The Dow Jones Industrial Average fell on Wednesday after Caterpillar (CAT, Financial) and Boeing (BA, Financial) missed expectations for the quarter. The health (up 12.6%), commercial (up 9.8%) and tech (up 6.8%) sectors posted the strongest gains. The Dow Jones slid 0.45% to 27,225, the S&P 500 Index gained 0.05% to 3,007 and the Nasdaq Composite Index rose 0.28% to 8,274.
Shares of Snap Inc. (SNAP, Financial) gained more than 16% after announcing second-quarter results. The company posted a loss of 6 cents per share on $388.02 million in revenue, reflecting 48% growth from the prior-year quarter. The company beat earnings estimates by 3 cents and revenue expectations by $29.66 million.
“The growth in our community, engagement, and revenue is the result of several transitions we completed over the past 18 months,” CEO Evan Spiegel said. “We look forward to building on our momentum and making significant ongoing progress in each of these areas.”
During the quarter, the free cash flow increased by $131 million to -$103 million, the operating loss improved $53 million to -$305 million and the adjusted earnings before interest, taxes, depreciation and amortization increased $90 million to -$79 million compared to the prior year quarter.
Moreover, the number of daily active users increased 8% year over year to 203 million, up from 190 million in the prior quarter and 188 million a year ago. These users created over 3.5 billion new Snaps each day.
Looking ahead to the third quarter, the company expects revenue to be between $410 million and $435 million and adjusted earnings before interest, taxes, depreciation and amortization is expected to be between a loss of $85 million and a $60 million loss.
During the quarter ended March 31, Paul Tudor Jones (Trades, Portfolio) boosted his position by 64% to 379,117 shares, but Pioneer Investments (Trades, Portfolio) reduced its holding by 3.3% to 157,253 shares.
Gainers
- Edwards Lifesciences Corp. (EW, Financial) +8.4%
- United Parcel Service Inc. (UPS, Financial) +7.8%
- Texas Instruments Inc. (TXN, Financial) +7.3%
- Robert Half International Inc. (RHI, Financial) +6.7%
- Chipotle Mexican Grill Inc. (CMG, Financial) +6.2%
Losers
- Rollins Inc. (ROL, Financial) -10.8%
- Amphenol Corp. (APH, Financial) -5.6%
- FLIR Systems Inc. (FLIR, Financial) -5.1%”‹
- Caterpillar Inc. (CAT, Financial) -3.9%
- Harley-Davidson Inc. (HOG, Financial) -3.8%
Global markets
The main European stock markets were mixed. The U.K.'s FTSE 100 dipped 0.73%, France's CAC 40 slipped 0.22%, Germany's Dax gained 0.26% and Spain's IBEX 35 rose 0.52%.
In Asia, Japan's Nikkei 225 gained 0.41%, India’s BSE Sensex lost 0.36%, Hong Kong's Hang Seng advanced 0.20% and China's Shanghai Composite swelled 0.80%.
Disclosure: The author holds no positions in any stocks mentioned.
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