Stocks clawed out of negative territory and then traded little changed through Tuesday.
First, the scoreboard:
- Dow: 18,106.20, +68.23, (0.38%)
- S&P 500: 2,114.59, +5.67, (0.27%)
- Nasdaq: 5,058.32, -1.93, (-0.04%)
And now, the top stories on Tuesday:
- Twitter shares crashed by more than 22% in late trading after an earnings leak. Research firm Selerity tweeted the numbers ahead of the closing bell, when they had been scheduled to drop. The stock was halted, and then Twitter officially released the numbers, after which trading resumed and the stock tanked. Twitter’s numbers were ugly: revenues came in at$436 million, missing expectations for $US456 million, according to estimates from Bloomberg. The company also cut its revenue outlook for the second quarter to $US470-$US485 million, well below expectations for earnings of $US538.1 million. First quarter adjusted earnings came in at $US0.07, better than the $US0.04 that was expected.
- In economic data, home prices rose more than expected in February, according to the latest S&P/Case-Shiller home price index. Compared to the prior month, home prices rose 0.9%, and rose 5% compared to the prior year. Economists had forecast that home prices rose 0.7% month-over-month, and 4.7% year-over-year. “We think the housing market remains in recovery mode this year, albeit a modest and choppy one,” Barclays analysts wrote.
- Consumer confidence has softened due to higher gas prices and the ugly jobs report last month, according to the Conference Board. The Consumer Confidence Index for April reading came in at 95.2, below expectations for a climb to 102.2 from 101.3 in March. Last month, the index crushed expectations, beating the consensus forecast of 96.4.
- Shares of Endurance International Group, a cloud solutions provider, fell by as much as 27% after an independent research firm said the stock is worth zero. In a report, Gotham City said the company’s “40%-100%+ of reported profits” were “suspect,” adding that readers should not assume they are short the stock. In a statement to Business Insider, Endurance said the claims are baseless.
- Shares of The Container Store tanked by more than 17% in trading. After the market close on Monday, the storage company posted earnings that missed on the top and bottom line. “Our fourth quarter did not conclude according to early-in-the-quarter trends,” CEO Kip Tindell said in the earnings release.
- Coach shares fell by nearly 8% on Tuesday after the company reported a miss on sales and closures of North American stores. Sales in the region fell 24% to $US493 million, from $US648 million last year. Comparable store sales fell 23%. The company’s third quarter results beat on earnings but missed on revenues.
- Ford’s first-quarter earnings were a slight miss. The company posted EPS of $US0.23 per share (versus $US0.26 forecast) on revenues of $US33.9 billion. According to Ford CFO Bob Shanks, the miss was almost entirely due to differences in tax rates.