US OPEN: Wall Street mixed amid a flurry of earnings reports

US indices launched today's session in mixed moods after a big sell-off in the previous session. Better than expected quarterly reports  from 3M, Caterpillar and Merck & Co eased slightly concerns over the spread of the coronavirus. Total death toll in the US surpassed 231K and total number of cases in California surpassed 900,000. Also, hopes for further stimulus faded after Senate Majority Leader adjourned the Senate until November 9th. This means that US stimulus bill will not be passed before the presidential elections. On the data front US manufactured durable goods orders jumped 1.9% month-over-month in September of 2020, well above market expectations of 0.5%. Orders rose for the 5th straight month, led by transport equipment. Meanwhile, Advanced Micro Devices and Microsoft are due to report after the market close.

 

Xilinx (XLNX.US) agreed to be bought by Advanced Micro Devices (AMD.US) for $35 billion in stock. Xilinx shareholders will receive 1.7234 share of AMD for each share owned, equal to $143 in cash. The deal is expected to close by the end of 2021. Xilinx rose over 15%, while AMD added over 2.5% in premarket trading.

 

Merck (MRK.US) stock rose 1.5% in premarket trading after the company reported better than expected quarterly results. Company earned $1.74 per share, 30 cents a share above estimates. Revenue also came in above expectations and the company lifted its full-year guidance. The drugmaker results received a boost from rising sales of its cancer drug Keytruda.

 

Caterpillar (CAT.US) reported quarterly profit of $1.34 per share, which  came in 16 cents a share above estimates.  Revenue also beat market estimates. However heavy equipment maker did not provide any forecasts, citing continued global economic uncertainty. The shares fell over 2% in premarket trading.

 

3M (MMM.US) reported quarterly earnings of $2.43 per share for its, compared to Wall Street estimates of $2.26 a share. Revenue also exceeded expectations. 3M expects sales to be flat to up low single digits in October, although it did not give any other guidance. 3M shares fell 1% in premarket trading.

 

AIG (AIG.US) stock rose 7% in extended trading  after the insurance company announced plans to separate its life and retirement business from AIG. “AIG’s executive management and Board believe a simplified corporate structure will unlock significant value for shareholders and other stakeholders,” the company said is a press release.

Twilio (TWLO.US) stock dropped 1% in extended trading  despite the fact that company posted better than expected third quarter earnings. The communications platform company reported earnings of 4 cents per share, which came 3 cents per share above analysts' forecasts. Revenue came in at $448.0 million, above market estimates of $409.9 million.

Chegg (CHGG.US)—  stock fell 4% after the market close despite its upbeat quarterly earnings and positive outlook. The online textbook company posted earnings of 17 cents per share on revenue of $154.0 million, while analysts' expected earnings of 10 cents per share on revenue of $143.7 million. In the third quarter number of subscribers increased by 69%. Chegg also provided strong fourth quarter and 2021 revenue guidance.