Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

U.S. Stocks Drop with Disappointing Earnings

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/17/2013 | 04:10pm CEST

By Kaitlyn Kiernan and Tomi Kilgore

As the government reopened after a 16-day shutdown, U.S. stocks dropped Thursday as investors turned their attention toward lackluster economic reports and earnings results from blue-chip companies.

The Dow Jones Industrial Average futures dropped 99 points, or 0.6%, to 15275. On Wednesday, the Dow rallied 206 points, or 1.4%, after Senate leaders reached an agreement to raise the debt ceiling and reopen the government. The House voted Thursday evening to pass the deal, which will reopen the government through Jan. 15 and extend the debt ceiling through Feb. 7. President Barack Obama signed the bill after midnight.

The S&P 500 index lost four points, or 0.2%, to 1718, with tech shares leading declines by seven of 10 industry sectors. The Nasdaq Composite Index shed seven points, or 0.2%, to 3832.

Growing expectations the turmoil in Washington would keep the Federal Reserve from paring back its bond purchases drove down the dollar and pushed up Treasury prices. European stocks eased.

"Generally speaking, we're going to get back to stock picking," said Dan McMahon, director of equity trading at Raymond James. "Now, it's all about earnings. We've got to get back to work."

Blue-chip International Business Machines slumped 7.5% after reporting third-quarter revenue that fell short of analyst expectations amid a sharp decline in hardware sales. Net profit, however, topped estimates.

Fellow Dow components Goldman Sachs Group and UnitedHealth Group also fell after reporting quarterly results. Goldman Sachs dropped after missing on revenue but topping earnings expectations, citing a period of slow client activity. UnitedHealth dropped after matching forecasts on earnings and falling shy on revenue.

Verizon Communications gained after beating on earnings on strong wireless subscriber growth. Shares of eBay fell after third-quarter revenue missed estimates and the online auctioneer provided a disappointing earnings outlook for the current quarter.

Despite Thursday's weakness, Mr. McMahon said it was difficult not to be optimistic, with the market trading close to all-time highs. "Any selloff will be somewhat muted," he said. "We'll likely continue to bump along, and trend higher" through year end.

Initial claims for jobless benefits in the latest week fell to 358,000 from the previous week's revised 373,000, compared with expectations of a drop to 330,000. The elevated level of claims continue to reflect processing delays in California.

Still on tap, the Philadelphia Federal Reserve's October index of manufacturing activity is seen slipping to 15 from September's 22.3. Data on housing starts, building permits and industrial production have been postponed until further notice due to the government shutdown.

The yield on the 10-year Treasury note fell to 2.624% from 2.669% late Wednesday. Yields move inversely to prices. The dollar fell below 98 yen, while the euro pushed above $1.37 to approach an eight-month high.

October gold futures rose 2.6% to $1,315. "The market was waiting for a selloff post the U.S. Congress deal which didn't happen, so some people are throwing in the towel on the short gold trade," traders on Citigroup's bullion desk said.

November crude-oil futures lost 1.2% to $101.11 a barrel.

"Economic data has been delayed, distorted and depressed by the shutdown and it will not be until early next year that we can get a clear picture of the fourth quarter," said Keith Wade, chief economist at Schroders, which has $388 billion in assets under management. "The risk of another political standoff will also weigh on Fed deliberations. As a result we would not expect tapering to begin until March next year, with the possibility it will be delayed until June."

European stock markets edged lower, failing to build on gains forged earlier this week. A lowered growth outlook by Germany's leading economic think tanks helped offset better-than-expected retail sales data out of the U.K.

The Stoxx Europe 600 eased 0.2%, Germany's DAX 30 index lost 0.7%, but in London, the FTSE 100 index added 0.3%.

Asian markets were mixed to mostly higher in the wake of the U.S.'s budget deal. Japan's Nikkei Stock Average rose 0.8% and Australia's S&P/ASX 200 gained 0.4%, while China's Shanghai Composite slipped 0.2%.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com and to Kaitlyn Kiernan at kaitlyn.kiernan@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
09:43a DNO ASA : fails to find oil in Oman Block 36, finds gas
09:35a SYMANTEC : SWIFT cyber-attack spreads, no sign of ME targets
09:22a QATARGAS OPERATING : Recognise Outstanding Employees and Long Serving Employees (29 May 2016)
09:22a PRESIDENT AT A MEETING WITH IRIB HEAD : IRIB’s heavy responsibility deepening trust
09:22a MINISTRY OF RURAL REHABILITATION AND DEVELOPMENT O : Implementation of 24 Uplift Projects in Panjshir
09:12a HONDA MOTOR : BC-CAR--Indy 500 Lineup_merged
09:12a KARDAN : Regulatory approval regarding sale of TBIF obtained
09:08a COAL INDIA : Q4 net profit at Rs.42479.30 mn
09:08a PNC INFRATECH : FY16 net profit at Rs.216 crore
09:08a S H KELKAR AND : Q4 net profit up 24.6%
Latest news
Advertisement
Hot News 
MAY 31 DEADLINE ALERT : GPM Reminds Investors of the Looming Deadline in the Class Action Lawsuit Against DS Healthcare Group, Inc.
K&C REIT : Sells Newbury, Berkshire Retail Site For GBP210,000
VOLVERE : Sees Profits Rise In 2015, Boosted By Shire Foods Sales
PURICORE : To Stop Selling ProduceFresh Until Registered As Pesticide
UBISENSE : Notice of AGM
Most Read News
12:22a AUSTRALIAN GREENS : Greens launch RenewQld – a multi-billion plan for thousands of clean-energy jobs across the state
05/28 CLONTARF ENERGY : Annual Results
05/28 NEWCASTLE GOLD : Completes Merger with Catalyst Copper
05/28 POWERFLUTE : Distribution of Annual Report
01:47a VODAFONE QATAR : recognises its top retail staff performers
Most recommended articles
01:06a ALPHABET : French finance minister rules out Google tax deal, more firms could be targeted
05/28DJSUBSCRIBERS : Covestro News Reported in April
05/28 A Late Push for the Dollar from Yellen Puts Bulls on Notice
05/28 WEEKLY TRADING FORECAST : NFPs, ECB and Aussie GDP to Combat Expected Slow Start
05/28DJSTOCKS : Philips Lighting Shares Jump on Market Debut -- WSJ