Translate This Page

Saturday, October 27, 2012

Dow, S&P 500 slide more than 1% for week (ext.CNN)

NEW YORK (CNNMoney) -- U.S. stocks ended a choppy session little changed Friday, but logged another week of losses amid lackluster corporate earnings.

More than half of the S&P 500 companies have reported third-quarter financial results so far, and while more than 70% have delivered earnings above Wall Street's estimates, only 36% have topped sales forecasts, according to FactSet Research. That is well below the average of 55% that typically beat revenue estimates.

Moreover, companies have been tepid in their outlooks for the remainder of the year.

The dull results have pushed investors to the sidelines. In fact, all three indexes posted their second weekly loss in three weeks. The Dow Jones industrial average declined 1.8%, the S&P 500 slid 1.5%, and the Nasdaq dropped 0.6% during the week.

In addition, traders have become risk-averse ahead of the U.S. presidential elections, while concerns about the fiscal cliff continue to weigh on the market. The uncertainty has stocks on track to finish October in the red, logging their first monthly loss since May.

Trading on Friday was choppy, as investors remained focused on earnings but also digested a mixed bag of economic data.

A stronger-than-expected report on U.S. economic growth was encouraging, but a reading on consumer sentiment fell short of expectations.

Gross domestic product, the broadest measure of economic activity, rose at a 2% annual rate in the third quarter, according to government data. The figure was higher than the 1.7% rate economists surveyed by CNNMoney had forecast. GDP grew at a rate of 1.3% in the second quarter.

While the University of Michigan's index measuring consumer sentiment improved in October to 82.6 from the prior month, it was revised down from a preliminary reading of 83.1, disappointing analysts who were expecting the index to remain unchanged

After flipping between small gains and losses through the trading day, the Dow and Nasdaq finished up less than 0.1%, while the S&P 500 shed 0.1%.

Currencies and commodities: The dollar was little changed against the euro and the British pound, but fell against the Japanese yen.

Oil for December delivery rose 23 cents to settle at $86.28 a barrel.

Gold futures for December delivery fell $1.10 to settle at to $1,711.90 an ounce.

1 comment:

Anonymous said...

That is a really good tip especially to those new to the blogosphere.

Short but very accurate information… Many thanks for sharing this one.
A must read post!
Here is my web-site ; GFI Norte