue to flow in through the week, investors will be watching closely and ensuring they are making their moves at the appropriate times and with the right companies.
Another interesting stock to watch will be Lockheed Martin. Although the company saw a four-percent drop in its revenue for the second quarter, it saw net income rise about 10 percent, which was promising.
On another note, European markets were up by midday trading and Asian markets were closing out with some gains.
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