Wall Street hit by weak earnings, Brexit concerns

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City  

By Sruthi Shankar

(Reuters) - U.S. stocks fell on Thursday as a batch of weak earnings and Brexit-related concerns sparked a sixth day of selling, with high-growth stocks such as Amazon.com Inc (AMZN.O) and Facebook Inc (FB.O) taking a hit.

Ten of the 11 major S&P sectors fell, with more than 1 percent losses in consumer discretionary (.SPLRCD), defensive real estate (.SPLRCR) and utilities (.SPLRCU) indexes.

Shares in the world's largest retailer Walmart Inc (WMT.N), which was up earlier after beating quarterly comparable sales estimates, reversed course to trade down 0.7 percent.

The results come in a big week for retail earnings, with department store operator Macy's Inc (M.N) raising its annual earnings forecast on Wednesday, signaling a strong holiday shopping season.

However, J.C. Penney Co Inc (JCP.N) slumped 9 percent after quarterly comparable-store sales fell short of analysts' estimates.

U.S. retail sales rebounded sharply in October as demand for motor vehicles and building materials surged. The Commerce Department said retail sales rose 0.8 percent last month, above the expected 0.5 percent rise.

"Market's choosing not to pick and spare (retail) numbers and most of the retailers are looking forward to the holiday season," said Rick Meckler, a partner at Cherry Lane Investments, New Vernon, New Jersey.

"But right now the focus is on rising interest rates and the potential for long-term trade disruptions with China."

Markets earlier got some relief following news that China had delivered a written response to U.S. trade demands ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping at the end of the month.

"Most people thought it would be resolved but it has dragged on and the optimism turned to pessimism," said Meckler.

U.S. stocks got off to a shaky start this month after a sharp selloff in October as investors weigh the prospect of rising interest rates, slowing global economy and trade tensions.

Political worries in Europe escalated after a series of resignations in British Prime Minister Theresa May's government threw into doubt her long-awaited Brexit agreement and reports of anti-euro comments from an Italian official.

At 10:07 a.m. ET the Dow Jones Industrial Average (.DJI) was down 134.87 points, or 0.54 percent, at 24,945.63, the S&P 500 (.SPX) was down 15.23 points, or 0.56 percent, at 2,686.35 and the Nasdaq Composite (.IXIC) was down 23.76 points, or 0.33 percent, at 7,112.64.

Cisco Systems Inc (CSCO.O) rose 3.3 percent after the network gear maker reported better-than-expected quarterly results, benefiting from demand for its routers and switches.

Apple Inc (AAPL.O) rose half a percent after five days of losses, helping the S&P technology index (.SPLRCT) gain 0.3 percent.

Facebook Inc (FB.O) dropped 1.4 percent. Hedge funds Tiger Global Management, Appaloosa LP and Soros Fund Management dissolved their stakes in the social media giant on Wednesday.

Amazon.com Inc (AMZN.O) fell 2.8 percent, pulling the S&P consumer discretionary index (.SPLRCD) down 2.08 percent.

KB Home (KBH.N) slumped 17 percent after the company cut fourth-quarter revenue forecast. Shares of other homebuilders including PulteGroup Inc (PHM.N), Toll Brothers Inc (TOL.N) and Lennar Corp (LEN.N) tumbled.

Declining issues outnumbered advancers for a 2.20-to-1 ratio on the NYSE and a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and 16 new lows, while the Nasdaq recorded 3 new highs and 91 new lows.

(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)


More Related News

School accuses mother of starting
School accuses mother of starting 'social media frenzy' after daughter is dress-coded for wearing head wrap

"I'm angry as hell that my daughter was not allowed to represent Black History Month," said the tearful New Jersey mom.

NY Gov. Cuomo deems losing 2nd Amazon HQ
NY Gov. Cuomo deems losing 2nd Amazon HQ 'greatest tragedy'

ALBANY, N.Y. (AP) - Gov. Andrew Cuomo says Amazon's backing out of a deal to put one of its second headquarters in New York City is the "greatest tragedy" he has seen since he's been in government.

Stamps.com Wipes Off 50% of Market Cap as Key USPS Deal Ends
Stamps.com Wipes Off 50% of Market Cap as Key USPS Deal Ends

Shares of Stamps dropped as much as 58 percent on Friday in New York, touching their lowest since August 2016 and wiping off $2 billion in market value. The company's commentary about aggressive pricing tactics employed by bigger rivals -- as well as new challenges from Amazon -- also weighed on shares

Amazon deal fallout: Alexandria Ocasio-Cortez making political enemies?
Amazon deal fallout: Alexandria Ocasio-Cortez making political enemies?

Washington Examiner commentary writer Becket Adams on the political fallout from Amazon pulling out of its deal in New York City and the other cities trying to woo the ecommerce giant.

New billboard blasts Ocasio-Cortez for driving Amazon out of NYC
New billboard blasts Ocasio-Cortez for driving Amazon out of NYC

Job Creators Network President Alfredo Ortiz discusses his company's new billboard, which slammed Rep. Alexandria Ocasio-Cortez (D-N.Y.) for helping to push Amazon out of New York City.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.