US shares end mixed but Nasdaq and S&P500 ahead
Tech stocks provide support
UK Parliament in terror attack
CLOSE
US shares finished mixed on Wednesday, with the Dow Jones finishing six points down but tech stocks bolstering the wider market.
Microsoft (NASDAQ: MSFT) added 1.28% to $65.03, while Apple Inc, tech behemoth (NASDAQ: AAPL) added 1.13% to $141.42.
The Dow Jones closed 6.71 lower at 20,661; the Nasdaq closed 27 higher at 5,821, while the S&P500 added over four points to 2,348.
The markets are still mulling over whether Trump can deliver on some of his election pledges ahead of a potential storm ahead as the Republican health-care bill is set for a vote in Congress on Thursday
On the losing front Nike (NYSE: NKE) lost over 7% as the group reported third quarter sales that missed analysts’ estimates as the sports retailer continued to battle for market share in North America.
Revenue in the three months to 28 February rose 5% to US $8.43bn, falling short of analysts’ estimates of $8.47bn.
Competition in the footwear market from retailers like Adidas and Under Armour weighed on Nike’s sales growth in North America, which accounts for about half of the group’s business. Sales rose just 3% in the region.
Sears Holdings Corp (NYSE: SHLD) sank 12% after the struggling retailer warned that it has “substantial doubt” that it would be able to “continue as a going concern” if its turnaround plan fails.
Cheerios cereal maker, in the news yesterday with results, fell 1.4%, following a downgrade by Stifel Nicolaus.
Elsewhere, Moleculin Biotech (NYSE: MBRX) shares gained over 24% to US$ 1.33 after the company reported that its AML treatment liposomal annamycin has been awarded the FDA Orphan Drug designation.
The anticipated homes data showed that sales of non-new homes fell in February more than had been expected as the housing market remains choked.
This is pushing up prices and sidelining potential buyers.
The National Association of Realtors revealed sales declined 3.7% to a seasonally adjusted annual rate of 5.48 million units last month.
MID-SESSION
Wall Street shares are mixed at midsession as the Trump dump appears to be continuing but newswires are filled with emerging details of a terror attack in London.
On Wall Street, the Dow Jones is down around 30 points at 20,637 at the time of writing, while the Nasdaq is up over 11 at 5,805.
The broader based S&P 500 is also higher by a tad – up 1.47 points to 2,345.
In London, FTSE 100 closed 51 points down as London was sent into chaos after what police described as a "terrorist incident" hit the Houses of Parliament and surrounding area
A woman has reportedly died and several injured after a car was seen running into people while a policeman was attacked by a knife in the Palace of Westminster.
Prime Minister Theresa May was reportedly bundled out of the Commons by armed officers.
On the state of US markets, earlier, Kathleen Brooks, at London-based City Index, said: “On balance, even though there are growing reasons to sell stocks, Tuesday’s decline may not be the start of a market rout.
“Lower Treasury yields could cushion any fall in stocks, and until we see the Vix pick up then we doubt that the sell-off will last. There are two things that could trigger a deeper sell off on Thursday: Yellen talking and Trump’s first legislative test in Congress when he tries to repeal Obama’s healthcare act.
“If Trump fails to get his way on Capitol Hill then the Trump trade could falter once more, especially if Yellen rolls back on her less hawkish message from last week.”
In a nervy US market, retailer Sears Holdings Corp (NASDAQ:SHLD) was a notable loser it warned over its future if its latest turnaround plan falters.
A 10-k document filed yesterday included a going concern notice, even though it added its revival strategy unveiled in February to cut stores and reduce staff would be sufficient for a year at least.
In small caps, Internet of Things Inc (CVE:ITT) added 4.17% to $0.125.
Last week, the group said it had struck a partnership deal with a global conglomerate, which will see the Canadian company enter the huge Chinese market and gain a profitable income stream.
It has inked a letter of intent to form a joint venture with New Hope Data Technology Co Ltd, which is affiliated to the $15.5bn annual revenue New Hope Group.
OPEN
US equities started generally lower midweek as markets continued to fret over when and how President Donald Trump can implement his economic stimulus measures.
After sharp losses yesterday, the Dow Jones Industrial Index started 67 down at 20, 601, while the S&P 500 lost over four points, to stand at 2,339.
The tech heavy Nasdaq index however did make gains, adding 2.57 to 5,776.
It comes as Trump's plans to replace the so-called Obamacare has been met with resistance, heightening fears it may not pass a vote tomorrow (Thursday).
Frontier Communications Corp (NASDAQ:FTR) was down over 11% after Goldman Sachs downgraded the share to 'sell' from 'neutral'.
After being pummeled yesterday, financial shares were again lower, with Bank of America Corp (NYSE: BAC) down 0.43% to $22.29, Wells Fargo & Co (NYSE:WFC) down 1.2% to $55.17 and Citigroup Inc (NYSE:C) down 0.38% to $57.84.
PREVIEW
US shares are seen opening lower after yesterday's sell-off as investors start mulling over whether newly elected President Trump can, and will, deliver on election promises.
It comes after the benchmark Dow Jones Industrial Index and the Nasdaq registered their worst daily drops since September yesterday as financial stocks crumbled on Tuesday.
The former index (Dow) tanked 237 points to 20,668, while the latter lost 107 points to finish at 5,793.
The S&P 500 declined the most in one session in five months and closed 29 points lower at 2,344.
Today, Dow futures are down 39 points; the S&P500 futures are 1.75 lower and Nasdaq are 2.5 points off.
Mike Van Dulken, analyst at Accendo Markets in London, said: "Global equities are nursing losses as concerns about delays to US stimulus pull indices from recent highs.
He said after more than four months of promises and two months in office, investors are worried that the Trump rally has gone too far on promises alone, now desiring some proof.
"Nonetheless falls of circa 2% are merely pullbacks, not yet corrections (10% fall)," he added.
In Europe, the FTSE 100 is down over 61 at the midday point, while the German DAX is 57 lower.
The FHFA House Price Index for January will be released at 9am Eastern Time, while data on existing home sales for February will be released an hour later.
On the corporate front, sports goods retailer Nike Inc (NYSE:NKE) reported upbeat earnings in the third quarter, but sales missed estimates and shares dropped almost 4% after hours.
Traders will be eyeing earnings today from Winnebago Industries Inc (NYSE: WGO) and others. Herman Miller Inc (NYSE:MLHR) also posts quarterly numbers.