Wall Street Takes a Small Hit, Thanks to Unimpressive Quarterly Reports

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U.S. stocks completed a patchy session this Thursday with small drop as investors went through the latest earnings. Significant drops were seen in the telecom sectors, which, however, were offset by healthcare sector gains.

Telecoms .SPLRCL experienced a reduction of 2%, which is believed to be the sector’s most significant decline in the past 5 weeks. Telecom operator, Verizon, had reported a loss of 2.5%. The operator had not met its target in terms of garnering enough wireless subscribers, which, naturally, led to a drop in revenue.

The sector had also faced pressure towards the end of the session due to AT&T extending earlier losses in wake of the reports about its merger with Time Warner. The operator’s (AT&T) shares had declined by 1.9%, whereas Time Warner enjoyed a gain of 4.7%.

Fortunately, American Express came to the rescue, posting a 10.3% jump. The gain by Amex had managed to offset the overall drop, thanks to the credit card firm’s positive quarterly results. The firm also boosted the forecast for 2016. Amex’s gains allowed the company’s stocks to enjoy a fantastic day, which hasn’t happened in almost 7 years.

According to JJ Kinahan, Chief Market Strategist at Ameritrade, the positive earnings, especially in terms of financials, have resulted in plenty of positivity, even though it might be temporary.

The Winners

Toy manufacturer, Mattel, also reported a rise due to robust earnings. The stocks went up by 6% to $32.46.

Similarly, diagnostic equipment manufacturer, Snap-On, reported an increase of 6.7%, resulting in share values going from $9.95 to $159.06.

The Losers

Not everybody had a good day going, as quite a few firms found themselves on the losing side.

To begin with, EBay faced a decline of 10.8% thanks to its abysmal performance in the 3rd quarter. In fact, EBay’s stock was the S.&.P. 500’s largest decliner, reporting a drop all the way down to $29.02.

Following EBay was Union Pacific, reporting a decline of 6.7%. The decline is said to have been fuelled by a drop in demand for consumer goods, which caused coal shipment and freight volumes to drop as well. The firm had lost a total of $6.48, resulting in current share prices coming down to $90.64.

Apart from Verizon, other major telecom operators such as Sprint and T-Mobile also reported declines of 2.3% and 0.6% respectively.

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