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Tuesday, July 21, 2015

Wall Street lower as IBM, United Tech results weigh

US stocks fell today in the wake of results from IBM and United Technologies which curbed some optimism over earnings season while investors awaited quarterly profits from tech giants including Apple and Microsoft.

The Dow fell over 1 percent, with IBM and United Tech contributing around 126 points to the drop. The decline put the blue-chip index on track for its biggest percentage decline in about two weeks.

IBM's shares were down 6.2 percent to $162.42, a day after the company's revenue dropped for the 13th consecutive quarter and fell short of analyst's expectations.

Fellow Dow component United Technologies tumbled 7.6 percent to $102.06 and was the worst performer on the Dow after the company cut its full-year profit outlook.

The Dow Jones industrial average fell 204.51 points, or 1.13 percent, to 17,895.9, the S&P 500 lost 9.58 points, or 0.45 percent, to 2,118.7 and the Nasdaq Composite dropped 9.25 points, or 0.18 percent, to 5,209.61.

European shares retreated from their six-week high in the previous session, with healthcare leading the market lower after Novartis reported quarterly incomes below analysts' expectations.

The market extended losses in late trade, with poor US earnings from the likes of IBM putting pressure on Wall Street and a strengthening euro hitting Europe's exporters.

The STOXX Europe 600 Healthcare Index was a top sectoral faller, down 1.5 percent. Novartis dropped 2.1 percent after the Swiss drugmaker reported a weak performance by its eyecare division in the second quarter.

While the euro rallied on Tuesday, Novartis saw its results hit by strong dollar last quarter, which traders said could hurt earnings in general as investors anticipate an interest rate increase by the US Federal Reserve.

The FTSEurofirst 300 index of top European shares was down 1.1 percent at 1,596.34 points by the close after rising to a six-week high in the previous session.

Gold prices stabilised on Tuesday just above a five-year low, with precious metal miner Fresnillo up 3.7 percent, the top FTSEurofirst 300 riser.

The price of gold had also been hit by a strong dollar. It fell as much as 4 percent on Monday, wiping more than $8 billion off the combined market value of global gold-mining companies.

Meanwhile, Japan's Nikkei share average climbed to near four-week highs, supported by growing expectations for strong first-quarter earnings while gains in Chinese shares also underpinned sentiment.

The Nikkei share average ended 0.9 percent higher at 20,841.97, the highest closing level since June 24. The broader Topix gained 0.7 percent to 1,673.88 and the JPX-Nikkei Index 400 advanced 0.6 percent to 15,110.63.

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Tags:  US  stock market  Europe  Nikkei  





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