Categories: world

S&P 500 nudges lower than industrial drag

By Sinéad Carew NEW YORK (Reuters) – The S&P 500 closed just barely lower on Thursday, as a dive in industrial stocks and concerns about slowing global growth eclipsed gains in Facebook and Microsoft. The industrial sector fell 1.99% with hefty drags from 3M, United Parcel Service Inc and Raytheon Co after they reported disappointing results. Fedex Corp also slumped after UPS's profit miss. Amazon.com Inc shares were 1.7% after the market closed after the company reported a first-quarter profit, which is close to estimates, although its second-quarter revenue forecast was largely below expectations. Intel Corp shares fell 7% after the chip maker forecasts current quarterly sales analysts estimates But shares of Facebook Inc. and Microsoft Corp. both jumped, rising 5.8% and 3.3%, respectively, after they reported better-than- expected results. "Sentiment is fluctuating as a result of mixed messages from earnings and data. We're going to continue to see fluctuations because we're likely to continue to see mixed messages," said Kristina Hooper, chief global market strategist at Invesco in New York. She also cited high U.S. Jobless claims and an unexpected shrinking of the South Korean economy. While expectations for aggregate S&P first-quarter earnings improved, investors kept a wary eye on future reports, said Lindsey Bell, investment strategist at CFRA Research in New York. [19659008""Second-quarterestimatescontinuetobereducedThat'scountingalotofcautionThat'scomingfromcorporatemanagementteamsastheyprovideguidanceandthemarketisfollowingtheirlead"Bellsaid"We'restillinawait-and-seemoderegardingtheeconomysonobody'swillingtogoalloutinthemarketrightnowespeciallywithvaluationsatapremium" The S&P 500 has rallied 17% so far this year, rebounding from a late -2018 accidentally, on a US-China trade deal, the Federal Reserve's move to pause interest rate hikes and better-than-expected earnings reports. The…

By Sinéad Carew

NEW YORK (Reuters) – The S&P 500 closed just barely lower on Thursday, as a dive in industrial stocks and concerns about slowing global growth eclipsed gains in Facebook and Microsoft.

The industrial sector fell 1.99% with hefty drags from 3M, United Parcel Service Inc and Raytheon Co after they reported disappointing results. Fedex Corp also slumped after UPS’s profit miss.

Amazon.com Inc shares were 1.7% after the market closed after the company reported a first-quarter profit, which is close to estimates, although its second-quarter revenue forecast was largely below expectations. Intel Corp shares fell 7% after the chip maker forecasts current quarterly sales analysts estimates

But shares of Facebook Inc. and Microsoft Corp. both jumped, rising 5.8% and 3.3%, respectively, after they reported better-than- expected results.

“Sentiment is fluctuating as a result of mixed messages from earnings and data. We’re going to continue to see fluctuations because we’re likely to continue to see mixed messages,” said Kristina Hooper, chief global market strategist at Invesco in New York. She also cited high U.S. Jobless claims and an unexpected shrinking of the South Korean economy.

While expectations for aggregate S&P first-quarter earnings improved, investors kept a wary eye on future reports, said Lindsey Bell, investment strategist at CFRA Research in New York. [19659008″”Second-quarterestimatescontinuetobereducedThat’scountingalotofcautionThat’scomingfromcorporatemanagementteamsastheyprovideguidanceandthemarketisfollowingtheirlead”Bellsaid”We’restillinawait-and-seemoderegardingtheeconomysonobody’swillingtogoalloutinthemarketrightnowespeciallywithvaluationsatapremium”

The S&P 500 has rallied 17% so far this year, rebounding from a late -2018 accidentally, on a US-China trade deal, the Federal Reserve’s move to pause interest rate hikes and better-than-expected earnings reports.

The index ended the day 0.5% below its late September record high. The Dow Jones Industrial Average fell 134.97 points, or 0.51%, to 26.462.08, the S&P 500 lost 1.08 points, or 0.04%, to 2.926.17, and the Nasdaq Composite added 16.67 points, or 0.21%, to 8,118.68

Refinitive data through Thursday morning showed that Wall Street now expects S&P 500 first-quarter earnings to be level with the year-ago quarter, a sharp improvement from the 1.1% decline expected just on Wednesday, and better than the 2% fall expected at the start of April. Excluding energy, the growth rate would climb to 1.4%. Healthcare stocks rose 1.1%

But 3M fell almost 13% in its biggest one-day percentage drop in more than three decades, after the cut it is 2019 earnings view and announced plans to lay off 2,000 workers. It was the biggest decline since Oct. 19, 1987, when it dropped 20.3% in a broad market crash.

Xilinx Inc was the S & P’s biggest percentage of decliner falling 17.1% after the chipmaker’s quarterly gross margin fell short of estimates. The Philadelphia chip index dropped 1.8%

Declining issues outnumber the NYSE at a 1.80-to-1 ratio; on Nasdaq, a 1.47 to 1 ratio favored decliners

The S&P 500 posted 23 new 52-week highs and four new lows; the Nasdaq Composite recorded 56 new highs and 58 new lows.

Exchanges 6.64 billion shares changed hands, in line with the 6.64 billion average for the last 20 sessions.

(Reporting by Sinead Carew; Additional reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru; Editing by Jonathan Oatis and Leslie Adler) [19659020]
Source link

Share
Published by
Faela