By Anora Mahmudova and Sara Sjolin, MarketWatch
GM, Procter & Gamble fall after missing earnings
expectations
U.S. stocks traded modestly lower on Thursday amid a cascade of
earnings reports and weaker-than-forecast economic reports.
The S&P 500 (SPX) was off about a point, or 0.1%, to 2,105.
The Dow Jones Industrial Average (DJI) dropped 30 points, or 0.3%,
to 17,990. A 4% decline in 3M's shares was contributing heavily to
Dow's losses. The Nasdaq Composite (RIXF) was flat at 5,034, within
a striking distance from its record level reached 15 years ago.
Kim Caughey Forrest, senior analyst at Fort Pitt Capital, noted
that sideways market moves suggest expectations going into the
earnings season weren't low enough.
"Some companies are beating expectations by a narrow margin, but
even the ones who are missing estimates are not punished as much
because of low-interest-rate environment," Forrest said suggesting
that companies' continued ability to service their debt is covering
up their poor performance.
Among the hardest hit sectors today was home builder industry.
PulteGroup Inc. shares plunged 7.8% after a surprise drop in
profit. The S&P 500 home-building subsector fell 4.7%.
Data: Sales of new single-family homes tumbled 11.4% to an
annual rate of 481,000 in March, pulling back from a seven-year
high reached a month earlier and hitting the slowest pace since
November, according to government data released Thursday. However,
economists caution that the large margin of error make single-month
readings less reliable.
The number of people who applied for regular state
unemployment-insurance benefits ticked up 1,000 to 295,000 in the
week that ended April 18, signaling a low level of layoffs,
according to government data released Thursday.
Markit's preliminary report on the manufacturing purchasing
managers index for April fell to 54.2 in April from 55.7 in March.
Flash PMIs out of Europe released earlier on Thursday showed growth
weakened at the start of the second quarter
(http://www.marketwatch.com/story/eurozone-economy-slows-in-april-pmis-show-2015-04-23).
Earnings: On an exceptionally busy day for earnings, shares of
eBay Inc. (EBAY) jumped 3.5% after earnings showed its PayPal unit
brought more revenue that its core marketplace division.
General Motors(GM.XX) earnings disappointed, hurt by stronger
currency and weaker overseas performance. Shares fell 3.8%, making
it the top decliner on the S&P 500.
Caterpillar Inc.(CAT) posted much better-than-expected earnings
and lifted its full-year outlook. Shares initially rose as much 2%,
but at last check were down 0.8%.
Dunkin' Brands Group Inc.(DNKN)reported first-quarter earnings
above analyst forecasts and boosted its 2015 outlook
(http://www.marketwatch.com/story/dunkin-brands-boosts-2015-outlook-2015-04-23),
sending the shares up 7%.
Tech giants fill out the results docket after the market closes.
Google Inc.(GOOGL) is forecast to post first-quarter earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-googles-earnings-2015-04-20)
of $6.61 a share, while Microsoft Corp. (MSFT) is expected to
report earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-microsofts-earnings-2015-04-21)
of 51 cents a share in the first quarter.
Amazon.com Inc.(AMZN) is likely to post a loss
(http://www.marketwatch.com/story/what-to-watch-for-in-amazons-earnings-2015-04-20)
of 16 cents a share in the first quarter.
Movers and shakers:Qualcomm Inc.(QCOM) lost 2.4% after the chip
maker late Wednesday reported a slump in second-quarter earnings
(http://www.marketwatch.com/story/qualcomm-beats-earnings-cuts-semiconductor-outlook-2015-04-22).
AT&T Inc. (T) rose 2.7% on a slightly better-than-expected
earnings report issued on Wednesday
(http://www.marketwatch.com/story/att-adds-441000-core-wireless-subscribers-2015-04-22-164851122).
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/gm-google-microsoft-amazon-starbucks-earnings-in-focus-2015-04-23)
Other markets:European stocks traded mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid) after the
disappointing PMIs. Investors are also closely monitoring news
about Greece's reform talks ahead of a key meeting of eurozone
finance ministers on Friday. Greek Prime Minister Alexis Tsipras is
due to meet German Chancellor Angela Merkel in Brussels on
Thursday.
Asian markets closed mixed
(http://www.marketwatch.com/story/hong-kong-stocks-slip-after-soft-china-data-2015-04-23),
while metals traded higher. Oil prices
(http://www.marketwatch.com/storyno-meta-for-guid)(CLM5) rose and
the ICE dollar index
(http://www.marketwatch.com/storyno-meta-for-guid)(DXY) was flat
around 97.96.
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