U.S. stocks were in the green on Friday as the Trump administration made advances in a trade agreement with China. The Dow Jones Industrial Average gained 0.64% to 26,977, the S&P 500 Index rose 0.43% to 3,023 and the Nasdaq Composite Index increased 0.65% to 8,238.
Some non-index stocks also posted gains. Shares of Lear Corp. (LEA, Financial) rose nearly 1.5% on Friday after the company announced third-quarter results. The company posted earnings of $3.54 per share on $4.83billion in revenue, topping earnings estimates by 37 cents and revenues expectations by $70 million.
"In the third quarter, we continued to face a challenging operating environment, with global industry production down 3% year over year," President and CEO Ray Scott said.
Core operating earnings were $338 million, or 7% of sales, compared to $399 million, or 8.2% of sales, in the prior-year quarter. In the Seating segment, margins and adjusted margins were 7.6% and 8.2% of sales, respectively. In the E-Systems division, margins and adjusted margins were 6.7% and 7.6% of sales.
Looking at the cash generation, the net cash provided by operating activities was $343 million, while the free cash flow was $193 million.
Moreover, the company repurchased 616,635 shares for a total of $76 million.
Looking ahead to full-year 2019, the company expects net sales between $19 billion and $19.5 billion. It also projects adjusted earnings before interest, taxes, depreciation and amortization of $1.72 billion and $1.82 billion, with a cash flow of $550 million to $650 million.
During the quarter ended June 30, Richard Pzena (Trades, Portfolio) boosted his stake by 47% to 3,834,303 shares and Ray Dalio (Trades, Portfolio) increased his holding by 8% to 12,465 shares. Paul Tudor Jones (Trades, Portfolio) established a new position with 8,074 shares. Joel Greenblatt (Trades, Portfolio) curbed his position by 67% to 41,260 shares.
Gainers
- Resmed Inc. (RMD, Financial) +12.8%
- Intel Corp. (INTC, Financial) +7.8%
- Freeport-McMoRan Inc. (FCX, Financial) +7.8%
- Phillips 66 (PSX, Financial) +4.7%
- Alaska Air Group Inc. (ALK, Financial) +3.7%
Losers
- Ventas Inc. (VTR, Financial) -8.8%
- Edison International (EIX, Financial) -8.4%
- Illumina Inc. (ILMN, Financial) -7.2%
- Albemarle Corp. (ALB, Financial) -6.5%
- Apache Corp. (APA, Financial) -5.7%
Global markets
The main European stock markets traded mostly in the green. The U.K.'s FTSE 100 slid 0.05%, France's CAC 40 gained 0.67%, Germany's Dax increased 0.17% and Spain's IBEX 35 rose 0.41%.
In Asia, Japan's Nikkei 225 gained 0.22%, India’s BSE Sensex rose 0.10%, Hong Kong's Hang Seng swelled 0.49% and China's Shanghai Composite advanced 0.48%.
Disclosure: The author holds no positions in any stocks mentioned.
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