Stock Market News for Jul 29, 2020

Benchmarks slipped into the negative territory on Tuesday as investors kept a close watch on a second coronavirus relief package in consideration by lawmakers, along with mixed second-quarter corporate earnings report.

The Dow Jones Industrial Average (DJI) fell 205.49 points or 0.8%, to close at 26,379.28 and the S&P 500 shed 20.97 points or 0.7% to close at of 3,218.44. The Nasdaq Composite Index closed at 10,402.09, shedding 134.18 points or 1.3%. The fear-gauge CBOE Volatility Index (VIX) increased 2.8%, to close at 25.44. Declining issues outnumbered advancing ones for 1.17-to-1 ratio on the NYSE and a 1.38-to-1 ratio on the Nasdaq favored decliners.

How Did the Benchmarks Perform?

On Tuesday, the tech-laden Nasdaq plunged as its heavyweights likeTesla, Inc. TSLA and NXP Semiconductors N.V. NXPI closed at least 4.1% lower. Stocks that had outperformed during the coronavirus outbreak especially due to online shopping and work-and-stay at home practices, gave up gains.

Of the 11 major S&P 500 sectors, three ended in the positive territory, whereas the real estate sector closed 2.1% higher for the session followed by consumer staples and utilities. The materials sector recorded a steep decline of 2.2% along with energy, technology and consumer discretionary that closed at least 1% lower.

Overall, the S&P 500 posted 18 new 52-week highs and no new lows, while the Nasdaq Composite recorded 37 new highs and 10 new lows.

Coronavirus Relief Package in Debate

The U.S. Senate Republicans’ nearly $1 trillion coronavirus relief package was in focus on Tuesday also. Negotiation is in progress with the Democrats over another fiscal stimulus bill as recent economic data suggested that resurgence in cases is stalling the U.S. economic recovery.

As per the new package in talks, the government would provide relief for jobless Americans, another round of direct payment to individuals of up to $1,200, and more Paycheck Protection Program to small business loan funds, and other provisions.

Consumer Confidence Falls in July

On Tuesday, the Conference Board reported that its consumer-confidence index fell in July to 92.6 from a revised reading of 98.3 in June and missed the consensus estimate of 96. The decline in consumer confidence points toward a rockier economic recovery as new coronavirus cases keep spiking in many U.S. states.

Mixed Q2 Earnings Report

On Tuesday, several big names brands reported second-quarter 2020 earnings and investors digested disappointing quarterly numbers from McDonald’s Corporation MCD and 3M Company MMM. Investors also brace for a big tech earnings report, with Apple and Amazon among the companies set to report later this week.

Pfizer Inc. PFE reported second-quarter 2020 adjusted earnings per share of 78 cents, which beats the Zacks Consensus Estimate of 64 cents. The pharmaceutical giant recorded revenues of $11.8 billion, which marginally missed the Zacks Consensus Estimate of $11.88 billion. Revenues declined 9% year over year hurt by business disruption and reduced doctor visits amid the coronavirus pandemic. The quarter in review has also witnessed net negative impact on revenues of approximately $500 million, or 4%, due to COVID-19. (Read More)

Shares of Pfizerthat carries a Zacks Rank #3 (Hold) ended 3.9% higher on Jul 28. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Additionally, Altria Group, Inc. MO reported second-quarter 2020 earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.06. However, revenues after deducting excise taxes slipped to $5,062 million missing the Zacks Consensus Estimate of $5,074 million. Revenues were hurt by softness in the smokeable products segment. Shares of Altria Group rose 0.9% on Tuesday. (Read More)

McDonald’s reported second-quarter 2020 adjusted earnings of 66 cents per share, which missed the consensus of 76 cents. The company also reported revenues of $3,761.5 million that beats the Zacks Consensus Estimate of $3,698 million. This downtrend can primarily be attributed to the coronavirus pandemic. At company-operated restaurants, revenues came in at $1,593.7 million, down 34% year over year. The company’s shares closed 2.5% lower for the day. (Read More)

The multinational conglomerate, 3M reported second quarter of 2020 earnings of $1.78 per share, surpassing the Zacks Consensus Estimate of $1.77. However, net sales came in at $7,176 million, lagging the Zacks Consensus Estimate of $7,269 million. The results suffered from the adverse impacts of organic sales decline and various woes related to the coronavirus pandemic. Shares of 3M declined 4.9% on Jul 28. (Read More)

Stocks that made Headline

Helmerich & Payne Incurs Narrower-Than-Expected Q3 Loss

Helmerich & Payne Inc. HP reported fiscal third-quarter 2020 adjusted loss of 34 cents per share, narrower than the Zacks Consensus Estimate of 67 cents. (Read More) 

C.H. Robinson Q2 Earnings Top Estimates, Decline Y/Y

C.H. Robinson Worldwide’s CHRW second-quarter 2020 earnings of $1.06 per share surpassed the Zacks Consensus Estimate of 54 cents. However, the bottom line declined 13.1% year over year. (Read More)

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