US close: Stocks sink amid poor durable goods data and disappointing earnings
US stocks sank on Tuesday, suffering their biggest in drop in three weeks, after disappointing data on durable goods led to speculations that economic growth was slowing down.
American Airlines Group
$14.11
12:59 19/04/24
Caterpillar Inc.
$354.66
10:59 19/04/24
Dow Jones I.A.
37,986.40
04:30 15/10/20
Microsoft Corp.
$399.12
13:09 19/04/24
Nasdaq 100
17,037.65
12:15 19/04/24
Peabody Energy Corp.
$24.08
10:59 19/04/24
Procter & Gamble Co.
$158.14
11:09 19/04/24
Texas Instruments Inc
$159.68
12:54 19/04/24
United Technologies Corp.
$101.56
11:09 19/04/24
The Dow Jones Industrial Average closed points down at, while the S&P lost points closing at and the Nasdaq dropped to points.
Orders for durable US good declined 3.4% in December, registering the fourth decline in the past five months and falling well below the expected 0.1% decline.
According to figures released by the Commerce Department on Tuesday, durable goods orders for November were revised to show a 2.1% drop instead of a 0.9% drop.
Meanwhile, US house prices rebounded by 0.2% in November, to lower the year-over-year gain to 4.3%, according to the S&P/Case-Shiller 20-city composite. The report released on Tuesday, showed that on a seasonally adjusted basis home prices advanced 0.7%.
The consumer confidence index soared in January to a seven-year high of 102.9, while new-home sales rose 11.6% in December.
“The surge in the conference board measure of consumer confidence to a seven-year high in January suggests that consumers started the year in a buoyant mood and that the decline in retail sales in December was nothing more than a blip,” analysts at CMC Markets said in a note.
In corporate news, Microsoft endured its worst day since July 2013, falling 9.37%, after JP Morgan cut the company to neutral from overweight. The tech giant’s commercial sales fell below expectations late on Monday.
“Microsoft had already set the stage for disappointment overnight after it offered a weaker outlook for its software business,” said CMC Markets analyst Jasper Lawler.
“It beat earnings estimates and announced a share buyback scheme of $30bn which is larger than previous years although perhaps not quite as aggressive as some had called for.”
American Airlines Group fell 5.07% after reporting fourth quarter earnings that beat analysts’ expectations but reported its revenue per available seat mile, an important aviation industry gauge, fell 1%.
Peabody Energy slid 6.45% after it cut its quarterly dividend and said it forecast a severe first quarter loss after posting a fourth quarter loss of $514.6m, while Procter & Gamble fell almost 3.45% after disappointing results.
Caterpillar lost 7.18% after announcing a disappointing outlook for 2015 and reporting lower-than-expected earnings.
Texas Instruments fell 0.15% despite reporting better-than-expected fourth quarter earnings on Monday night, while United Technologies 0.35% advanced after its fourth quarter earnings rose from $1.45bn to $1.47bn.
Gold futures advanced by over 1% to $1,293.90, while the dollar fell over 0.7% against the pound, by 0.6% against the yen and by over 1.2% over against the euro.
Oil prices rebounded strongly, with Brent crude and West Texas intermediate gaining over 2% to settle at $49.2 a barrel, while West Texas Intermediate rose almost 1.8% to end the day just under $46 a barrel.
S&P 500 - Risers
Diamond Offshore Drilling Inc. (DO) $34.28 +4.48%
Nabors Industries Ltd. (NBR) $11.88 +4.12%
Corning Inc. (GLW) $24.73 +3.43%
Transocean Ltd. (RIG) $16.98 +2.97%
ProLogis (PLD) $47.13 +2.79%
Waters Corp. (WAT) $119.35 +2.79%
Newmont Mining Corp. (NEM) $25.14 +2.65%
Denbury Resources Inc. (DNR) $7.14 +2.59%
TE Connectivity Ltd (TEL) $64.63 +2.33%
Noble Corporation plc (NE) $17.20 +2.20%
S&P 500 - Fallers
Microsoft Corp. (MSFT) $42.66 -9.25%
Caterpillar Inc. (CAT) $79.85 -7.18%
Peabody Energy Corp. (BTU) $6.24 -6.45%
Freeport-McMoRan Inc (FCX) $18.38 -6.03%
Joy Global Inc. (JOY) $41.29 -5.32%
Nvidia Corp. (NVDA) $19.63 -4.78%
Intel Corp. (INTC) $34.19 -4.51%
Micron Technology Inc. (MU) $29.65 -4.42%
Cisco Systems Inc. (CSCO) $26.90 -3.83%
Hewlett-Packard Co. (HPQ) $37.36 -3.81%
Dow Jones I.A - Risers
United Technologies Corp. (UTX) $119.16 +0.35%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $42.66 -9.25%
Caterpillar Inc. (CAT) $79.85 -7.18%
Intel Corp. (INTC) $34.19 -4.51%
Cisco Systems Inc. (CSCO) $26.90 -3.83%
Procter & Gamble Co. (PG) $86.49 -3.45%
Goldman Sachs Group Inc. (GS) $176.49 -2.18%
Visa Inc. (V) $250.99 -2.16%
Nike Inc. (NKE) $94.50 -1.92%
International Business Machines Corp. (IBM) $153.67 -1.72%
Unitedhealth Group Inc. (UNH) $110.01 -1.43%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $454.17 +1.70%
Dollar Tree Inc (DLTR) $71.32 +1.36%
Xilinx Inc. (XLNX) $39.44 +1.17%
Illumina Inc. (ILMN) $203.25 +0.78%
Sba Communications Corp. (SBAC) $120.04 +0.76%
Starbucks Corp. (SBUX) $88.34 +0.25%
Staples Inc. (SPLS) $16.91 +0.24%
Nasdaq 100 - Fallers
Microsoft Corp. (MSFT) $42.66 -9.25%
Vimpelcom Ltd Ads (VIP) $3.61 -5.00%
Nvidia Corp. (NVDA) $19.63 -4.78%
Intel Corp. (INTC) $34.19 -4.51%
Micron Technology Inc. (MU) $29.65 -4.42%
Cisco Systems Inc. (CSCO) $26.90 -3.83%
Autodesk Inc. (ADSK) $56.15 -3.57%
Apple Inc. (AAPL) $109.13 -3.51%
Seagate Technology Plc (STX) $57.06 -3.38%
Western Digital Corp. (WDC) $97.63 -3.32%