Wall Street Rises as Traders Digest Earnings, U.S. stocks traded modestly lower on Thursday amid a cascade of earnings reports and weaker-than-forecast economic reports.
The S&P 500 (SPX) was off about a point, or 0.1%, to 2,105. The Dow Jones Industrial Average (DJI) dropped 30 points, or 0.3%, to 17,990. A 4% decline in 3M's shares was contributing heavily to Dow's losses. The Nasdaq Composite (RIXF) was flat at 5,034, within a striking distance from its record level reached 15 years ago.
Kim Caughey Forrest, senior analyst at Fort Pitt Capital, noted that sideways market moves suggest expectations going into the earnings season weren't low enough.
"Some companies are beating expectations by a narrow margin, but even the ones who are missing estimates are not punished as much because of low-interest-rate environment," Forrest said suggesting that companies' continued ability to service their debt is covering up their poor performance.
Among the hardest hit sectors today was home builder industry. PulteGroup Inc. shares plunged 7.8% after a surprise drop in profit. The S&P 500 home-building subsector fell 4.7%.
Data: Sales of new single-family homes tumbled 11.4% to an annual rate of 481,000 in March, pulling back from a seven-year high reached a month earlier and hitting the slowest pace since November, according to government data released Thursday. However, economists caution that the large margin of error make single-month readings less reliable.
The number of people who applied for regular state unemployment-insurance benefits ticked up 1,000 to 295,000 in the week that ended April 18, signaling a low level of layoffs, according to government data released Thursday.
Markit's preliminary report on the manufacturing purchasing managers index for April fell to 54.2 in April from 55.7 in March. Flash PMIs out of Europe released earlier on Thursday showed growth weakened at the start of the second quarter
Earnings: On an exceptionally busy day for earnings, shares of eBay Inc. (EBAY) jumped 3.5% after earnings showed its PayPal unit brought more revenue that its core marketplace division.
General Motors(GM.XX) earnings disappointed, hurt by stronger currency and weaker overseas performance. Shares fell 3.8%, making it the top decliner on the S&P 500.
Caterpillar Inc.(CAT) posted much better-than-expected earnings and lifted its full-year outlook. Shares initially rose as much 2%, but at last check were down 0.8%.
Dunkin' Brands Group Inc.(DNKN)reported first-quarter earnings above analyst forecasts and boosted its 2015 outlook
Tech giants fill out the results docket after the market closes. Google Inc.(GOOGL) is forecast to post first-quarter earnings (http://www.marketwatch.com/story/what-to-watch-for-in-googles-earnings-2015-04-20) of $6.61 a share, while Microsoft Corp. (MSFT) is expected to report earnings
Amazon.com Inc.(AMZN) is likely to post a loss (http://www.marketwatch.com/story/what-to-watch-for-in-amazons-earnings-2015-04-20) of 16 cents a share in the first quarter.
Movers and shakers:Qualcomm Inc.(QCOM) lost 2.4% after the chip maker late Wednesday reported a slump in second-quarter earnings (http://www.marketwatch.com/story/qualcomm-beats-earnings-cuts-semiconductor-outlook-2015-04-22).
AT&T Inc. (T) rose 2.7% on a slightly better-than-expected earnings report issued on Wednesday
Other markets:European stocks traded mostly lower after the disappointing PMIs. Investors are also closely monitoring news about Greece's reform talks ahead of a key meeting of eurozone finance ministers on Friday. Greek Prime Minister Alexis Tsipras is due to meet German Chancellor Angela Merkel in Brussels on Thursday.
Kim Caughey Forrest, senior analyst at Fort Pitt Capital, noted that sideways market moves suggest expectations going into the earnings season weren't low enough.
"Some companies are beating expectations by a narrow margin, but even the ones who are missing estimates are not punished as much because of low-interest-rate environment," Forrest said suggesting that companies' continued ability to service their debt is covering up their poor performance.
Among the hardest hit sectors today was home builder industry. PulteGroup Inc. shares plunged 7.8% after a surprise drop in profit. The S&P 500 home-building subsector fell 4.7%.
Data: Sales of new single-family homes tumbled 11.4% to an annual rate of 481,000 in March, pulling back from a seven-year high reached a month earlier and hitting the slowest pace since November, according to government data released Thursday. However, economists caution that the large margin of error make single-month readings less reliable.
The number of people who applied for regular state unemployment-insurance benefits ticked up 1,000 to 295,000 in the week that ended April 18, signaling a low level of layoffs, according to government data released Thursday.
Markit's preliminary report on the manufacturing purchasing managers index for April fell to 54.2 in April from 55.7 in March. Flash PMIs out of Europe released earlier on Thursday showed growth weakened at the start of the second quarter
Earnings: On an exceptionally busy day for earnings, shares of eBay Inc. (EBAY) jumped 3.5% after earnings showed its PayPal unit brought more revenue that its core marketplace division.
General Motors(GM.XX) earnings disappointed, hurt by stronger currency and weaker overseas performance. Shares fell 3.8%, making it the top decliner on the S&P 500.
Caterpillar Inc.(CAT) posted much better-than-expected earnings and lifted its full-year outlook. Shares initially rose as much 2%, but at last check were down 0.8%.
Dunkin' Brands Group Inc.(DNKN)reported first-quarter earnings above analyst forecasts and boosted its 2015 outlook
Tech giants fill out the results docket after the market closes. Google Inc.(GOOGL) is forecast to post first-quarter earnings (http://www.marketwatch.com/story/what-to-watch-for-in-googles-earnings-2015-04-20) of $6.61 a share, while Microsoft Corp. (MSFT) is expected to report earnings
Amazon.com Inc.(AMZN) is likely to post a loss (http://www.marketwatch.com/story/what-to-watch-for-in-amazons-earnings-2015-04-20) of 16 cents a share in the first quarter.
Movers and shakers:Qualcomm Inc.(QCOM) lost 2.4% after the chip maker late Wednesday reported a slump in second-quarter earnings (http://www.marketwatch.com/story/qualcomm-beats-earnings-cuts-semiconductor-outlook-2015-04-22).
AT&T Inc. (T) rose 2.7% on a slightly better-than-expected earnings report issued on Wednesday
Other markets:European stocks traded mostly lower after the disappointing PMIs. Investors are also closely monitoring news about Greece's reform talks ahead of a key meeting of eurozone finance ministers on Friday. Greek Prime Minister Alexis Tsipras is due to meet German Chancellor Angela Merkel in Brussels on Thursday.
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