Stocks closed mixed Tuesday amid positive housing data and as earnings reports continued to roll in. Netflix (NFLX) hit the Nasdaq, while Lockheed Martin (LMT) scored gains during the regular session, and Microsoft (MSFT) jumped big after hours.
The Dow Jones industrial average held a 0.1% gain, the S&P 500 gave up 0.1%, and the Nasdaq fell 0.4%. Volume was also mixed according to preliminary figures, running slightly lower on the NYSE, but higher on the Nasdaq vs. Monday.
Metal miners, movie-related stocks and oil drillers led the downside in the stock market today, as West Texas Intermediate crude prices slid 1.4% to $44.60 a barrel. Paper, solar and ship transport stocks advanced.
After the close, Microsoft jumped 3.5% on a fiscal Q4 earnings and sales beat. The business software titan and Xbox maker earned 69 cents a share on $22.6 billion in revenue, above views for 58 cents on $22.15 billion, respectively. It fell 1.6% during the regular session, ahead of the earnings report. Shares were 6% off their 52-week high, based on Tuesday's close.
Intuitive Surgical (ISRG), up fractionally in regular trading, jumped 5% in extended trading after its Q2 results also topped forecasts. At Tuesday's close, shares were in buy range from a 654.98 flat-base entry.
Netflix gapped down and sank 13% in heavy volume after reporting mixed Q2 results after the close Monday. Earnings topped views, but revenue and subscriber growth disappointed. Shares of the subscription streaming service fell below their 50-day line and are 35% off their 52-week high.
Super Micro Computer (SMCI) gapped down and plunged 28% to a two-year low in massive trade, after the server systems maker cut its fiscal Q4 earnings and sales guidance late Monday.
On the upside, Lockheed Martin settled for a 1% gain after soaring as much as 3% to a record best, then falling nearly 2% amid cash concerns as it waits on a government contract. The F-35 fighter jet maker reported Q2 earnings and revenue that topped views.
On the IBD 50, Facebook (FB) added 1% as it approached the top of a flat base with a 121. 18 buy point. Other gainers included fabless chipmaker Silicon Motion Technology (SIMO), up 3% to a new high, and New Oriental Education & Technology (EDU), which added nearly 2% in brisk trade.
In economic news, June housing starts rose 5% to an annualized rate of 1.189 million, beating forecasts for 1.17 million. Building permits climbed more than 1% to 1.153 million, ahead of views for 1.15 million.
Economic reports on tap for Wednesday include the Mortgage Bankers Association's weekly mortgage applications and the Energy Information Administration's weekly crude oil stockpiles data.
Earnings are due out from American Express (AXP), eBay (EBAY), Intel (INTC), Mattel (MAT) and Morgan Stanley (MS).
