Stocks ended Wednesday's session lower as the major indices settled just below the flatline.
A strong day from IBM as well as big banks JPMorgan and Goldman Sachs wasn't quite enough to offset a wounded health sector.
Pfizer and UnitedHealth were two of the biggest losers among the blue chips. United continued to struggle in the wake of comments from CEO David Wichmann who said on Tuesday that Medicare-for-All, an often-discussed policy among 2020 Democratic presidential hopefuls, would destabilize the health system.
The health sector was down nearly 3%, adding to the 2% drop it saw on Tuesday.
Investors also sifted through another round of earnings reports, including strong results from Morgan Stanley, United Continental Holdings and PepsiCo.
Broadly, earnings season is off to a roaring start. According to FactSet, 84.6% of S&P 500 companies that have reported first quarter earnings beat Street expectations.
Meanwhile, China released economic data Wednesday that calmed fears of a global economic slowdown. The country’s economy expanded 6.4% in the first quarter year over year, just ahead of the 6.3% expected by a Reuters poll.
Industrial production increased 8.5% year over year in March, and retail sales rose 8.7%, each beating estimates. Fixed asset investment advanced 6.3% year-over-year for the quarter, meeting expectations.
The Dow Jones Industrial Average closed 3 points lower at 26,449.7. The Nasdaq finished 4 points down at 7,996.1, and the S&P 500 slipped 6 points to end the day at 2,900.4.
At the small-cap level, the Russell 2000 slowed nearly 1% to 1,568, and the S&P Smallcap 600 receded 0.5% to 964.9.
1:00 pm: Wall Street dips its toe in the red as health sector swoons
US markets traded just below the flatilne, led my major declines in the health sector.
UnitedHealth dropped 2.6% to hinder the blue chips. The health insurer continued to decline following comments from CEO David Wichmann on Tuesday that Medicare-for-All, an often-discussed policy among 2020 Democratic presidential hopefuls, would destabilize the health system.
The sector as a whole was down 2.5%, adding to the 2% loss it took Tuesday.
Investors also sifted through another round of earnings reports, including strong results from Morgan Stanley, United Continental Holdings and PepsiCo.
Broadly, earnings season is off to a roaring start. 84.6% of S&P 500 companies that have reported first quarter earnings beat Street expectations, according to FactSet.
Meanwhile, China released economic data Wednesday that calmed fears of a global economic slowdown. The country’s economy expanded 6.4% in the first quarter year over year, just ahead of the 6.3% expected by a Reuters poll.
Industrial production increased 8.5% year over year in March, and retail sales rose 8.7%, each beating estimates. Fixed asset investment advanced 6.3% year-over-year for the quarter, meeting expectations.
The Dow Jones Industrial Average lost 6 points to 26,446.5. The Nasdaq ticked down 5 points to 7,994.6, and the S&P 500 slipped 6 points to 2,901.3.
At the small-cap level, the Russell 2000 declined 1% to 1,566.7, and the S&P Smallcap 600 receded 0.6% to 964.
In London, the FTSE closed flattish, up 1 point at 7,471.3. The French CAC ended 0.6% ahead at 5,563.1, and the German DAX jumped 0.4% to finish at 12,153.1.
10:15 am: Wall Street stumbles at the open as IBM drags down the Dow
Stocks ticked down at the open as the major indices misfired out of the gate.
Investors digested the latest round of reports Tuesday morning, including strong results from Morgan Stanley, United Continental Holdings and PepsiCo.
IBM, which posted a disappointing quarterly report late Tuesday, led the industrials to early losses. The stock fell 4.5%.
More broadly, earnings season is off to a roaring start. Around 84.6% of S&P 500 companies that have reported first-quarter earnings, beat Street expectations, according to FactSet.
Meanwhile, China released economic data Wednesday that calmed fears of a global economic slowdown. The country’s economy expanded 6.4% in the first quarter year-over-year, just ahead of the 6.3% expected by a Reuters poll.
Industrial production increased 8.5% year-over-year in March, and retail sales rose 8.7%, each beating estimates. Fixed asset investment advanced 6.3% year-over-year for the quarter, meeting expectations.
The Dow Jones Industrial Average lost 0.1%, 32 points, to 26,420.1. The Nasdaq ticked down 9 points to 7,991.3, and the S&P 500 was flattish at 2,903.6.
At the small-cap level, the Russell 2000 slipped 3 points to 1,579.7, and the S&P Smallcap 600 receded 0.2% to 968.
In London, the FTSE was flattish at 7,473. The French CAC was up 0.6% to 5,563.2, and the German DAX jumped 0.7% to 12,182.6.
7:37 am: Wall Street shares set to continue positive run as Chinese data surprises on the upside
Wall Street futures are pointing higher mid-week after a higher close as the latest data out of China showed positive signals.
The world's second biggest economy expanded by 6.4% in the first quarter this year, compared to a year ago, according to DDP data, beating economists' forecasts of 6.3%, taking the market by surprise.
Asian markets rise after upbeat Chinese GDP data https://t.co/djhUdgn9At
— Business Day (@BDliveSA) 17 April 2019
In Asian markets overnight, the Nikkei 225 index added over 56 points at 22,277, while the Shanghai Composite Index gained around nine at 3,263.
Stocks in Europe at the time of writing are mixed.
US markets closed up on Tuesday, with a bump from Qualcomm Inc (NASDAQ:QCOM) helping, as the chipmaker’s stock exploded 23% after settling its royalty battle with Apple Inc (NASDAQ:AAPL).
The Dow Jones Industrial Average rose 67 points, to close at 26,452. The Nasdaq finished up 24 at 8,000 points, and the S&P 500 Index added almost 1.5 points to settle at 2,907.
In futures trade today, the Dow Jones is up 27 points; the Nasdaq is ahead by around 20 and the S&P 500 futures are pointing up five points.
On the macro front later this morning, the US Energy, Information Administration will publish crude stockpile data. Traders will also be looking at new wholesale inventory data.
In earnings, big banking behemoth Morgan Stanley (NYSE:MS) will release earnings before the opening bell in New York. Las Vegas Sands (NYSE:LVS) and Pier 1 Imports (NYSE:PIR) will follow after the close.