#Huntington #Ingalls #Stock #Sinks #Shipbuilder #Cuts #Outlook
Key takeaways
- The S&P 500 fell 1.9% on Thursday, October 31, as evidence of major companies spending big money to build their own artificial intelligence platforms weighed on the technology sector.
- Huntington Ingalls shares sank after the military shipbuilder missed quarterly earnings estimates and cut its full-year sales forecast.
- A strong labor market helped deliver a strong quarter for Paycom Software, a provider of human resources and payroll services, and its shares rose.
Major US stock indexes never found a festive mood in the Halloween trading session, falling as investors digested massive spending plans by tech giants aiming to build artificial intelligence (AI) infrastructure.
The S&P 500 fell 1.9% on Thursday, while the Dow Jones fell 0.9%. The Nasdaq felt the biggest impact of a gloomy day in the technology sector, falling 2.8%.
The biggest decline in the S&P 500 hit shares of Huntington Ingalls Industries (HII), the largest US military shipbuilder, which sank 26.2%. Third-quarter revenue and earnings per share (EPS) fell short of analyst estimates, and Huntington Ingalls cut its full-year sales forecast. The company said uncertainty over agreements with the US Navy, as well as labor and supply chain issues, contributed to a weakening outlook for its shipbuilding business.
Estée Lauder (EL) shares fell 20.9% after the luxury beauty products company withdrew its full-year forecast and cut its dividend. The cosmetics company also reported year-over-year declines in quarterly revenue and organic sales, citing weakness in the travel markets in China and Asia. Estée Lauder also announced a change in its executive leadership, with Stephane de la Faverie set to take over as CEO at the beginning of next year.
Shares of automotive technology supplier Aptiv ( APTV ) fell 17.7% after the company reported third-quarter earnings. Production challenges in the auto industry, reduced customer scheduling, and bumps along the road to an electric vehicle (EV) future weighed on Aptiv’s performance. However, the company said it has adopted cost-cutting measures to adapt to the difficult environment.
Shares of Paycom Software (PAYC) rose significantly on Thursday, marking the highest daily performance in the S&P 500 with a gain of 21.3% despite what was a scary trading session for the broader technology sector. The payroll and human resources (HR) software company reported better-than-expected third-quarter sales and profits, as strength in the labor market helped boost demand for its employee management solutions.
Shares of Entergy ( ETR ) rose 15.2% after the Louisiana-based electric utility beat third-quarter earnings estimates and raised its full-year outlook. Cost cuts helped boost profits, even as revenue fell year-over-year, below expectations. Entergy also announced plans for a number of clean energy projects.
Pulp and paper products manufacturer International Paper (IP) beat earnings estimates with third-quarter results, and its shares rose 13.3%. International Paper also said it is in the early stages of reviewing strategic options for its global cellulose fiber business and announced it will close its plant in Georgetown, South Carolina.
#Huntington #Ingalls #Stock #Sinks #Shipbuilder #Cuts #Outlook
