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(Reuters) – US stocks fell on Thursday, as weak industrials' results sparked concern over rising spending and the impact of tariffs, compounding concerns over rising costs in the US. Borrowing after the hawkish comments of the minutes of the Federal Reserve.
The trade war between the United States, China, rising borrowing costs and wage pressures were the primary concern for investors, as the third quarter earnings season gained ground and contributed to sales. massive last week.
Textron shares fell 9% after reporting a quarterly profit below expectations, hurt by lower sales of its turboprop aircraft as well as flat deliveries of its flagship business aircraft, the Cessna.
The United Rentals industrial equipment rental company fell 6.1% and the maker of Snap-on Inc. hand tools 7.6% after the results.
Sealed Air Corp shares fell 8.1% after the packaging company lowered its earnings outlook for the full year due to higher than expected raw material and freight costs.
Nine of the 11 major sectors of the S & P 500 index were down, driven by a 1% decline in industrial inventories. Only defensive public services and consumer staples, and real estate stocks, were trading higher.
The Fed 's view, detailed in the minutes of its September meeting released Wednesday, has comforted the expectations of a fourth rise in interest rates in December and more next year, despite the harsh criticism of President Donald Trump.
The hawkish commentary also returned returns on 10-year T-bills to the multi-year highs reached last week, which contributed to the liquidation of the shares.
"If interest rates continue to rise from their current levels, investors will become even more reluctant to buy the troughs of their shares," writes Hussein Sayed, chief market strategist at the FXTM.
At 9:40 am EDT, the Dow Jones Industrial Average was down 147.63 points, or 0.57%, to 25,559.05%, while the S & P 500 was down 15.44 points or 0, 55% at 2,793.77 and Nasdaq Composite down 45.72 points or 0.60%. at 7,596.98.
According to I / B / E / S Refinitiv, S & P 500 corporate profits are expected to have risen 21.9% in the quarter. 84.3% of the 51 companies that published a report exceeded analysts' expectations.
Alcoa shares rose 7.9% after the first-ever US aluminum producer announced a quarterly profit above expectations, as a series of supply crises led to higher prices for alumina.
Philip Morris gained 2.9% after Marlboro's cigarette maker surpassed analysts' estimates of quarterly profits and sales.
Falling issues outnumbered defenders, with the NASSE's ratio of 3.07 to 1 and the Nasdaq ratio of 2.52 to 1.
The S & P index posted a new high of 52 weeks and 17 new lows, while the Nasdaq recorded six new highs and 32 new lows.
(Report by Medha Singh in Bengaluru, edited by Anil D & # 39; Silva)
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