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Omar Venerio
Omar Venerio
Articles (1720) 

Wednesday Morning Market Highlights

Markets green, shares of Texas Instruments fall on quarterly results

US Markets

U.S. stocks were in the green on Wednesday morning. The Dow gained 0.37% to 28,412, the S&P 500 index rose 0.48% to 3,459 and the Nasdaq Composite Index was up 0.63% to 11,589.

Gainers

• Twitter Inc (NYSE:TWTR) +7.8%

• Avery Dennison Corp (NYSE:AVY) +5.2%

• Freeport-McMoRan Inc (NYSE:FCX) +2.4%

• Albemarle Corp (NYSE:ALB) +3.3%

• Carmax Inc (NYSE:KMX) +0.7%

Losers

• KeyCorp (NYSE:KEY) -4.7%

• Occidental Petroleum Corp (NYSE:OXY) -2.7%

• Union Pacific Corp (NYSE:UNP) -2.4%

• Marathon Petroleum Corp (NYSE:MPC) -0.3%

• Valero Energy Corp (NYSE:VLO) -0.7%

Global Markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 lost 1.35%, France's CAC 40 retreated 0.78%, Germany's Dax was down 0.58% and Spain's Ibex 35 fell 1.17%.

In Asia, Japan's Nikkei 225 gained 0.31%, India's BSE Sensex advanced 0.40%, Hong Kong's Hang Seng jumped 0.75% and China's Shanghai Composite was down 0.09%.

Texas Instruments releases earnings report

Shares of Texas Instruments Incorporated (NASDAQ:TXN) fell almost 4% on Wednesday morning after the company announced financial results for its third quarter of fiscal 2020. It posted earnings of $1.45 per share, beating analyst´s estimates by 17 cents, on revenue of $3.82 billion, which grew 1.3% year-over-year and also beat expectations by $370 million.

In the quarter, revenue rose 18% sequentially due to the strength in the rebound of automotive demand and growing demand for personal electronics.

In the core businesses, Analog revenue grew 18% and Embedded Processing grew 19% sequentially. Analog revenue grew 7% and Embedded Processing declined 10% when compared to the same quarter of the previous year.

The cash flow from operations was $5.8 billion for the trailing 12 months. Free cash flow for the same period was $5.2 billion and 38% of revenue.

Looking ahead to the fourth quarter, the company expects revenue between $3.41 billion and $3.69 billion and earnings per share in the range of $1.20 and $1.40.

At the end of September, the T Rowe Price Equity Income Fund (Trades, Portfolio) cut its investment in the stock by 3% to 1,260,000 shares.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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