US equities retreat from record amid series of weak earnings

Asian indexes pulled up

The US stock market made a quick separation from its record highs earned in the previous session as Wall Street indices ended in the bearish territory on Wednesday after weak earnings report from major firms rattled investors.

The Dow Jones Industrial Average futures lost more than 110 points, or 0.5%, to settle at 23 329.46. On Tuesday, the blue chip index registered its 54th record close at 23 430, on the backs of strong earnings from Caterpillar Inc.

The 11 sector S&P 500 index suffered its biggest daily decline in more than a month after giving up 12 points, or 0.5% at 2 557.15, with all its sectors finishing in the negative zone.

The tech-heavy NASDAQ Composite index fell by the same percentage, amounting to 35 points, to finish at 6 563.89.

The earnings reports was still the biggest market mover yesterday, with the hospitality sector showing disappointing results.

The shares of Burrito provider Chipotle slid more than 5% to $324.30m, sending negative impact to S&P 500, after the firm’s earnings missed analysts’ expectations. Its third quarter revenue came in at 1.13 billion, slightly lower compared to the forecast of $1.14 billion.

Meanwhile, chip maker AMD crashed expectations as it announced a $71 million net income in the previous quarter but investors fixed their eyes to the firm’s fourth quarter outlook, which showed that the firm is expecting of 12% drop in its revenue.

FAQs

Leave a Reply

Your email address will not be published. Required fields are marked *