Stocks slipped into the red on Wednesday afternoon after a higher open, amid a slew of earnings reports and nothing major on the economic data calendar.
Around 1:57 p.m. ET, the Dow was down 27 points, the S&P 500 was down 4 points, and the Nasdaq was unchanged.
Stocks closed little changed on Monday and Tuesday, with the Dow gaining by less than 0.1% for a second straight day; something Deutsche Bank’s Jim Reid pointed out has happened just twice this year.
The Dow was closing in on the levels it was at before the sell-off in August.
Here’s a quick rundown of all the big earnings releases that crossed:
Coca-Cola‘s revenues fell nearly 5%, dented by the strong dollar. Net operating revenue fell to $11.43 billion from $11.98 billion ($11.54 expected). Boeing’s profits rose 25% during the quarter to $1.70 billion, or $2.47 per share. That was more than analysts had expected. Revenues rose 9% to $25.85 billion, and commercial plane deliveries rose 7% to 199. Biogen reported $2.8 billion in revenues, up 11% year-on-year. Also, 11% of its workforce will be laid off as part of a restructuring. More oil industry woes: Baker Hughes reported a 39% decline in revenues to $3.8 billion, and forecast that drilling activity in North America would decline as customers adapt to lower oil prices.
And then we got a deal: Western Digital is buying SanDisk for $19 billion, or $86.50 per share. As often happens with mergers, there will be “synergies” (read, job cuts) at Western Digital.
Valeant shares fell by as much as 30% after a short seller questioned whether the company was a “Pharmaceutical Enron“.
It’s Ferrari’s IPO day. Shares of the luxury sports car maker opened up $15, at $60, while its IPO had been priced at $52, the higher end of expectations. Its ticker is RACE, and it is listed under the New York Stock Exchange.