Wall Street Overview
Equities rallied on Tuesday, December 18, recovering somewhat from Monday's fierce sell-off as investors struggled with slowing economic growth and heightened political uncertainty.
The Dow Jones Industrial Average rose 202 points or 0.86% to 23,795, the S & P 500 rose 0.59% and the Nasdaq rose 0.85%.
Investors on Tuesday looked to the Federal Reserve this week to help keep their nerves under one of the worst Decembers ever for US equities. Donald Trump again called on the Fed for the fourth time in a tweet on Tuesday not to raise interest rates.
I hope people in the Fed will read today's Wall Street Journal Editorial before they make another mistake. Do not let the market become more illiquid than it already is. Stop with the 50s. Feel the market, do not just go for pointless numbers. Good luck!
̵1; Donald J. Trump (@realDonaldTrump) December 18, 2018
Stocks fell on December 17, the Dow plummeted by 500 points and the S & P 500 fell 2.1%. That was the lowest since October 2017. Each of the three major stock indices lost 8% in the current month.
Boeing Co. (BA) pays a dividend of $ 2.055 per share, an increase of 20% over the previous value of payout and increased the volume of the share repurchase program by $ 2 billion to $ 20 billion. Boeing said it had purchased approximately $ 9 billion worth of shares under the previous plan and expects the buybacks to continue in January. Boeing said its dividend has risen by 325% and that share buybacks have reached 230 million over the past six years.
"We believe that shareholders will take a positive view of these messages, particularly with regard to the aggressive dividend increase that underlines this." Management's confidence in the business, "wrote the Credit Suisse analyst, noted that the buyback is lighter than expected for 2018, "represents a strong first quarter, especially as recent stock weakness persists."
Boeing rose 3.5% on Tuesday.
The Oracle Corp. (ORCL) fell slightly lower after previously trading higher in the session after the software company's adjusted earnings and earnings exceeded analysts' forecasts.
Adjusted earnings for the quarter were 80 cents and revenue was $ 9.56 billion. Analysts expected a profit of 78 cents on a turnover of 9.52 billion US dollars. Oracle said revenue from cloud services and license support was $ 6.65 billion for the quarter – analysts expected $ 6.63 billion.
Co-CEO Safra Catz expected a jump in earnings from 2% to 4%. in constant currency, with forex acting as headwind of 4%. This means that revenues in US dollars will fall to 2%, compared to a consensus of around 1%. The result is expected to be in the range of 83 cents to 85 cents per share, which equates to a consensus of 84 cents.
Oracle expects full-year revenue growth of approximately 3% at constant currency. [19659003Johnson&Johnson(JNJ)bestätigteamMontagseinePrognoseundsagteseinBoardgenehmigtedenRückkaufvonAktieninHöhevonbiszu5MilliardenUS-DollarnacheinemstarkenVerkaufderAktiendesPharma-undKonsumgüterriesennachBerichtenwonachdasWissenüberkrebserregendenAsbestbeiseinemikonischenBabyvertieftwurde
The company reaffirmed its revenue forecast for the full year of 81 billion US dollars to 81.4 billion US dollars and the profit forecast of 8.13 USD to 8.18 USD per share and said it would use the sell-out as an opportunity.
"Due to our continued strong performance and, above all, the confidence we place in our future business, the Board of Directors and the management team believe the company's shares represent an attractive investment ." Alex Gorsky, Chairman and CEO, said in a statement.
The stock rose 1.3%.
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Shares of the owner of Olive Garden and LongHorn Steakhouse increased by 4.2%.
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