- Dow Jones higher, S&P 500 lower
- Energy stocks close lower after oil price drops
- Arconic share prices increase, J.B. Hunt closes lower
The most important stock markets in the US delivered mixed results yesterday. The Dow Jones Industrial Average closed slightly higher with a gain of 44.95 points or 0.18%, while the S&P 500 closed 2.88 points, or 0.10%, lower.
Financial stock prices escalated, with investors pondering long-term interest rates and earnings reports. The SPDR ETF ended the day 1.7% higher.
The prices of energy stocks dropped after the crude oil price nosedived by 4%. The SPDR S&P Oil & Gas Exploration & Production ETF dropped by 2.1%.
When it comes to individual stocks, Arconic traded 10.5% higher after rumors of a buyout and several solid business reports. On Friday, the Wall Street Journal reported that capital management firms such as Apollo Global Management, LLC, have approached the company.
Yesterday, Arconic announced a huge contract to supply Boeing with aluminum plate and sheet for all commercial aircraft models. In addition, the firm announced a two-year program with Lockheed Martin to work on developing advanced manufacturing processes such as 3D and metal printing, along with lightweight material systems.
The company also announced a new titanium alloy for high-temperature uses, such as jet engines, that is 50% lighter than current alloys.
J. B. Hunt, one of the biggest trucking firms in the US, reported results that far exceeded expectations. Its stock price surged 6.5% after the news but eventually closed 0.6% lower.
There was a 23.9% increase to $2.14bn in revenue, while earnings per share skyrocketed to $1.37 (+55.7%). The firm’s biggest segment, intermodal, saw revenues increase to $1.16bn (+16%), while operating incomes were 22% higher.
J. B. Hunt is experiencing increased costs for outsourced trucking and purchased rail along with escalating driver wages, but these costs have been more than offset by higher volumes, increases in customer rate, and rising truck counts.
