Dow Gains, Nasdaq Sinks as Investors Flock to Safe Havens

S&P 500 Gains and Losses Today

2 hr 22 min ago

Here are the S&P 500 stocks that gained and lost the most today, and the stories behind the market movers.

Dow Ekes Out Gains to Finish Week Higher

3 hr 10 min ago

The Dow Jones Industrial Average got a boost from two components’ better-than-expected earnings, helping the index overcome a drop in consumer sentiment and rise about 0.1%, or 39 points. The index finished the week 0.8% higher after gaining in all but one of the week’s trading sessions. 

UnitedHealth Group (UNH) shares gained 2.6% after it reported better-than-expected earnings and revenue for the third quarter. Revenue at its Optum health service unit rose 22% and sales at its healthcare benefits group increased 13%.

Travelers Companies (TRV) shares increased 2.2%, boosted by hopes the insurer can follow in competitor Progressive’s (PGR) footsteps and beat earnings expectations when it reports next week.

Chevron (CVX) shares rose 1.8% on a 4% surge in oil prices.

JPMorgan Chase (JPM) moved higher by 1.5% after its third-quarter earnings surpassed analysts’ expectations, boosted by a 30% year-over-year increase in interest income. 

Shares of Walgreens Boots Alliance (WBA) fell nearly 4% after its fourth-quarter earnings came in lower than analysts anticipated. 

Boeing (BA) shares dropped 3.3% after reports indicated it would expand its inspections of its 737 MAX jets as it investigates a previously-announced manufacturing defect, further adding to worries that the aircraft maker won’t meet its 2023 delivery goals.

The technology sector declined 1.5% on the session, with Intel (INTC) shares falling 2.4%, IBM (IBM) dropping 2%, and Microsoft (MSFT) and Apple (AAPL) each declining about 1%.

-Terry Lane

UnitedHealth Beats Profit, Sales Estimates; Shares Rise

3 hr 48 min ago

Shares of UnitedHealth Group (UNH) gained more than 2.5% Friday after the insurance and health services provider posted better-than-expected results and boosted its guidance.

UnitedHealth reported fiscal 2023 third-quarter earnings per share (EPS) of $6.56. Revenue advanced 14% to $92.4 billion. Both beat analysts’ expectations.

UnitedHealth’s medical care ratio, which measures the cost of claims versus premiums collected, was 82.3%, up from 81.6% a year earlier but down from 83.2% in the second quarter.

The company had warned in June about higher medical insurance payouts as those over the age of 65 were opting for more elective surgeries after putting them off during the COVID-19 pandemic.

-Bill McColl

Fear Index Jumps Amid Middle East Conflict

4 hr 6 min ago

The Cboe Volatility Index (VIX), a measure of investor sentiment often referred to as the “fear index,” jumped Friday as Israel prepared to launch a ground invasion of Gaza after days of bombardment. 

The index had risen 4 points from Thursday’s close by the early afternoon, its biggest intraday jump since several regional banks collapsed in March. The index briefly surpassed 20, the value under which markets are widely thought to be stable, before retreating to around 19 in the late afternoon. 

Gold Hastens Its Ascent

4 hr 50 min ago

Gold futures have been rising steadily since last Friday, but their ascent picked up steam Friday when prices climbed more than 3%, their biggest intraday increase since March’s regional banking crisis. 

Gold prices reached $1,943, a two-week high, Friday afternoon as Israel prepared a ground invasion of the Gaza Strip. Other historical safe havens, like Treasurys and the dollar, also posted modest gains Friday.

UAW Shifting Gears Strike Against Big Three

5 hr 17 min ago

The United Auto Workers (UAW) held off on expanding its strike on Friday, warning it will no longer be announcing strikes in advance and is prepared to launch surprise walkouts throughout the week.

The move marks a major shift from the UAW’s earlier strategy, in which the union announced strike expansions each Friday since the strike began on Sept. 15.

“We’re done waiting until Fridays to escalate our strike,” UAW President Shawn Fain said. “Moving forward, we will be calling out plans when we need to where we need to with little notice.”

-Naomi Buchanan

Midday Market Movers

5 hr 53 min ago

Oil companies: Shares of oil companies rose alongside oil prices after the U.S. imposed its first sanctions under an agreement with allies to cap Russian oil prices. ExxonMobil Corp. (XOM) shares rose more than 3% and Chevron Corp. (CVX) gained 2%. 

UnitedHealth Group Inc. (UNH): Shares of the health insurance giant rose more than 2% after it reported better-than-expected quarterly earnings and raised the lower end of its full-year earnings guidance. Medical costs, which the company had warned would rise this year and eat into earnings, came in under analysts’ estimates.

Progressive Corp. (PGR): The insurance company’s shares jumped more than 7% after it reported a 20% increase in net written and earned premiums last quarter, helping it beat Wall Street’s earnings estimates. Shares of competitor Allstate Corp. (ALL) also gained, rising 5%.

PNC Financial Services Group Inc. (PNC): The regional bank’s shares fell 3% after it said it would trim its workforce by about 4%. It estimates the layoffs will result in a $150 million one-time charge in the fourth quarter but save it $325 million next year. 

Cruise lines: Cruise operators were some of the S&P 500’s worst-performing stocks, as a jump in oil prices and slumping consumer sentiment threatened to both raise costs and lower demand. Norwegian Cruise Line Holdings Inc. (NCLH) shares fell 4% and Royal Caribbean Group (RCL) dropped 3%.

Consumer Sentiment Falls Further than Expected as Inflation Fears Worsen

6 hr 46 min ago

Americans are feeling increasingly pessimistic about the economy.

The preliminary Michigan Index of Consumer Sentiment for October showed sentiment declining 7.5% from last month to 63, below the 67.4 reading that analysts were expecting and down from the 68.1 in September.

Inflation continues to be a primary concern for consumers, wrote Joanne Hsu, director of the University of Michigan’s survey of consumers, as expectations for year-ahead inflation rose to 3.8% this month, up from the 3.2% in the prior month.

“Nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices,” Hsu wrote.

-Terry Lane

Oil Futures Surge on Price Cap Sanctions

7 hr 42 min ago

Oil futures rose more than 4% Friday morning after the Treasury Department imposed sanctions on two companies transporting Russian oil priced above the cap set by the U.S. and its allies last year.

A United Arab Emirates-based company and a Turkish company were both sanctioned for using U.S. service providers to move Russian oil priced at over $60 a barrel. They are the first companies to be sanctioned by the U.S. for violating the price cap.

West Texas Intermediate (WTI) crude oil continuous contracts rose to over $86 a barrel, while Brent crude contracts climbed to over $89 a barrel.

Oil prices have retreated slightly from the highs they reached in September as OPEC+ production cuts squeezed supply. Thursday’s sanctions raised concerns that a crackdown on Russian oil could further reduce global supply at a time when U.S. stockpiles are at multi-decade lows. 

UAW Spares Automakers From Expanded Strike

8 hr 17 min ago

The United Auto Workers (UAW) union said Friday morning it would not expand its strike against Detroit’s Big Three carmakers. 

The union has established a pattern of announcing labor actions every week on Friday mornings. This is the second week in a row the UAW has abstained from expanding its strike in its Friday announcement. 

Granted, more than 8,000 workers were unexpectedly called on Wednesday night to walk off the job at Ford’s massively profitable Kentucky Truck Plant. 

Shares of Ford (F) and General Motors (GM) were down 0.8% and 1.2%, respectively, Friday morning. Stellantis (STLA) shares were up 0.3%.

Citi’s Q3 Profit Rose On Revenue Growth, Expenses Remain High

8 hr 50 min ago

Citigroup’s (C) third-quarter profit rose more than expected as revenue grew at a faster clip, even though some of that growth was offset by higher expenses.

The bank’s net income rose to $3.5 billion or $1.63 per share. That’s up about 22% over the second quarter and a roughly 2% increase compared to the prior-year quarter. Revenues grew 9% compared to the same period last year, driven primarily by the company’s institutional client business.

Citi CEO Jane Fraser unveiled restructuring efforts in September to cut back on costs, including trimming layers of management and divesting certain business segments. Citi’s expenses for the quarter ended September were $13.51 billion, slightly lower from the prior quarter but up 6% year-over-year.

Citigroup shares were up 2% in early trading Friday. Still, they have lost about a third of their value since Fraser took over as CEO in March 2021.

-Mrinalini Krishna

JPMorgan Profit Rides the High Interest Rate Wave in the Third Quarter

9 hr 34 min ago

JPMorgan Chase’s (JPM) third-quarter profit jumped 35% year-over-year to $13.2 billion, or $4.33 per share, as rising rates boosted net interest income.

Higher rates mean greater interest income for banks, and JPMorgan’s net interest income—the difference between what it earns on loans and what it pays to customers for their deposits—rose to $22.9 billion. That’s up about 4% compared to the prior quarter and a roughly 30% ($17.6 billion) increase over the same period last year.

“Currently, U.S. consumers and businesses generally remain healthy, although, consumers are spending down their excess cash buffers,” said, JPMorgan Chairman and CEO Jaime Dimon. He cautioned that a tight…