Stocks opened little changed as investors digested both the State of the Union address and a multitude of earnings reports. The averages moved in a narrow range throughout the day and failed to gain any momentum in either direction. There was little in the way of a catalyst from the economic calendar and the market drifted into the close with investors preparing for another heavy load of earnings data.
ECONOMIC EVENTS: In the U.S., the trade deficit narrowed 11.5% to $49.3B in November as exports dipped 0.6% and imports dropped 2.9%. Weekly DOE inventory data showed a 1.26M barrel rise in crude supplies.
COMPANY NEWS: Shares of Disney (DIS) slid 1% following last night's earnings report from the Dow member. Analysts at Morgan Stanley and Loop Capital, who each kept their Buy-equivalent ratings on Disney following the report, highlighted the doubling of ESPN+ subscriptions to 2M ahead of the launch of the company's competitor to Netflix (NFLX), dubbed Disney+, later this year.
General Motors (GM) shares rose 1.5% after the automaker reported better than expected earnings and revenue. However, GM also sounded a note of near-term caution, warning that it sees the first quarter being its weakest quarter of 2019.
Shares of video game makers Electronic Arts (EA) and Take-Two Interactive (TTWO) were both sharply lower following their issuance of worse than expected near-term guidance.
Snap (SNAP) shares jumped 22% after the parent of Snapchat reported better than feared results, including daily average use that stabilized and ended a run of quarterly declines.
Meanwhile, J.C. Penney (JCP) shares fell 2% after the department store operator said it will shift its strategy away from home appliances toward apparel and other higher margin opportunities.
MAJOR MOVERS: Among the noteworthy gainers MacroGenics (MGNX), which skyrocketed 130% after it reported that its Phase 3 SOPHIA study of margetuximab met its primary endpoint. Also higher were Plantronics (PLT) and Skyworks (SWKS), which gained a respective 20% and 11.5% after reporting quarterly results.
Among the notable losers was Fossil Group (FOSL), which fell 10% after Capri Holdings (CPRI), the parent of Michael Kors, highlighted weakness in watches during its fiscal Q3 earnings call. Shares of Capri closed 11% higher following its Q3 report. Also lower was Arlo Technologies (ARLO), which plunged 49% after reporting quarterly results and giving much worse than anticipated guidance.
INDEXES: The Dow fell 21.22, or 0.08% to 25,390.30, the Nasdaq lost 26.80, or 0.36%, to 7,375.28, and the S&P 500 declined 21.22, or 0.08%, to 25,390.30.
