Wall Street sank today as a spate of poor earnings reports from media companies dragged the sector index to its worst two-day loss since the financial crisis.
The S&P 500 (INDEXSP:.INX) sank 0.7 percent to 2,085.19 at 3:48 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.6 percent to 17,429.70, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) tumbled 1.6 percent to 5,060.68.
Today’s losses come against the backdrop of tepid growth in the U.S. and around the world. Many investors are also concerned that elevated valuations on some stocks aren’t supported by earnings growth.
Further, investors are skittish ahead of the July U.S. jobs report, due out tomorrow as they try to gauge the path of interest rates in the U.S.
The Fed has said it will raise rates only when it sees a sustained recovery in the economy. A hike in rates, which have stayed near zero for nearly a decade, will increase borrowing costs for companies, crimping profits.
MOVERS:
Viacom (NASDAQ:VIAB) dropped 13.2 percent to $44.62 after saying profit slipped in its latest quarter as U.S. advertising revenue took a hit amid shifting viewership habits that have blunted the youth-leaning media company's bottom line.
21st Century Fox (NASDAQ:FOXA) dropped 6.5 to $29.65 even as the media and entertainment company reported better-than-expected fourth-quarter earnings and a new $5 billion stock-buyback program following the media company’s recent leadership transition.
CBS (NYSE:CBS) added 2.5 percent to $51.71. Second-quarter profit fell 24 percent amid restructuring-related charges and weaker results at its entertainment and local broadcasting divisions.
SeaWorld Entertainment (NYSE:SEAS) rose 3.9 percent to $18.08 even as profit and revenue fell short of estimates.
Mondelez International (NASDAQ:MDLZ) wavered and was last down 0.4 percent at $46.47. Pershing Square Capital Management said it has built a stake in the food-and-beverage company valued at about $5.6 billion.
Tesla Motors (NASDAQ:TSLA) fell 10 percent to $243.33 after the electric-car maker backed off its full-year vehicle sales prediction.
Michael Kors Holdings (NYSE:KORS) gained 10.5 percent to $43.65 after the fashion company reported better-than-expected first-quarter earnings.
L Brands (NYSE:LB) fell 3.4 percent to $81.61. The Victoria's Secret parent reported a 3 percent increase in same-store sales for July, better than the 2.3 percent consensus estimate of analysts surveyed by Capital IQ.
Costco (NASDAQ:COST) skidded 0.4 percent to C$146.02. Costco reported comparable-store sales were flat in July, a better performance than the 0.6 percent drop that analysts were expecting.
Keurig Green Mountain (NASDAQ:GMCR) plummeted 29 percent to $52.03 after the maker of single-serve coffee systems cut sales and profit forecasts.
Transocean (NYSE:RIG) gained 12.2 percent to $13.85 after the world’s largest offshore rig owner posted better-than-estimated earnings amid costs cuts.
Chesapeake Energy (NYSE:CHK) rose 16.5 percent to $8.19 after saying it’s in discussions to sell more assets or stakes in oil fields as the prospect of a prolonged energy-market slump imperils cash flow.
Fitbit (NYSE:FIT) slid 13.5 percent to $44.73 after the maker of wearable fitness trackers posted narrower margins in its first earnings report following an initial public offering.
CenturyLink (NYSE:CTL) declined 2.9 percent to $27.71 after the communications company’s earnings and revenue fell in the second quarter, undershooting forecasts and sending the share price down about 4 percent in after-hours trading.
COMMODITIES:
Gold futures for December delivery settled up 0.4 percent at $1,090.10 an ounce.
West Texas Intermediate futures dropped 1.1 percent to close at $44.66 a barrel, its lowest settlement price since March.