Stocks Waver on Disappointing Earning Reports and ECB Stimulus Uncertainty

Stocks Waver on Disappointing Earning Reports and ECB Stimulus Uncertainty

Corporate earnings drove some of today's biggest moves in stocks, though major US indexes remain little changed overall in the early afternoon, as investors mulled over both disappointing quarterly results and forecasts from several big companies and a mixed stimulus message from the ECB's Mario Draghi which spurred a slide in the Euro.    

Image by Getty

Near midday, the Dow Jones industrial was flat, and the S&P 500 was down 0.11%. The Nasdaq also slid 0.17%.

Equities fell as lackluster forecasts from Nestle SA to EBay Inc. outweighed optimism with American Express Co. and Deutsche Lufthansa AG’s projections. Shares of the e-commerce giant eBay slumped 10.7% after the company reported disappointing fourth-quarter results. Verizon Communications stock also slid 2.6% after the company posted weak quarterly revenue as it added far fewer wireless and internet service subscribers than a year ago. Shares of rival AT&T, fell too, shedding 2% 

Shares of the Dunkin’ Brands Group fell 3.1% after the chain’s latest quarterly revenue snapshot fell short of Wall Street’s expectations. The company also cut its forecast for sales growth. And, American Airlines stock slid 1% after the company said its latest quarterly earnings fell because of higher labor costs and declining revenue.

The number of Americans seeking unemployment benefits rose to the highest level in five weeks but still remained close to the recent 43-year lows. Weekly applications for jobless benefits rose by 13K last week to 260K the Labor Department reported today. That was the highest level since an identical 260K claim applications were filed the week of Sept. 10. Since that time, claims had fallen to the lowest levels since November 1973. Even with last week's gain, claims, which are a proxy for layoffs, remain at levels indicating that workers are enjoying job security despite sluggish economic growth.

The euro fell after Mario Draghi said the region’s central bank hasn’t discussed extending or tapering stimulus. The European currency slid to the lowest since June, while German bond yields fell below zero on speculation traders will have to wait until at least December for news on policy changes. Oil also sank as Russia’s largest oil company said the country could boost production and Nigeria lowered prices for its crude.



This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.