U.S. Stocks Waver on Earnings, China Data
October 18 2019 - 10:15AM
Dow Jones News
By Max Bernhard
U.S. stocks were little changed Friday as investors weighed some
upbeat earnings reports and data showing the Chinese economy slowed
further in the third quarter.
The Dow Jones Industrial Average fell 36 points, or 0.1%, to
26988 shortly after the opening bell. The S&P 500 was flat and
the Nasdaq Composite declined less than 0.1%.
Shares of American Express rose 0.1% after its third-quarter
earnings beat forecasts. Shares in Coca-Cola jumped 1.8% following
higher sales posted by the beverage giant. Intuitive Surgical was
up 4.2% after the company beat Wall Street forecasts for sales and
profit.
State Street climbed 1.7% after its quarterly results beat
analysts' estimates.
Meanwhile, China's benchmark Shanghai Composite Index fell 1.3%,
its biggest decline in a month. Fresh data showed that China's
economy grew 6% in the quarter as business activity continued to
deteriorate in the world's No. 2 economy. Each quarterly slowdown
in growth has pulled the economic performance to new lows not seen
since the current measure of output was adopted in 1992.
"The figures are painting markets in red today," said Ipek
Ozkardeskaya, a senior analyst at London Capital Group. "Pulling
below 6% would be really bad for investor sentiment, not only in
China, but globally."
The Stoxx Europe 600 gauge fell 0.1% as investors weighed
evidence of the further slowdown in China's economy and the
uncertainty surrounding Brexit, as well as disappointing corporate
results across Europe.
In the U.K., the FTSE 250 equity index ticked 0.3% higher and
the pound wavered between gains and losses against the U.S. dollar.
Investors are watching developments closely before U.K. lawmakers
vote Saturday on a draft Brexit agreement struck with the European
Union. Prime Minister Boris Johnson is trying to muster enough
support for the deal in the U.K. Parliament.
British lawmakers' support for the deal would provide a
short-term boost to the pound and European equities, but wouldn't
eliminate deeper concerns, said Seema Shah, senior investment
strategist at Principal Global Investors. "You may have lifted the
uncertainty, but you still have to deal with Brexit," she said.
French auto maker Renault was the biggest loser in Europe,
declining 12.1% after cutting its full-year revenue and
operating-margin guidance on a sales slump outside Europe and
higher costs from developing lower-emissions car models. French
food giant Danone dropped 7.9% after it lowered expectations for
its like-for-like sales growth in 2019.
Write to Max Bernhard at Max.Bernhard@dowjones.com
(END) Dow Jones Newswires
October 18, 2019 10:00 ET (14:00 GMT)
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