3 Stocks to Watch on Wednesday: Vertex Pharmaceuticals Incorporated (VRTX), CSX Corporation (CSX) and International Business Machines Corp. (IBM)

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CSX - 3 Stocks to Watch on Wednesday: Vertex Pharmaceuticals Incorporated (VRTX), CSX Corporation (CSX) and International Business Machines Corp. (IBM)

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Tuesday was a slightly better day for the broader markets in a session that also saw gold gain 0.7% and crude oil surge 0.8%. While the Dow Jones Industrial Average dropped by 0.3%, the S&P 500 Index was up marginally and the Nasdaq Composite hit new highs thanks to a 0.5% surge..

3 Stocks to Watch on Wednesday: Vertex Pharmaceuticals Incorporated (VRTX), CSX Corporation (CSX), International Business Machines Corp. (IBM)As we hit mid-week, earnings have reached full stride. Heading into Wednesday’s open, we look at reports from CSX Corporation (NASDAQ:CSX) and International Business Machines Corp. (NYSE:IBM) that have their stocks on the move. Meanwhile, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is making a monster double-digit move following an update on its cystic fibrosis drug.

Here’s what you need to know heading into Wednesday’s open.

Vertex Pharmaceuticals Incorporated (VRTX)

VRTX shares are hitting the roof after the company released some good news Tuesday regarding its cystic fibrosis drug.

The pharmaceutical company said yesterday that its treatment for cystic fibrosis, VX-440, improved a measure of lung function in patients with the condition by 9.6% or more, topping Wall Street’s hopes of efficacy.

The treatment consists of three drugs that were tested during two phase 2 clinical trials, as well as one phase 1 study. Vertex is testing several combinations of doses to determine the best treatment for those who suffer from cystic fibrosis.

Cystic fibrosis is an illness that causes a backlog of mucus in the lungs and other organs, causing infections, respiratory difficulties and more. About 75,000 people around the world suffer from genetic forms of the condition, and Vertex has developed medicine that targets about 30,000 of these people.

VRTX stock is up about 27% this morning.

CSX Corporation (CSX)

Shares of railroad operator CSX Corporation took a hit despite the company’s second-quarter earnings beat.

The transportation company posted a quarterly profit of $510 million, or 64 cents per share — an increase of 17% year-over-year, and 59 cents better than the consensus estimate. Revenues of $2.93 billion were an 8% improvement, and also cleared analysts’ bar of $2.85 billion. The company also announced an additional $500 million boost to its stock repurchase program.

CSX did absorb a restructuring charge to the tune of $122 million as the company laid off close to 1,000 managers in its first and second quarters.

What weighed on CSX shares, however, was guidance for the fiscal full year. The company said it expects adjusted EPS to improve by 25%, implying $1.12 per share in annual profits. Wall Street analysts were looking for $1.20 per share.

CSX stock is off by roughly 4% in Wednesday’s morning action.

International Business Machines Corp. (IBM)

International Business Machines kept its dubious streak alive last night.

IBM shares are off this morning following its Tuesday evening second-quarter earnings release. Profits of $2.97 per share were better than expected, topping the analyst consensus for also posted its quarterly earnings results yesterday.

Profit was better than expected at $2.97 per share, up 7% year-over-year and 23 cents higher than the consensus estimate of $2.74. However, revenues of $19.29 billion missed the mark, as the pros were looking for $19.46 billion. Worse still, the 4% decline on the top line marked the 21st consecutive quarter that IBM watched revenues drop on a year-over-year basis.

There were some bright spots. IBM’s cloud revenue, for instance — a worry point for some investors — was strong at $3.9 billion, a 15% increase year-over-year.

And the tech blue chip also reaffirmed its guidance for the rest of the year, predicting earnings of $13.80 per share on an adjusted basis. The figure is higher than the $13.68 per share expected by Wall Street analysts.

IBM stock is off 3% on Wednesday morning, which should extend the stock’s decline to about

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/3-stocks-to-watch-on-wednesday-vertex-pharmaceuticals-incorporated-vrtx-csx-corporation-csx-international-business-machines-corp-ibm/.

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