Wall Street finished with little loss on Wednesday due to the weak retail sales data along with concerns over simmering geopolitical tensions and a global economic slowdown offset a good start to the third-quarter corporate earnings reporting season.
The Dow Jones Industrial Average closed down at 27,002.52, while the S&P 500 lost 5.99 points, and finished at 2,989.69. The tech-heavy Nasdaq finished at 8,124.18.
All the major index lost the gain on the previous day after yesterday's trading session. losses in the Oil & Gas, Technology and Telecoms sectors also led shares lower as information technology fell 1.0% lead the broader market down because Apple and Microsoft moved 0.4% and 0.8% lower, respectively.
Weaker retail sales data reported slipped 0.3% in September from a month earlier, falling well short of the 0.2% gain economists expected which raising some concern that the consumer may not be able to continue to keep the U.S. economy afloat, the decline since February boosted fears that a slowing global economy is affecting U.S. consumers and traders will turn attention to a slew of data on housing, manufacturing and industrial production for further insight into the economic backdrop. But the news was not as bad as it seemed since August results were revised upward. On the positive side, the consumer discretionary sector raised 0.4% and outperformed despite the surprise retail sales decline.
Netflix stock towered 10.7% as profits jump amid solid growth. Revenues increased by 31% to $5.25B, in line with consensus but subscriber growth fell a bit short of the company's guidance. Apart from IBM shares fall 5% due to revenue misses on weakness in its biggest unit. Bank of America better-than-expected earnings and revenue for the third quarter, sending its stock up 1.5% along with United Airlines Holdings Inc which also topped expectations and raised the guidance for the year. A prolonged strike at GM might come to end after a deal between the carmaker and the United Auto Workers union. New GM contract has $7.7B in investment which will create or preserve about 9,000 jobs.
So far, the corporate earnings season is going to meet the analyst expectation. According to FactSet data, 83% of companies topped analyst expectations in the S&P 500 index.
In commodity market Oil futures recouping much of the loss they suffered a day earlier and registered their first climb in three sessions. But still, the worries over demand prospects remained the same.
Traders are currently looking towards the upcoming meeting with President Donald Trump and the Chinese President Xi Jinping at the APEC Forum in Chile and from the white house president probably not sign any trade deal before this meeting apart from a partial trade deal which had been already formalized. Investors also cheered positive developments around Brexit and Prime Minister Boris Johnson has repeatedly insisted he will not request another delay to leave the EU on Oct. 31. The two-day summit will begin in Brussels from today between the EU leaders which probably last such a meeting before the fast-approaching Brexit deadline.