Results Round Up As Markets Fall

Wall Street spiralled down Thursday for a third session, the disappointing results of heavyweights like Caterpillar and 3M making the Dow fall into negative territory from the beginning of the year.

The index of 30 largest stocks ​​dropped 119.09 points or 0.67% to 17,731.95 to show a decline of 0.5% since 1st January. The Standard & Poor’s-500, wider, fell 12.00 points, or 0.57%, to 2102.15 and the Nasdaq Composite ceded 25.36 points to 5146.41.

The S&P held a modest gain of 2.1% since the beginning of the year while the Nasdaq displayed 8.7%, far from the performance of European stock exchanges.

Caterpillar and 3M have sealed the Dow and the S&P at the opening while the Nasdaq high technology weighting, attempted a rebound in the morning before succumbing in turn bearish.

The S&P 500, referenced US managers, currently trading at 16.9 times estimated earnings over 12 months compared to a median of 14.7 over the last decade, showed data.

“For markets to rise, we need to see an acceleration of revenue and expenditure of households. But it seems that consumers are not spending enough and prefer to save,” said trader.

Analysts forecast an average decrease of 1% of the profits of companies S&P-R00 in the second quarter according to data from Thomson Reuters, less than the 3% decline they anticipated early July.

Among the companies that have already published, 75% had earnings above analysts’ estimates, is better than the average of 63% since 1994, but only 52% had sales exceed the consensus while the average since 2002 is 61%.

The 10 major sector indices S & P 500 ended down with leading utilities (-1.47%) and Materials (-1.46%). Volumes were important with seven billion shares that changed hands on various platforms by BATS Global Markets, against an average of 6.5 billion since early July.

CATERPILLAR

Caterpillar, the world leader in construction machinery, lost 3.61% to 76.88 dollars after a four-year low of 76.65 in reaction to disappointing sales in the second quarter. “It is worrying because Caterpillar serves some of the world economy barometer, just when there is concern for the health of China,” notes Mark Luschini, Janney Montgomery Scott strategist at Philadelphia.

3M industrial group, forced to lower its forecast again, showed the largest drop in the Dow with a decline of 3.80% and American Express, down 2.51% after missing consensus also weighed on the index.

Outside the index, investors have however welcomed the publication of General Motors more than doubled its profits in the second quarter rather well in China. The title took 3.96% to 31.50 dollars.

Also for the defense group Raytheon was awarded 6.41% in reaction to better than expected results and sports goods manufacturer Under Armour took 7.34%, record the key, after noting its annual sales forecast for the second time in three months.

Technological, specialist SanDisk data storage products jumped 17.6% after reporting a quarterly profit twice the consensus.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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