Mixed results hindered S&P 500 and Nasdaq closing lower Thursday while the Dow remains in record territory for the seventh consecutive session.
From the top:
- Dow hovers in record territory
- MetLife and Prudential see sharp falls
Brewers, toys and leisure goods were among the leading groups that lifted the Dow keeping it in record territory up 9 points or +0.04%. Mixed earnings results enervated the S&P 500 and Nasdaq both ending lower -0.35% and -0.22% respectively.
- Dow 22,026 +0.04%
- S&P 500 2,472 -0.22%
- Nasdaq 6,340 -0.35%
- Russell 2000 1,405 -0.54%
- NYSE Composite 11,956 -0.19%
- Gold 1,274 -0.28%
- Oil WTI $51 -0.84%
- 10-Year Treasury Yield 2.22% -0.03%
MetLife and Prudential see declines
MetLife (-3.57%) and Prudential (-4.30%) both saw sharp declines as investors were less bullish on the stocks. The insurers reported second quarter earnings after close on Tuesday with MetLife, the US’ largest insurer beating expectations while Prudential did not.
MetLife’s revenue climbed $17.2bn up from $15.2bn over the same period topping analysts’ estimates of $17.1bn on strong underwriting and volume growth in US and around the world. Net income grew a considerable $838m, or 77 cents per share, up from $64 million, or 6 cents per share, for the same period last year.
MetLife spin-offs its historic life unit
MetLife is set to spin-off its life insurance unit on Friday. However, the unit called Brighthouse Financials posted a 5% decline in operating income. The spin-off which will focus on annuities will begin trading on Nasdaq on Monday. The financial services company year to date is up +22% compared with the S&P 500 +14%.
Prudential reported net income of $491m or $1.12 per share versus $921m or $2.04 per share for year-ago quarter. Its operating income rose to $919m, or $2.09 a share which was below analyst expectations for $2.70 a share.
This is compared with $829m, or $1.84 a share, a year earlier. Net income fell from $921m the prior year to $491m in net income due to significant items including an annual review of actuarial assumptions and the impact of market performance on annuities.