NY: Wall St. Is Mixed Amid Lackluster Earnings Reports
United States markets were mixed in early trading on Tuesday after several companies reported weak results. The early declines came after three straight gains for the market. European stock markets were steady as the recent Greek relief rally came to an end.
KEEPING SCORE The Dow Jones industrial average fell 0.63 percent, and the Standard & Poor’s 500-stock index was down 0.02 percent. The Nasdaq composite index gained 0.04 percent.
EARNINGS ROUNDUP Shares of IBM sank 5 percent after the company reported revenue that fell short of analysts’ expectations. Verizon and United Technologies also posted revenue that did not meet forecasts. Harley-Davidson stock jumped 4 percent after its earnings beat estimates.
EUROPEAN MARKETS In Germany, the DAX was flat, and in France, the CAC 40 rose 0.1 percent. The FTSE 100 was also flat in Britain.
GREECE RETREAT For weeks, the Greek crisis has been the main driver in financial markets, but now that discussions over a third bailout are set to begin, fears over the country’s exit from the euro have faded — for a while at least.
ANALYST’S TAKE “Not too long ago, traders were sick of hearing about Greece, but now, they look back on the frenzied activity of those weeks with a wistful sigh,” said David Madden, a market analyst at IG.
EARNINGS OUTLOOK Now that the Greek crisis is fading and China’s stock market plunge has abated, investors are taking the pulse of the global economy in the form of second-quarter corporate results. The main earnings release later will be from Apple, but that will come after markets close. “The stock is lingering only a few dollars away from its all-time highs, and could easily surpass that record if Apple announces the kind of dazzling figures it is more than capable of,” said Connor Campbell, a financial analyst at Spreadex.
TOSHIBA TROUBLES During Asian trading hours, the main focus was on the Japanese technology company Toshiba after its chief executive and eight other executives resigned to take responsibility for doctored books that inflated profits by 152 billion yen, or $1.2 billion, over several years. Still, Toshiba shares ended up 6 percent, recovering recent losses, as investors took the resignations as a sign that the company might use the opportunity to clean up its act.
ASIA’S DAY The Nikkei 225 closed up 0.9 percent in Japan, while in Hong Kong, the Hang Seng gained 0.6 percent. The Shanghai Composite Index added 0.6 percent in China. The Kospi was up 0.5 percent in South Korea. In Australia, the S.&P./ASX 200 gained 0.4 percent.
ENERGY Benchmark United States crude was flat at $50.15 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many American refineries, fell 10 cents to $56.55 in London.
CURRENCIES AND BONDS It was a similarly subdued feel in foreign exchange markets. The euro was up 0.3 percent at $1.0864, while the dollar was steady at 124.34 yen. Bond prices fell. The yield on the 10-year Treasury note rose to 2.38 percent.
