Wednesday's Stock Market Close: US Stocks Seesaw On 3Q Earnings

Stocks traded in a narrow range around the flat line Wednesday as investors attempted to digest mixed earnings results for the third quarter.

The Dow Jones Industrial Average closed 45 points higher at 26,833 while the Nasdaq Composite added 15 points to 8,119 and the S&P 500 gained 8 points to 3,004.

Volume on the New York Stock Exchange totaled 2.7 billion shares with 1,793 issues advancing and 1,146 declining. Climbing to new highs were 133 issues while 28 fell new lows

Snap (SNAP), Bank of America (BAC) and General Electric (GE) led the most actives.

Boeing ( BA) missed third-quarter predictions, reporting net profit of $1.16 billion or $2.05 a share compared with $2.36 billion or $4.07 a share in the third quarter of 2018. Total revenue was off 21% to $19.9 billion. Being forced to take the 737 Max out of service following two fatal crashes depressed earnings. The company expects the jets to return to service before the end of the year, pending regulatory approval.

“Our top priority remains the safe return to service of the 737 MAX, and we're making steady progress," said Boeing President and Chief Executive Officer Dennis Muilenburg.

General Dynamics ( GD) reported third-quarter net earnings of $913 million or $3.14 a share compared with $864 million or $2.89 a share in the year ago quarter. Revenue totaled $9.8 billion, up 7.3% from September 2018. Chairman and CEO Phebe Novakovic credited Gulfstream’s introduction of new models and defense contracts for the positive results.

Norfolk Southern ( NSC) reported third-quarter net income of $657 million or $2.49 a share on revenue of $2.8 billion. The results include a $32 million write-off of a receivable following a legal dispute. Income from railway operations totaled $1 billion, off $24 million from last year.

Eli Lilly ( LLY) reported third-quarter earnings Wednesday of $1.2 billion or $1.37 a share compared with $1.1 billion or $1.12 a share in the year ago quarter. Total revenue was up 3% to $5.4 billion.

British Prime Minister Boris Johnson awaited a decision by the European Union on a Brexit extension. Reports indicated the EU likely would put off the divorce from the United Kingdom until Jan. 31, giving Johnson time to call an election. It was unclear, however, whether opposition leaders would go along.

The House of Commons voted Tuesday to approve Johnson’s agreement with the EU but then balked at the three-day timetable for full approval, making it impossible for the U.K. to smoothly exit the economic alliance by the current Oct. 31 deadline.

China’s Ministry of Industry and Information Technology said Wednesday it expects industrial output to start improving in the fourth quarter and will meet full-year growth targets. Yuan Da, a spokesman for the National Development and Reform Commission, admitted, however, the economy is ending its high-growth phase as Beijing and Washington continue to work on a new trade agreement.

On global markets were mixed. The Hong Kong Hang Seng closed off 0.82% while Japan’s Nikkei 225 rose 0.34% and China’s Shanghai Composite dipped 0.43%. Australia’s S&P/ASX was virtually flat, up just 0.01%.

In Europe, London’s FTSE 100 closed up 0.67% and the German DAX added 0.34%. The French CAC 40 was off 0.08% and Stoxx Europe 600 finished up 0.11%.

The British pound was up 0.33% at $1.2916 while the euro added 0.07% at $1.1132. The dollar index was off 0.06%.

Oil futures were mixed. Crude oil added 3% to $55.82 while Brent crude 0,.21% to $61.04. Gold futures added $7.20 to $1,494.70 an ounce while silver gained 5 cents to $17.55 an ounce.

The U.S. Treasury note was flat with a yield of 1.763%. The 30-year note gained 1/32 to see its yield drop to 2.254%.