U.S. stocks fell Tuesday, with the S&P 500 posting its fifth day of losses. European stocks also opened lower, on ongoing concern about Brexit. The Dow Jones Industrial Average tumbled more than 400 points, or 1.63% to 25,904, the S&P 500 index declined 1.86% to 2,703, and the Nasdaq Composite Index lost 2.28% to 7,299.
Shares of Cadence Design Systems Inc. (CDNS, Financial) gained more than 8% Tuesday morning after the company posted third-quarter earnings of 49 cents per share on $532.47 million in revenue, reflecting 9.7% year-over-year growth. The company beat earnings estimates by 8 cents and revenue estimations by $16.02 million.
“Broad-based strength across our product lines enabled Cadence to achieve outstanding operating results for the third quarter,” said the company's CEO Lip-Bu Tan. “We also continued to innovate and launch new products, including the industry’s first silicon-proven, 7-nanometer long-reach 112G SerDes IP and the Tensilica® DNA 100 Processor IP targeted at deep neural-network applications.”
Looking ahead, for the fourth quarter of 2018, the company expects total revenue between $545 million and $555 million. Fourth quarter GAAP net income per diluted share is expected to be in the range of 27 to 29 cents. Net income per diluted share is expected to be in the range of 46 and 48 cents. For 2018, it expects total revenue in the range of $2.113 billion to $2.123 billion. On a GAAP basis, net income per diluted share for 2018 is expected to be in the range of $1.15 to $1.17, and non-GAAP net income per diluted share is projected to be between $1.80 and $1.82.
Gainers
• Mcdonald's Corp. (MCD, Financial)
• Verizon Communications Inc. (VZ, Financial)
• Ventas Inc. (VTR, Financial)
• United Technologies Corp. (UTX, Financial)
• Lennar Corp. (LEN, Financial)
Losers
• Caterpillar Inc. (CAT, Financial)
• DISH Network Corp. (DISH, Financial)”‹
• Waters Corp. (WAT, Financial)
• Wynn Resorts Ltd. (WYNN, Financial)
Markets
The main European stock markets traded lower. The U.K.'s FTSE 100 fell 1.61%, France's CAC 40 lost1.91%, Germany's Dax slid 2.42% and Spain's Ibex 35 slipped 0.98%.
In Asia, Japan's Nikkei 225 fell 2.67%, India’s BSE Sensex lost 0.84%, Hong Kong's Hang Seng tumbled 3.08% and China's Shanghai Composite dropped 2.26%.
Disclosure: The author holds no positions in any stocks mentioned.
