Translate

Search This Blog

Search Tool




Apr 24, 2019

Wall Street Closing Report on Wednesday 24, April 2019 | S&P 500 slips from record close as Caterpillar and AT&T fall on earnings

Fred Imbert





Stocks slipped from record levels on Wednesday as Wall Street digested another batch of corporate earnings.
The Nasdaq Composite hit an intraday record before trading just below the flatline. The S&P 500 dipped 0.1% as the energy and communication sectors underperformed. The Dow Jones Industrial Average traded 49 points lower as Goldman Sachs fell on a report saying the Justice Department was pushing for a guilty plea in the bank’s case related to the 1MDB fund.
Caterpillar shares fell nearly 3% despite the company posting better-than-expected quarterly earnings. The industrial giant’s CFO warned of a possible slowdown in its China business, overshadowing Caterpillar’s strong report.
AT&T, meanwhile, fell more than 4% after posting first-quarter revenue numbers that disappointed investors. The company’s revenue was dragged down by weak sales in its WarnerMedia division.
Both the S&P 500 and Nasdaq posted record closing highs in the previous session, boosted by strong corporate earnings results from companies like United Technologies, Coca-Cola and Twitter on Tuesday.
The indexes reached records less than six months after a massive drop in December, which led to Wall Street’s worst year since the financial crisis. But a pivot by the Federal Reserve in monetary policy away from higher rates and the cooling of trade tensions between China and the U.S. helped stocks rally from those lows.
Technology led the comeback, rising more than 36% since Christmas Eve. Xerox is the best-performing stock in the sector since then, rising about 80%.
“Right now, it feels like there’s some FOMO [fear of missing out] going on,” said Christian Fromhertz, CEO of The Tribeca Trade Group. “That’s what’s pushing us up in this last leg.”
“I think we’re going to see a consolidation at some point,” he said. “It’s not to say we need a major pullback; I just think we need to consolidate the gains a little bit. That may happen with what comes out with some of the bigger tech names.”
New York, USA - May 8, 2018: Wall Street sign near New York Stock Exchange with flags of the United States. It is the world’s most significant financial center.
ymgerman | iStock Editorial | Getty Images
Facebook and Microsoft are among the companies set to report later on Wednesday, while Amazon is scheduled to release its results on Thursday.
Nearly 130 S&P 500 companies have reported calendar first-quarter earnings so far. Of those companies, 78% have reported better-than-forecast profits, according to Refinitiv.
“If there’s an earnings recession out there, it’s hard to see in the latest batch of earnings reports,” Ed Yardeni, president and chief investment strategist at Yardeni Research, wrote in a note.
Domino’s Pizza, meanwhile rose 6% on stronger-than-forecast quarterly results. Anthem and Biogen’s earnings also beat estimates.
—CNBC’s Sam Meredith contributed to this report.

Source CNBC

No comments:

Post a Comment