Stocks traded mixed today before a closing loss of 22 points to 27,001 on lighter trading volume. Earnings reports are coming fast and furious and so far, 85% of them are beating Wall Street estimates.
Bank of America reported better than expected earnings sending shares higher. While revenue was flat and net income was up 14% the numbers had to be adjusted for the ending of a joint venture merchant services agreement. All in all, it was a busy quarter for the bank as they became the #1 small business lender, #1 online bank, hit a record high for checking accounts, opened an office in Paris, France, and saw good growth in loans. Total deposits continued to grow and hit $1,375 trillion. News came out that even Warren Buffet applied to the Federal Reserve for permission to increase his current 9% ownership stake to over 10%.
United Airlines reported solid numbers with a 3% revenue gain and a jump in profits of 33%. Corporate and Leisure travel demand remains robust and fare hikes and cost controls contributed to much better than expected results despite airline having 14 737 MAX jets sitting on the tarmac. CEO Oscar “Big O” Munzo issued positive forward guidance. Shares shot higher on the news.
Trucking biggie JB Hunt reported Q3 results which saw a better than expected 7% revenue increase and a miss on profits as net income fell 5%. CEO John “Good Buddy” Roberts noted that progress in being made on the companies last mile initiative and overall volumes are up but that margins were pressured due to a competitive environment which resulted in lower spot market volumes. Shares were higher as investors liked the tone of the call.