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)

COMMENTS

More Related News

Amazon shareholders support selling face recognition tech to police
Amazon shareholders support selling face recognition tech to police

Amazon on Wednesday confirmed that shareholders rejected proposals to prohibit sales of facial recognition technology to governments and study how it might threaten privacy or civil rights. The proposals voted down at Amazon's annual stockholders meeting were put forth by a group of shareholders but opposed by the board of directors. Seattle-based Amazon developed facial-recognition technology called Rekognition and sells it as part of its cloud services unit.

Amazon
Amazon's 'Lord of the Rings' TV Series Lands 'Game of Thrones' Writer-Producer as Consultant

Bryan Cogman is following up Westeros with a trip to Middle Earth.

At all-hands meeting Jeff Bezos tells employees he
At all-hands meeting Jeff Bezos tells employees he's 'very excited' about the auto industry

At an all-hands staff meeting in March, Bezos told employees that he's fascinated by the recent developments in the auto industry. Amazon's ownership stake in private companies shot up to almost $1.4 billion last quarter, marking the first time it crossed the $1 billion mark since disclosing that figure in 2015. At an all-hands staff meeting in March, Amazon AMZN CEO Jeff Bezos told employees that he's fascinated by the recent developments in the auto industry, adding that it was one of the main reasons why Amazon led a $700 million investment in electric vehicle start-up Rivian in February.

OK, this has to be a mistake: The $130 Instant Pot Aura is down to $59.95 on Amazon
OK, this has to be a mistake: The $130 Instant Pot Aura is down to $59.95 on Amazon

There are almost always decent Instant Pot deals available on Amazon. Then during big shopping events like Black Friday and Prime Day, the best deals of the year pop up and offer some truly terrific prices on the world's most popular multi-cookers. As good as Black Friday and Prime Day deals are though, we've never seen an Instant Pot sale like the one we just stumbled across on Amazon. The $130 Instant Pot 6 Qt Aura Multi-Use Programmable Multicooker is currently on sale for just $59.95 with free Prime delivery. That's a discount of more than 50%, which is completely unheard of with Instant Pots.There is no question that this deal will sell out, but you should order one even after...

Coordinated anti-Trump campaign emerges on Instagram: study
Coordinated anti-Trump campaign emerges on Instagram: study

The photo-sharing app Instagram, which is owned by Facebook, said it was investigating the report and had already removed some of the profiles it highlighted. Malign online attacks against Trump's opponents have been well documented, most notably in the 2016 presidential election campaign, when Russian trolls allegedly flooded social media sites to undermine the Democratic challenger Hillary Clinton. Italian analytics firm Ghost Data says https://ghostdata.io/report/GD_IGDJT05.pdf the U.S. president is now facing similar illicit tactics, albeit on a limited scale, with false profiles being created and coordinated online attacks organized to spread a virulent anti-Trump message.

Leave a Comment

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

Cancel reply

Comments

Top News: Economy

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