Here's what happened on Wall Street on Wednesday, Oct. 25.
The S&P 500 and Nasdaq traded in the red as earnings season continues to dictate the direction of markets. The Dow Jones Industrial Average also fell today but was able to rebound significantly from session lows.
The Nasdaq and S&P closed trading down 0.52% and 0.47%, respectively, in afternoon trading. The Dow was off 0.48%.
Apple Denies Reports of More Problems With iPhone X Technology
Apple denied reports that the facial recognition technology it prominently features in its upcoming iPhone X is facing technical issues ahead of its November 3 debut.
"Bloomberg's claim that Apple has reduced the accuracy spec for Face ID is completely false and we expect Face ID to be the new gold standard for facial authentication," a spokesperson told the Telegraph.
T-Mobile and Sprint are Convening Special Committees to Review Potential Merger
T-Mobile (TMUS) and Sprint (S) are convening special committees to review the details of a potential merger, sources told Reuters Wednesday. The two companies have been rumored to be exploring a merger for years, and that chatter has ramped up in recent weeks.
A deal between T-Mobile and Sprint could face potential hurdles from minority shareholders however as both of the companies are majority owned by much larger conglomerates Deutsche Telekom and SoftBank Group respectively.
Nike Shares Spike During Investor Day Presentation
Nike (NKE) shares were up more than 2% Wednesday afternoon following opening comments from CEO Mark Parker saying that the company expects digital revenue to double from 15% of sales to 30% over the next five years.
Nike noted that while live athletic programming represents only 2% of television programming overall, live sports account for about 50% of television-related conversations on Twitter (TWTR) .
Edmunds Expects U.S. Car Market to Soften in October
Car industry watcher Edmunds released a report Wednesday forecasting a 13.3% month-to-month decline in U.S. vehicle sales in October. The firm expects 1,317,738 vehicles to be sold this month for an adjusted annual rate of 17.6 million.
"A 17.6 million SAAR in October is expected to be the second highest monthly sales rate of 2017, so despite the year-over-year decline, the industry can still consider it a solid month," said Jessica Caldwell, Edmunds executive director of industry analysis. "We expect to see increasingly aggressive incentives offered on outgoing models through the end of the year as automakers look to build on this momentum, so car buyers can likely anticipate some door-buster deals this holiday season."
Nike Will Hold Its Annual Investor Day Today
Nike (NKE) shares were down nearly 1% ahead of the company's annual investor day conference at noon. Topics of discussion are sure to include the company's just-started apparel deal with the NBA and the health of its basketball sneaker segment.
Nike shares have declined nearly 9% year to date.
Apple Is Telling Suppliers to Decrease the Accuracy of iPhone X Facial Recognition Tech
Bloomberg reported that Apple (AAPL) is instructing suppliers to decrease the accuracy of the iPhone X's signature facial recognition technology as it seeks to get the phone to market on time.
Suppliers have found that making the technology work the way it is supposed to has been more difficult than expected. In response, Action Alerts PLUS holding Apple is telling them to make it just good enough so that the company can have enough ready for its scheduled November 3 debut.
GE Now Trades at 1/12 the Price of the Dow's Highest-Priced Security
General Electric (GE) is one of the Dow Jones Industrial Average's founding securities, but the dip in its stock price may lead to it being kicked off the index as the stock currently trades below an unofficial threshold when compared to the index's highest-priced security.
A rare earnings miss has Action Alerts PLUS holding GE trading at a 1-to-12 ratio to Boeing (BA) , which closed Tuesday's session at $266. The blue-chip index has an unofficial rule that the lowest-priced security should trade at no less than a tenth of the price of its highest-priced name.
Tomi Kilgore of MarketWatch argues however that a delisting could be a blessing in disguise for the struggling legacy industrial.
NAACP Issues Advisory Warning Against American Airlines
Citing multiple incidents in recent weeks, civil rights organization NAACP issued an advisory to African Americans warning them that flying American Airlines (AAL) could result in a bad flight.
"The NAACP for several months now has been monitoring a pattern of disturbing incidents reported by African-American passengers, specific to American Airlines. In light of these confrontations, we have today taken the action of issuing national advisory alerting travelers - especially African-Americans - to exercise caution, in that booking and boarding flights on American Airlines could subject them disrespectful, discriminatory or unsafe conditions."
Some of the incidents they cited include:
- An African-American man was forced off a flight because he responded to disrespectful and discriminatory comments from two unruly white passengers.
- An African-American woman was switched from first class to coach, while her white companion remained assigned to a first-class seat.
Tesla Solar Panels Are Online in Puerto Rico
A few weeks ago, Tesla (TSLA) CEO Elon Musk offered to help get power back on in Puerto Rico after the devastation from Hurricane Maria left the majority of the island powerless. Today, the company's solar panels and batteries are helping power a children's hospital in the territory's capital.
Coke and Boeing were Falling Premarket
Coca-Cola (KO) shares were down 0.6% ahead of the opening bell in spite of the food and beverage maker reporting a 1% growth in volume for both its juice and dairy products, leading to earnings of 50 cents per share, beating analyst estimates by a penny. Revenue for the period fell 15% to $9.08 billion, but was still also able to top estimates of $8.72 billion.
Meanwhile, Boeing (BA) also fell in spite of the company raising its full-year earnings and cash flow guidance. The planemaker did say it took a $329 million charge related to trouble with its KC-46 aerial refueling tanker.
U.S. stock futures contracts were all trading in the red before the opening bell Wednesday, Oct. 25, indicating that markets would be giving back some of the gains they made in the previous session.
Earnings will once again tell the tale Wednesday, with a bevy of big names set to release their quarterly results both before the market open and after the closing bell.
Alaska Air (ALK) , Anthem (ANTM) , Boeing (BA) , Coca-Cola (KO) , NASDAQ (NDAQ) , Nielsen (NLSN) , Sirius XM Radio (SIRI) , Visa (V) , and Walgreens Boots Alliance (WBA) are just some of the big names reporting before the market opens.
The Nikkei snapped a 16-session winning streak Wednesday, closing in the red for the first time in over three weeks. Meanwhile, the Shanghai Composite and Hang Seng in China closed the day up 0.26% and 0.53% respectively.
Stocks in Europe were struggling, with the FTSE 100 dropping 0.35% and the DAX in Germany declining 0.06% with about 4 hours left in trading.