Dow Sells Off Sharply Into Close, Nasdaq, S&P Follow Suit
Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average fell on Wednesday after the blue-chip index closed lower for four of the past five trading sessions.
- Boeing Co. (BA) rose 3.4% after the aerospace giant topped third-quarter earnings forecasts and raised guidance for 2018.
- AT&T Inc. (T) fell 5.9% after the telecom giant posted third-quarter earnings that missed analysts’ estimates.
Wall Street Overview
Stocks fell on Wednesday, Oct. 24, with earnings from aerospace giant Boeing Co. failing to lift the Dow Jones Industrial Average amid an environment for investors that remains sensitive to a slowing world economy and rising volatility.
The Dow declined 605 points, or 2.4%, to 24,586, the S&P 500 fell 3.08%, and the Nasdaq slumped 4.43% as semiconductors and telecom stocks were the leading laggards. Stocks finished in the red on Tuesday, Oct. 23, but came off sharp lows suffered earlier in the session. The blame was placed mostly on disappointing earnings, slowing growth in China and worries over trade.
“It’s hard to get one’s arms around all of this selling and wonder at some point when it will be over. Each dip has been a trap door, as the sellers unload stocks into a torrent of selling. There is just no interest right now in owning equities,” said Robert Lang, a columnist for TheStreet’s Real Money premium site for active traders and co-manager of our Trifecta Stocks model portfolio.”
The aerospace giant also raised its 2018 forecast for earnings and revenue. Boeing said it expects revenue in a range of $98 billion and $100 billion, compared to Wall Street’s forecast of $98.48 billion. The company anticipates full-year adjusted of $14.90 and $15.10 a share, up from its prior forecast of $14.30 and $14.50 a share. The stock rose 1.35%.
AT&T Inc. (T) posted third-quarter adjusted earnings of 90 cents a share, missing estimates of 94 cents. Revenue in the quarter was $45.7 billion vs. expectations of $45.4 billion. The stock declined 8.09%.
AT&T said it had 38.8 million video subscribers at the end of the quarter, a figure that was roughly flat from the same period last year, while its North American wireless customer base grew 10.1% to 167.6 million.
United Parcel Service Inc. (UPS) posted third-quarter adjusted profit of $1.82 a share, meeting analysts’ estimates. Revenue of $17.44 billion came in below forecasts. The shipping giant said it expects fiscal 2018 adjusted earnings of $7.03 to $7.37 a share. UPS fell 5.54%.
Texas Instruments Inc. (TXN) tumbled 8.22% after the chipmaker posted weaker-than-expected third-quarter sales and cautioned it was heading into a “softer market” in the months ahead.
Texas Instruments said it sees revenue for the three months ended in December in the range of $3.6 billion to $3.9 billion, missing the Wall Street consensus of around $4 billion, and earnings of between $1.14 and $1.34 a share, which also were shy of the consensus forecast. The outlook followed third-quarter earnings that showed modest revenue growth of 3.4% to $4.26 billion but missed analysts’ forecasts.
Earnings reports are expected after the closing bell Wednesday from Microsoft Corp. (MSFT) , Advanced Micro Devices Inc. (AMD) , Ford Motor Co. (F) and Tesla Inc. (TSLA) .