Wall Street dropped today on the heels of results from IBM and United Technologies which curbed some optimism over earnings season while investors awaited quarterly profits from tech giants including Apple and Microsoft.
The S&P 500 (INDEXSP:.INX) slipped 0.4 percent to 2,119.62 at 3:46 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 0.9 percent to 17,929.38, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) slipped 0.2 percent to 5,211.29.
Apple, Microsoft and Yahoo are scheduled to report results after the market close.
Of the companies that have reported earnings so far, 70 percent have reported earnings above analyst expectations, above the 63 percent average beat rate since 1994. But 53 percent have topped revenue forecasts, below the 61 percent average beat rate since 2002. U.S. companies are expected to post their worst sales decline in nearly six years in the second quarter, in part due to the strong dollar that reduces the value of U.S. companies' overseas income.
MOVERS:
International Business Machines (NYSE:IBM) fell 6.1 percent to $162.60, a day after the company's revenue fell for the 13th consecutive quarter. IBM is in the midst of a significant transition toward businesses like cloud services and security solutions.
United Technologies (NYSE:UTX) fell 7.6 percent to $102.12 after the provider of high technology products cut its full-year profit outlook as it warned of pressures in its aerospace systems and Otis elevators businesses.
Qualcomm (NASDAQ:QCOM) rose 2.2 percent to $65.23 after a tech website said the chipmaker is preparing to lay off several thousand employees, or more than 10 percent of its 30,000-strong workforce.
Lexmark International (NYSE:LXK) tanked 19.9 percent to $37.90. The second-largest U.S. printer maker plans to cut about 500 Jobs after swinging to a loss in its latest quarter on lower revenue.
Harley-Davidson (NYSE:HOG) advanced 4.8 percent to $57.55 after earnings beat estimates. The Milwaukee, Wisconsin-based company said its revenue and profit slid in the latest quarter, though earnings still came in better than Wall Street expectations.
Tesla Motors (NASDAQ:TSLA) slumped 5 percent to $268.25 after the electric car maker was cut to “sell” from “neutral” by UBS.
Verizon (NYSE:VZ) retreated 2.6 percent to $46.85. The holding company’s profit edged in above Wall Street expectations in the second quarter, though mainstream wireless sUBScriber growth slowed and revenue came in below forecasts.
Bank of New York Mellon (NYSE:BK) rose 2.1 percent to $43.90 after reporting a 48 percent jump in profit in its second quarter, as the investment manager kept spending in check and grew revenue.
Chesapeake Energy (NYSE:CHK) slumped 8.9 percent to $9.36. The natural gas producer is eliminating its dividend, with the savings going to help fund anticipated 2016 capital spending.
COMMODITIES:
August gold settled at $1,103.50 an ounce on Comex, down 0.3 percent.
U.S. September crude settled at $50.36 per barrel, up 0.4 percent.