Belfast Telegraph

UK Website Of The Year

US stocks close mostly lower

Published 21/10/2016

Phone companies were the biggest drag on the market
Phone companies were the biggest drag on the market

The major US stock indexes closed mostly lower on Friday, capping a day spent wavering between small gains and losses.

Phone companies were the biggest drag on the market following reports that AT&T was considering a deal to acquire the media conglomerate Time Warner. AT&T, Verizon, Sprint and T-Mobile US all fell.

Health care and energy stocks also took some losses, while consumer staples and technology companies held on to slight gains.

Investors continued to focus on corporate America, reviewing earnings from General Electric, McDonald's and other big companies. Earnings from banks and other financial companies have been mostly better than anticipated, which has helped boost that sector.

"We're seeing a lot better earnings come out of the financial sector in particular, and some good earnings come out of technology," said David Schiegoleit, managing director of investments at the Private Client Reserve at US Bank.

"That is reflected in some of the sector performance, but when you look at the market overall we're still being weighed down by energy."

The Dow Jones industrial average fell 16.64 points, or 0.1%, to 18,145.71. The Standard & Poor's 500 index slipped 0.18 points, or 0.01%, to 2,141.16. The Nasdaq composite index gained 15.57 points, or 0.3%, to 5,257.40.

The three indexes ended slightly higher for the week. The Dow is now up 4.1% for the year, while the S&P 500 is up 4.8%. The Nasdaq is up 5%.

Roughly two weeks into the third-quarter financial reporting period, earnings for companies in the S&P 500 are projected be down about 0.8% overall from a year ago, according to S&P Global Market Intelligence. That forecast is largely due to the energy sector, which has been hard hit by falling energy prices.

Several companies that reported results on Friday failed to impress investors.

General Electric slipped 9 cents to 28.98 dollars after the company said its latest quarterly sales fell more than anticipated due to weaker results from its lighting and transportation businesses. The industrial conglomerate also trimmed its revenue forecast for the year.

Skechers USA slumped 17.3% after the footwear maker reported disappointing results for the second quarter in a row. The stock fell 3.96 dollars to 18.98 dollars.

Others companies fared better.

McDonald's rose 33% after the world's biggest hamburger chain served up earnings and revenue that exceeded Wall Street's expectations. The stock added 3.36 dollars to 113.93 dollars.

Microsoft climbed 4.2% a day after the software giant posted a surprisingly high profit for its fiscal first quarter. The results help validate the company's increased focus on software and online services. The stock gained 2.41 dollars to 59.66 dollars, eclipsing its previous record close of 59.56 dollars set in December 1999.

After an early slide, crude oil prices recovered in afternoon trading. Benchmark US crude rose 22 cents to close at 50.85 dollars a barrel in New York. Brent crude, used to price international oils, gained 40 cents to close at 51.78 dollars a barrel in London.

The major stock indexes in Europe barely budged on Friday as investors increasingly factored in the likelihood of a US interest rate increase this year.

Germany's DAX rose 0.1%, while France's CAC 40 fell 0.1% lower. Britain's FTSE 100 also slipped 0.1%. Earlier in Asia, Japan's benchmark Nikkei 225 index lost 0.3%, while South Korea's Kospi lost 0.4%. Hong Kong's stock market was closed due to a typhoon.

Bond prices rose. The yield on the 10-year Treasury note fell to 1.74% from 1.76 late Thursday.

In currency markets, the dollar slipped to 103.85 yen from 103.95 on Thursday. The euro weakened to 1.0871 dollars from 1.0926 dollars.

AP

Press Association

Read More

From Belfast Telegraph