Wall Street edges along on tepid bank earnings, media stocks drag

Cornelia Mascio
Ottobre 13, 2017

A rally on Wall Street paused on Thursday following lackluster quarterly earnings from JPMorgan and Citigroup and as media stocks dropped for the second straight day.

JPMorgan and Citigroup, which had already talked down third-quarter expectations, reported earnings that were better than Wall Street estimates even as trading revenues fell.

Comcast fell 2.8 per cent, Disney fell 1 per cent. Viacom sank 6.6 per cent after warning that Charter Communications subscribers may lose access to its channels as the expiration looms for a distribution deal.

The Standard & Poor's 500 index fell 4 points, or 0.2 percent, to 2,550.

"But the strength in the global economy has accelerated and a weakening dollar should set up companies for very healthy beats in Q3".

US stock indexes are closing slightly lower as retailers and media companies decline.

With the S&P 500 up about 14 per cent in 2017, investors are betting on strong earnings growth across the S&P 500.

AT&T sank 6.1 per cent as it confirmed many of its full-year financial targets, but said it expects a hit of US$210 million in pre-tax earnings in the third quarter due to USA hurricanes and earthquakes in Mexico.

At 11:04 a.m. ET (1504 GMT), the Dow Jones Industrial Average was down 10.02 points, or 0.04 percent, at 22,862.87, the S&P 500 was down 2.31 points, or 0.09 percent, at 2,552.93 and the Nasdaq Composite was down 1.34 points, or 0.02 percent, at 6,602.20.

That, along with a brokerage Guggenheim raising concerns over subscriber losses at Disney and Viacom, sent fresh jitters across a sector that was hit a day earlier by President Donald Trump's suggestion to challenge TV network licenses over "fake news".

The consumer discretionary sector lost almost half a percent weighed down by media stocks.

J.Jill almost halved to hit a record low of US$4.96 after the women's fashion retailer slashed its third-quarter forecast. On the Nasdaq, 1,294 issues fell and 965 advanced.

A near 1 percent jump in Microsoft led the gains in the technology sector, the best performing among the 11 major sectors this year.

The consumer discretionary sector lost 0.44 percent, weighed down by media stocks.

Declining issues outnumbered advancers on the NYSE by 1,472 to 983.

Altre relazioniGrafFiotech

Discuti questo articolo

PIÙ POPOLARE GrafFiotech

Segui i nostri GIORNALE