View the article online at http://citywire.co.uk/money/article/a649243
Overnight Markets: Wall Street down ahead of earnings season
Investors are expecting earnings to be only slightly better than the third-quarter's lacklustre results.
Wall Street declined on Monday as investors looked forward to the corporate earnings season on Wednesday.
The Dow Jones industrial average dropped 51 points, or 0.38%, to 13,384. The Standard & Poor's 500 Index fell five points, or 0.31%, to 1,462. The Nasdaq Composite Index lost three points, or 0.09%, to 3,099.
Investors are expecting earnings to be only slightly better than the third-quarter's lacklustre results, and analysts' current estimates are down sharply from where they were in October. According to Thomson Reuters data, fourth-quarter earnings growth is expected to come in at 2.8%.
Financial sector suffered after a group of major US banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures.
In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.
Bank of America shares lost 0.2% while Nationstar Mortgage Holdings jumped 16.8%. Citigroup shares were up 0.09%, and Wells Fargo shares fell 0.5%.
Other sectors also declined, most notably energy and utilities. Aluminum company Alcoa begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7%.
Shares of U.S. jet maker Boeing Co dropped 2% after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.
Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6%.
Video-streaming service Netflix Inc shares gained 3.4% after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.
Walt Disney Co fell 2.3% as the company started an internal cost-cutting review several weeks ago.
In Asia, shares declined on Tuesday in afternoon trade as Japanese exporters fell after the yen strengthened and as earnings results from HTC Corp. disappointed investors.
The MSCI Asia Pacific Index slipped 0.8% to 131 as of 1:53 p.m. Tokyo time. The Nikkei 225 fell 1.2%, a second day of declines. South Korea’s Kospi Index dropped 0.6%, while Taiwan’s Taiex Index decreased 0.7%. Australia’s S&P/ASX 200 Index slid 0.5%. Hong Kong’s Hang Seng Index slid 0.5% and China’s Shanghai Composite Index retreated 0.1%.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.
by Daniel Grote on Apr 29, 2016 at 15:35