U.S. stocks fell on mixed earnings reports and statistics


Moscow. October 28. U.S. stocks on Tuesday fell due to the mixed financial reports and economic data once again raised a wave of concerns about the sustainability of global economic growth, reported Bloomberg.

In addition, market participants await the outcomes of the October meeting of the Federal reserve system (the fed), which will end on Wednesday. Although analysts do not expect changes in interest rates, they are interested in possible hints of further steps the U.S. Central Bank.

“We are in the “wait and see” before the meeting of the fed, said analyst global markets JonesTrading Institutional Services LLC Joseph Abbasi. In early trading we saw weak data from the USA, and also more negative than positive reporting”.

The volume of orders for durable goods in the U.S. in September fell by 1.2% compared with the previous month, after falling 3% in August. Orders excluding planes and military hardware (an indicator of business investment) fell by 0.3%, while experts expected increase of 0.2%.

The consumer confidence index in the U.S. in October fell to its lowest since July 97.6 points, said research organization Conference Board. The September value of the indicator was revised to 102,6 point with 103 points. Analysts had predicted less significant decline in the current month to 102.9 points from the previously announced September.

Paper IBM Corp. slipped 4.4% to five-year low. The company announced that the SEC was conducting research on some of its deals in the US, the UK and Ireland.

Price of Ford Motor stock fell 5.2%. The automaker did not meet market forecasts for adjusted profit in the last quarter.

Carmaker General Motors lost 2% of market value due to the recall of 1.4 million vehicles due to the threat of fire.

The price of securities a world leader in the field of Express delivery company UPS Inc. dropped 2.9%, as its revenues in July-September was worse than market expectations.

Share prices of coal companies Arch Coal fell by almost 23% after JPMorgan Chase analysts downgraded the recommendation for them to “sell” from “neutral level”.

At the same time, the capitalization of Pfizer Inc. rose by 2.5%. The largest pharmaceutical company in the world in the third quarter made a profit and revenue above market expectations thanks to demand for innovative drugs.

Quotations ADR Alibaba Group increased by 4%. The Chinese Internet giant has increased net profit in the last quarter by 7.5 times, revenue by 32%.

According to analysts surveyed by Bloomberg, on average, profits of companies from the calculation of the index Standard & Poor’s 500 over the past quarter decreased by 6.1%, with the most significant drop has showed the energy and raw materials companies.

Among the reported companies, 74% of the profits were better than expected, however, in 57% of cases the revenue was below expectations.

The Dow Jones Industrial Average on Tuesday fell on 41,62 points (0,24%) – to 17581,43 item.

Standard & Poor’s 500 at the end of trading fell by 5.29 points (0,26%), amounting to 2065,89 item.

The value of the Nasdaq Composite index for the day was decreased by 4.56 points (0.09 per cent) to 5030,15 item.