US stock market lower amid US-EU trade tensions
The U.S. stock market slipped Thursday after eBay forecast third-quarter profit below analysts’ estimates and investors worried about escalating trade tensions between America and the European Union.
The blue-chip Dow Jones Industrial Average fell 134.79 points, or 0.39%, to 25,064.50. The broader S&P 500 declined 11.13 points, about 0.4%, to 2,804.49. The tech-heavy Nasdaq Composite dropped 29.15 points, or 0.37%, to 7,825.30.
The decline follows a five-day rally and signals investors' focus on second-quarter earnings, which so far have topped analysts' expectations.
Just over 10% of the companies in the S&P 500 have reported earnings this season, but so far the results are well ahead of expectations.
IBM’s second-quarter earnings, released Thursday, topped Wall Street's expectations. The company's revenue rose 3.7% from a year earlier to $20 billion, the company's third consecutive quarter of revenue growth. Analysts polled by FactSet had expected $19.9 billion in revenue.
Shares of eBay tumbled nearly 10% after the company, which beat second-quarter expectations, lowered its guidance for third-quarter earnings. The stock is on pace for the largest percent decrease since Oct. 20, 2016, when it fell 10.76%.
Meanwhile, the decision by Comcast to walk away from its pursuit of 21st Century Fox entertainent assets left Disney poised to cinch its deal for those assets. Disney shares rose more than 2% after Comcast's announcement.
The latest economic data was encouraging: The number of Americans filing for first-time jobless benefits fell unexpectedly last week, hitting its lowest level in more than 48 year, the Labor Department said Thursday.
Asian stocks closed lower and the Stoxx Europe 600 index was down 0.1%, with media companies and basic resources companies among the laggards.
On Wednesday U.S. stocks posted mixed results in a tight range as the Dow and broader market edged up but the Nasdaq was mostly level. The Dow rose 79.4 points, or 0.32%, to 25,199.29. The S&P 500 added 6.07 points, or 0.2%, to 2,815.62. The Nasdaq edged less than a point lower to 7,854.44.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37775.38 | +22.07 | +0.06% |
| SP500 | S&P 500 | 5011.12 | -11.09 | -0.22% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15601.498878 | -81.87 | -0.52% |
For Google parent Alphabet Wednesday was a day of records. After being hit with a record $5 billion antitrust fine by the European Union, shares of the giant search engine soared Wednesday to a record.
European regulators say Google unfairly favored its own services by forcing smartphone makers to pre-install Android apps. Google will appeal.
In Asian markets, China’s Shanghai Composite closed the session 0.5% lower, and Hong Kong’s Hang Seng finished trading down 0.4%. Japan’s Nikkei ended the day down 0.13%. ending a four-day winning streak.
In Europe, London’s FTSE rose 0.22%, Germany’s DAX was 0.36% lower and France’s CAC was down 0.41%.
Fox Business' Mike Obel contributed to this story.