Reuters - U.S. stocks
declined modestly in a choppy session on Thursday as investors digested the
latest round of earnings, with telecoms suffering a sharp drop in the wake of
results from Verizon Communications.
Telecoms
.SPLRCL were down 1.9 percent, on track for their biggest percentage decline in
five weeks, as Verizon lost 2.7 percent. The company added fewer than expected
wireless subscribers in the third quarter and revenue fell short of
expectations.
But a 10.3
percent jump in AmEx (AXP.N) helped offset the decline after the credit card
issuer posted strong quarterly results and boosted its 2016 forecast. The gains
put the stock on track for its best day in over seven years and helped send the
financial sector higher for a third straight session.
Earnings from
Bank of New York Mellon (BK.N), up 4 percent to $42.05, also boosted
financials.
"Financials
for the most part since the earnings season started have been pretty solid, but
telecoms not, therefore they are dragging down the market," said Randy
Frederick, managing director of trading and derivatives for Charles Schwab in
Austin.
"It’s not
a big up day or a big down day – we’ve been up-and-down, up-and-down all
day."
Not all
financials were able to provide a lift. Property and casualty insurer Travelers
(TRV.N), dropped 6.1 percent after a steep drop in profit.
Thomson
Reuters data earlier this week showed earnings were now expected to show growth
for the quarter after companies in the S&P 500 began an earnings recession
in the third quarter of 2015. But with about 85 percent of S&P 500
companies left to report, there is still room for earnings to disappoint.
The Dow Jones
industrial average .DJI fell 16.88 points, or 0.09 percent, to 18,185.74, the
S&P 500 .SPX lost 2.39 points, or 0.11 percent, to 2,141.9 and the Nasdaq
Composite .IXIC dropped 7.62 points, or 0.15 percent, to 5,238.79.
The S&P
500 has struggled in recent sessions to climb above its technical resistance
level at the 100-day moving average, which currently stands at 2,142.60. The
level had acted as support for the index until it broke below the level last
week.
Healthcare
.SPXHC also served to curb declines, led by a 4.5 percent climb in Danaher
(DHR.N) after its quarterly results.
Declining
issues outnumbered advancing ones on the NYSE by a 1.48-to-1 ratio; on Nasdaq,
a 1.22-to-1 ratio favored decliners.
The S&P
500 posted 5 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 51
new highs and 54 new lows.
Reuters
Follow Solenzo Blog on
0 Comments