By Dan Strumpf And Saumya Vaishampayan
U.S. stocks slipped on Thursday, weighed down by soft economic
reports overseas and a batch of disappointing earnings reports.
The Dow Jones Industrial Average lost eight points to 18028 in
morning trade. The S&P 500 index shed a point, or 0.1%, to
2107. The Nasdaq Composite Index lost three points, or 0.1%, to
5032.
Stocks rebounded from their opening lows, but remained in
negative territory through the morning. Data showing the eurozone's
economy slowed in April sent European stocks lower.
Meanwhile, Chinese manufacturing activity fell to a one-year
low, another sign of a slowdown in the world's second-largest
economy. A mixed bag of corporate earnings reports failed to cheer
investors.
"There isn't rip-roaring news this morning," said Michael
Antonelli, equity sales trader at Robert W. Baird in Milwaukee.
"We're still sitting near the highs, but there hasn't been enough
to push it through yet. The earnings haven't been good enough."
While the Dow and S&P have minted several records in recent
years, the Nasdaq has yet to breach its all-time high from the tech
bubble. The tech-heavy index crossed 5000 for the first time since
2000 on March 2 and made another run at its record in late March.
On Wednesday, the Nasdaq came within 14 points of the record of
5048.62.
Stocks broadly have bounced in a narrow range over the last two
months, with the Dow and S&P trading near all-time highs last
reached in early March. Shares have been reined in by worrisome
signs of slowing growth in U.S. and tepid corporate profits.
A torrent of mixed first-quarter earnings reports weighed on
investor sentiment Thursday. Shares of General Motors Co. fell 3.3%
after the auto maker reported a $945 million net profit in the
first quarter, but its operating performance fell short of
expectations.
Procter & Gamble Co. stock lost 1% after the consumer
products maker said sales fell 7.6% in the March quarter due to the
strong dollar
Shares of AT&T Inc. gained 2.7% after first-quarter earnings
fell but still came in better than expectations.
Shares of some high-profile technology companies fell after they
reported disappointing earnings. Qualcomm Inc. shares fell 2.4%
after the chip maker reported a 46% drop in second-quarter profit
late Wednesday.
Texas Instruments Inc. shares lost 7.7% after the electronics
maker reported weak second-quarter guidance and disappointing
sales.
"We know it's not easy for U.S. corporations to increase
earnings meaningfully at this point in the cycle," said Dan Morris,
global investment strategist at TIAA-CREF, which manages $611
billion. Companies had been looking to sell more products in
Europe, where the European Central Bank is attempting to kick-start
growth, he said. "That was one of your bright spots, and that
bright spot just got a little less bright," he added.
In Europe, Germany's DAX fell 1.3% and France's CAC 40 lost
0.8%.
In economic news, U.S. jobless claims rose by 1,000 to 295,000
in the week ended April 18, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal expected 290,000
claims.
The yield on the 10-year Treasury note was at 1.974%, compared
with 1.972% on Wednesday. Yields rise as prices fall.
Gold futures added 0.1% to $1187.60 an ounce. Crude-oil futures
rose 2.2% to $57.42 a barrel.
Write to Dan Strumpf at daniel.strumpf@wsj.com and Saumya
Vaishampayan at saumya.vaishampayan@wsj.com
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