US STOCKS-Wall Street hit by weak earnings, Brexit concerns

Published 2018/11/15, 17:32
Updated 2018/11/15, 17:40
© Reuters.  US STOCKS-Wall Street hit by weak earnings, Brexit concerns

* J.C. Penney plunges after cutting annual sales forecast

* U.S. retail sales rise 0.8 pct in October

* Apple gains after five-day losing streak

* Indexes down: Dow 0.54 pct, S&P 0.56 pct, Nasdaq 0.33 pct

(Updates to open)

By Sruthi Shankar

Nov 15 (Reuters) - U.S. stocks fell on Thursday as a batch of weak earnings and Brexit-related concerns sparked a sixth day of selling, with high-growth stocks such as Amazon.com Inc AMZN.O and Facebook Inc FB.O taking a hit.

Ten of the 11 major S&P sectors fell, with more than 1 percent losses in consumer discretionary .SPLRCD , defensive real estate .SPLRCR and utilities .SPLRCU indexes.

Shares in the world's largest retailer Walmart (NYSE:WMT) Inc WMT.N , which was up earlier after beating quarterly comparable sales estimates, reversed course to trade down 0.7 percent. results come in a big week for retail earnings, with department store operator Macy's Inc M.N raising its annual earnings forecast on Wednesday, signaling a strong holiday shopping season.

However, J.C. Penney Co Inc JCP.N slumped 9 percent after quarterly comparable-store sales fell short of analysts' estimates. retail sales rebounded sharply in October as demand for motor vehicles and building materials surged. The Commerce Department said retail sales rose 0.8 percent last month, above the expected 0.5 percent rise. choosing not to pick and spare (retail) numbers and most of the retailers are looking forward to the holiday season," said Rick Meckler, a partner at Cherry Lane Investments, New Vernon, New Jersey.

"But right now the focus is on rising interest rates and the potential for long-term trade disruptions with China."

Markets earlier got some relief following news that China had delivered a written response to U.S. trade demands ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping at the end of the month. people thought it would be resolved but it has dragged on and the optimism turned to pessimism," said Meckler.

U.S. stocks got off to a shaky start this month after a sharp selloff in October as investors weigh the prospect of rising interest rates, slowing global economy and trade tensions.

Political worries in Europe escalated after a series of resignations in British Prime Minister Theresa May's government threw into doubt her long-awaited Brexit agreement and reports of anti-euro comments from an Italian official. 10:07 a.m. ET the Dow Jones Industrial Average .DJI was down 134.87 points, or 0.54 percent, at 24,945.63, the S&P 500 .SPX was down 15.23 points, or 0.56 percent, at 2,686.35 and the Nasdaq Composite .IXIC was down 23.76 points, or 0.33 percent, at 7,112.64.

Cisco Systems Inc CSCO.O rose 3.3 percent after the network gear maker reported better-than-expected quarterly results, benefiting from demand for its routers and switches. Inc AAPL.O rose half a percent after five days of losses, helping the S&P technology index .SPLRCT gain 0.3 percent.

Facebook Inc FB.O dropped 1.4 percent. Hedge funds Tiger Global Management, Appaloosa LP and Soros Fund Management dissolved their stakes in the social media giant on Wednesday.

Amazon.com Inc AMZN.O fell 2.8 percent, pulling the S&P consumer discretionary index .SPLRCD down 2.08 percent.

KB Home KBH.N slumped 17 percent after the company cut fourth-quarter revenue forecast. Shares of other homebuilders including PulteGroup Inc (NYSE:PHM) PHM.N , Toll Brothers Inc TOL.N and Lennar Corp (NYSE:LEN) LEN.N tumbled.

Declining issues outnumbered advancers for a 2.20-to-1 ratio on the NYSE and a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and 16 new lows, while the Nasdaq recorded 3 new highs and 91 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.