Wall St drops as economic outlook, corporate forecasts sour
By Stephen Culp NEW YORK (Reuters) - U.S. stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment
By Stephen Culp
NEW YORK (Reuters) - U.S. stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment.
All three major U.S. stock indexes pared losses after White House economic advisor Larry Kudlow denied a report by the Financial Times that the Trump administration cancelled preparatory trade talks with China.
Still, the S&P 500, the Nasdaq and the Dow all posted their biggest one-day percentage drops since Jan. 3.
On Monday, the International Monetary Fund trimmed its 2019 global economic growth estimates, and China confirmed its slowest economic growth rate in 28 years.
"There seems to be a plethora of negative news regarding the global economy and China and the corporate profits that were reported today couldn't offset that," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
"A lot of companies are coming out with earnings this week, so it's going to be a battle between earnings and the perception of what's going on China and the global market," Carlson added.
The downbeat China news pulled chipmakers lower. The Philadelphia SE Semiconductor index <.SOX> fell 2.9 percent.
Each of the FAANG momentum stocks, Facebook Inc
Fears of a slowdown in corporate profits mounted as companies posting fourth-quarter results provided disappointing forward-looking projections.
Johnson & Johnson
Shares of Stanley Black & Decker Inc
The Dow Jones Industrial Average <.DJI> fell 301.87 points, or 1.22 percent, to 24,404.48. The S&P 500 <.SPX> lost 37.81 points, or 1.42 percent, to 2,632.9 and the Nasdaq Composite <.IXIC> dropped 136.87 points, or 1.91 percent, to 7,020.36.
Of the 11 major sectors of the S&P 500, all but utilities <.SPLRCU> closed lower. Industrials <.SPLRCI>, energy <.SPNY>, communications services <.SPLRCL> and consumer discretionary <.SPLRCD> had the largest percentage losses.
With just over 12 percent of S&P 500 companies having reported thus far, 78.7 percent have beat expectations. Analysts expect S&P 500 fourth-quarter earnings growth of 14.1 percent, down from 20.1 percent on Oct. 1, according to Refinitiv data.
Oilfield services company Halliburton Co
International Business Machines Corp
During the dearth of U.S. economic data stemming from the government shutdown, a report from the National Association of Realtors showed U.S. sales of existing homes fell in December to the lowest level in three years.
The PHLX Housing index <.HGX> fell 1.8 percent.
Declining issues outnumbered advancing ones on the NYSE by a 3.16-to-1 ratio; on Nasdaq, a 3.15-to-1 ratio favoured decliners.
The S&P 500 posted 3 new 52-week highs and 1 new low; the Nasdaq Composite recorded 19 new highs and 33 new lows.
Volume on U.S. exchanges was 7.97 billion shares, compared to the 8.24 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Editing by David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.