US Stock Market Overview – Stocks Slip Led Down by Nasdaq; McDonald’s Misses on Top and Bottom Line

Biogen surges on Alzheimer drug announcement
David Becker

 

Riskier assets eased, and US yields to edge lower, as the push and pull of earnings weighed on stock prices. US stocks were led down by the Nasdaq which was the worst-performing sector. The VIX volatility index moved nearly 4% higher as the S&P 500 slipped. Sectors were mixed, led down by technology shares, energy shares bucked the trend and moved higher. Biogen surged higher as the company decided to move forward with its Alzheimer’s drug. The shares surged 27%. UK lawmakers rejected the timetable for a Brexit which might lead to a general election. Stocks sold off following the announcement.

Brexit on the Back Bench

UK Lawmakers reject a timetable for Brexit deal legislation, and this means that the UK government has lost control of the process. There might even be a general election by the end of the year. While lawmakers Tuesday endorsed Prime Minister Boris Johnson’s Brexit deal, the timeline was too quick. This provides a huge amount of uncertainty within the markets, generating volatility. The question will also be whether the EU will vote on an additional extension.

McDonald’s Misses Expectations

McDonald’s missed on the bottom line as quarterly earnings fell short of estimates. Shares tumbled 5% weighing on the broader markets. The company reported earnings per share of $2.11 versus expectations that the company would earn $2.21. Revenue came in at $5.4 billion which also missed compared to expectations that the company would produce revenues of $5.5 billion. Global same-store sales came in at 5.9% versus 5.6% expected.

Biogen Surges as Company Reverses Course

Biogen stock surged on Tuesday as the company announced that it will seek regulatory approval early next year for an Alzheimer’s disease drug that had been considered a lost cause. The about-face surprised the markets which help buoy the shares. According to reports, the company took a closer look at study data that it didn’t have when its halted efforts in March. The new data indicated the drug did work in patients who received the highest dose.

Lyft Shares Surge on Financial Guidance

Lyft shares surged nearly 7% on Tuesday as the company now expects to be profitable a year ahead of analysts’ expectations. The projection for profitability by the end of 2021 is Lyft’s first public commitment regarding its timeline on the matter.

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