Weak Earnings Weigh on U.S. Stocks
18 Julio 2019 - 9:10AM
Noticias Dow Jones
By Lauren Almeida and Anna Isaac
U.S. stocks fell Thursday after a string of disappointing
earnings sent shares of technology companies sliding.
The Dow Jones Industrial Average fell 69 points, or 0.2%, to
27150 shortly after the opening bell. The S&P 500 dropped 0.1%
and the Nasdaq Composite declined 0.3%.
With few major economic reports scheduled for release this week,
investors have turned their attention to corporate earnings, which
have shown U.S. companies on uneven footing.
Shares in Netflix fell 9.5% after the streaming giant said its
number of subscribers in the U.S. declined for the first time in
nearly a decade. The downbeat report sent shares of peer Roku,
which creates streaming-media devices, down 0.3%.
Shares of eBay rose 6.3% after the online marketplace raised its
profit outlook and notched better-than-expected quarterly results.
Meanwhile, Qualcomm dropped 0.7% after the European Union announced
a second antitrust fine against the telecommunications giant.
The Dow industrials fell Wednesday as the start of earnings
season exposed weaknesses in the growth outlook for some companies.
Microsoft is set to report second-quarter results later
Thursday.
In Europe, the benchmark Stoxx Europe 600 index was almost flat,
with declines in the technology and energy sectors offset by gains
in health care.
While the European economy is doing well, "it's more about
downside risk coming from trade wars combined with the everlasting
Brexit risk," said Jorge Garyao, global head of inflation strategy
at Société Générale. The trade tensions that are currently focused
on U.S.-China "could easily move into the eurozone," he said.
The U.K.'s FTSE 100 index traded down after the government
spending watchdog, the Office for Budget Responsibility, warned of
a recession lasting at least a year if Britain quits the European
Union without a deal. The report said that a no-deal Brexit could
cause the U.K. economy to shrink 2.1%.
In Asia, the Shanghai Composite Index fell 1%. Progress toward a
trade deal has stalled while the Trump administration determines
how to address Beijing's demands that it ease restrictions on
Huawei Technologies, people familiar with the talks said. No
face-to-face meetings have taken place or been scheduled since
President Trump and President Xi Jinping of China met last month in
Japan and agreed to resume talks.
"Markets don't seem to be taking the comments on trade tensions
very well," said Fritz Louw, a currency analyst for Mitsubishi UFJ
Financial Group. He added that investors are likely to see several
days of volatility as they await progress in talks between China
and the U.S.
The Nikkei 225 gauge dropped nearly 2% after Japan's exports
tumbled for the seventh straight month in June, hit by a sharp drop
in shipments of chip-making tools and automobile parts to
China.
The yield on the 10-year Treasury fell to 2.060 from 2.102% on
Wednesday, according to data from Factset. Yields fall when bond
prices rise. The WSJ Dollar Index, which measures the currency
against a basket of peers, was down less than 0.1%.
--Caitlin Ostroff contributed to this article.
Write to Lauren Almeida at lauren.almeida@wsj.com and Anna Isaac
at anna.isaac@wsj.com
(END) Dow Jones Newswires
July 18, 2019 09:55 ET (13:55 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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