Here's what happened on Wall Street Wednesday, Oct. 18.
The Dow Jones Industrial Average, S&P 500 and Nasdaq all closed at record highs, with a strong showing from IBM pushing the Dow well over the 23,000 mark.
The Dow closed the day up 0.7%, the S&P climbed 0.07% and the Nasdaq rose 0.1%.
NFL Acknowledges Responsibility to Media Partners, Will Not Force Players to Stand for Anthem
NFL Commissioner Roger Goodell told reporters that the NFL would not force the players to stand for the national anthem after meeting with a number of players in a closed-door meeting Tuesday.
Goodell said that he believes players should stand for the anthem, but he and the NFL are willing to work with players to address their grievances.
NFL viewership is down about 7.5% this season after also suffering a drop the previous one.
Theater Stocks Are Going to Have a Rough Q3
Analysts at B. Riley are bearish on theater stocks in the third quarter as lower revenue, box office concerns and the potential that Hollywood shrinks the amount of time movies stay in theaters weigh on ticket sales.
However, B. Riley analysts expect fortunes for AMC Entertainment (AMC) , Regal Entertainment (RGC) , Cinemark Holdings (CNK) , and The Marcus Corporation (MCS) to pick up in the fourth quarter and beyond.
Chipotle EPS Targets Slashed at Bank of America
Chipotle Mexican Grill (CMG) shares were down more than 2% after a note from Bank of America slashed the company's earnings targets in 2018 and 2019 on the back of "exorbitant" employee salaries.
"We are downgrading Chipotle to Underperform from Neutral as we believe, assuming no significant tax reform, that 2018 and 2019 consensus EPS needs to drop at least 10%," analyst Gregory Francort wrote. "We believe further gains from trimming hours will prove difficult, which limits the opportunity to get labor below 27% of sales, even if traffic recovers."
MGM Resorts Could See Near-Term EPS Pressure
Shares of MGM Resorts Int'l (MGM) were falling 1.36% Wednesday morning after analysts at Stifel downgraded the stock to "hold" from "buy," as the firm sees near-term EPS pressure while also saying there is no reason to believe that there are compelling growth catalysts on the horizon.
Long term, the firm does see benefits from the company's investment in Macau.
A Door Latch Problem Could Cause Doors on Ford F-Series Trucks to Open Unexpectedly
Ford (F) is recalling 1.3 million F-Series trucks due to a latch problem that could cause the vehicles' doors to open unexpectedly.
The F-Series is the best-selling vehicle in America and Ford estimates that the recall will cost the company $267 million.
Ford shares took a hit from their earlier highs in trading, but the stock was still in the green Wednesday morning.
Fears of Supply Chain Instability Are Overblown
Apple (AAPL) supply chain plays like Broadcom (AVGO) and Skyworks Solutions (SWKS) have been trading sideways in the third quarter thanks to trepidation surrounding the rollout of Apple's latest iPhones. These fears are overblown, according to Barclays analyst Blayne Curtis.
"We believe the worry is overblown as 1) suppliers have always been more conservative than AAPL analysts so the effect is smaller, 2) the real story is about IPX...assuming the phone sells (limited Android competition with no 3D sensing until 2H18 at the earliest), and 3) any initial supply constraints spill into Q1 with a better cycle for next year."
We'll be following these names to see how the market reacts to this note.
IBM Rises 6% Premarket
Shares of IBM (IBM) were up nearly 6% premarket after the legacy tech company reported a stronger-than-expected period, even as revenue dipped slightly for the 22nd consecutive quarter.
IBM reported revenue of $19.15 billion, yielding a profit of $3.30 per share, topping analysts' expectations of revenue of $18.61 billion for a profit of $3.28 per share.
"Management is focused in the right areas, but still has some work and must demonstrate this growth is sustainable," said Josh Olson, an analyst at Edward Jones, according to Reuters.
U.S. futures were in the green Wednesday ahead of the opening bell as markets look to build on the record-setting session from the Dow Jones Industrial Average.
Asian markets were once again showing strength, with the Hang Seng, Shanghai Composite and Nikkei all closing trading in the green. Ditto for Europe, where the DAX in Germany, CAC40 in France and the FTSE 100 in the U.K. were all trading higher with about four hours left in trading.
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