U.S. Movers: Interactive Brokers, JB Hunt, Morgan Stanley, Procter & Gamble, United Airlines

Scott Peters
18 Oct, 2023
New York City

Benchmark indexes were under pressure after Treasury yields resumed their advance and earnings season gathered momentum.  

The S&P 500 index decreased 0.2% to 4,364.92 and the Nasdaq Composite fell 0.4% to 13,515.26. 

The yield on 2-year Treasury notes decreased to 5.20%, 10-year Treasury notes inched higher to 4.88% and 30-year Treasury bonds edged up to 4.97%. 

Crude oil increased $1.25 to $87.86 a barrel and natural gas prices rose 7 cents to $3.15 a thermal unit. 

United Airlines Holdings Inc dropped 5.1% to $37.65 after the international airline forecasted weak performance in the current quarter largely because of expensive fuel. 

Revenue in  the Atlantic region was up 15% from a year ago, and 70% compared to the quarter in 2019. Pacific  revenue exceeded third-quarter 2019 levels despite capacity remaining 24% below third-quarter 2019, said the company in an update to investors. 

The company also added profits in the Atlantic and Pacific regions were at record highs and domestic profits were the second-highest  

Revenue in the third quarter rose 12.5% to $14.5 billion from $12.9 billion and net income advanced 20% to $1.1 billion from $942 million and diluted earnings per share rose to $3.42 from $2.86 a year ago. 

Morgan Stanley decreased 4.6% to $77.60 despite the financial services provider reporting higher-than-expected quarterly sales and earnings but revenue in wealth management unit disappointed investors. 

Revenue in the third quarter increased to $13.2 billion from $12.98 billion and net income rose to $2.40 billion from $2.63 billion and diluted earnings per share dropped to $1.38 from $1.47 a year ago. 

Net revenue in the wealth management unit rose to $6.4 billion from $6..1 billion but net new assets inflow dropped to $35.7 billion from $64.7 billion a year ago. 

The company repurchased 17 million of its own shares at an average price of $87.59 or $1.5 billion and the board of directors declared 85 cents a share dividend payable on November 15 to shareholders on record on October 31. 

Procter & Gamble Co increased 1.2% to $148.0 after the consumer goods maker reported the fiscal first quarter 2024 earnings that surpassed estimates set by some analysts. 

Revenue in the latest quarter increased 6% to $21.9 billion from $20.6 billion and and net income rose 15% to $4.5 billion from $3.9 billion and diluted earnings per share advanced to $1.83 from $1.57 a year ago. 

Sales in the quarter were driven by 1% decline in volume and 7% increase in prices.  

P&G guided sales in the fiscal 2024 to increase between 2% and 4% and diluted earnings per share to rise between 6% and 9% and fall between $6.25 and $6.43. 

J B Hunt Transport Services Inc declined 3.6% to $188.80 after the logistics and transportation services provider reported quarterly earnings that fell short of market expectations.

Revenue in the third quarter declined 18% to $3.16 billion from $3.83 billion and net income fell to $187.4 million from $269.4 million and diluted earnings per share dropped to $1.80 from $2.57 a year ago. 

Current quarter total operating revenue, excluding fuel surcharge revenue, decreased 15% from the comparable quarter 2022. 

This decrease was primarily driven by a 14% and 22% decrease in Intermodal and truckload revenue per load (excluding fuel surcharge revenue) respectively, a 38% decrease in volume in Integrated Capacity Solutions, a 20% decrease in final mile services, and a 1% decline in average revenue producing trucks in dedicated contract services, partially offset by a 1% increase in intermodal volumes and a 6% increase in truckload loads compared to a year ago.

Interactive Brokers Group, Inc dropped 4.5% to $82.51 after the online institutional brokerage service provider reported adjusted earnings and revenues that fell below market's expectations. 

Revenue in the third quarter increased to $1.2 billion from $790 million and net income rose to $167 million from $99 million and diluted earnings per share advanced to $1.56 from 97 cents a year ago. 

Net interest income increased 55% to $733 million, reflecting higher benchmark interest rates and customer credit balances. 

Commission revenue rose 4% to $333 million, driven by 18% increase in options contract volume while futures contract and stock trading volumes down 1% and 22% respectively.