US stocks end in the red

Earning reports paint a mixed picture

U.S. stocks closed lower on Wednesday, 24 April 2019, a day after the S&P 500 and Nasdaq carved out their first records in months, following earnings from high-profile companies, including Dow components Boeing and Caterpillar, that offered a mixed picture of American corporations.

The Dow Jones Industrial Average fell 59.34 points, or 0.2%, to 26,597.05, while the S&P 500 index shed 6.43 points, or 0.2%, to 2,927.25. The Nasdaq Composite Index dropped 18.81 points, or 0.2%, to 8,102.01. During the session, the tech-heavy index set a new intraday high of 8,139.55.

There was some defensive positioning in the market in front of key earnings reports and a policy decision from the Bank of Japan. U.S. Treasuries saw increased buying interest, which drove yields lower across the curve and underpinned the outperformance of the rate-sensitive real estate and utilities sectors.

At the same time, a further decline in Germany's Ifo Business Climate Index contributed to some cautious trading and weakness in the euro, which fell 0.6% against the dollar to 1.1157.

Setting the tone on Wednesday were earnings from heavyweight Dow components Boeing and Caterpillar with Boeing shares edging higher despite the aerospace firm announcing core earnings per share that fell short of Wall Street expectations, while suspending guidance for 2019 due to uncertainty surrounding its 737 Max aircraft and pausing its share-repurchase program. Meanwhile, Caterpillar reported first-quarter earnings that topped estimates thanks to a tax benefit and higher-than-expected sales. Shares still fell 3%.

The ICE U.S. Dollar Index, a key gauge of the greenback against six major rivals, was up 0.4% at 97.987, trading at its highest since June 2017. A stronger U.S. unit can make buying the buck-pegged commodity comparatively more expensive for investors using other currencies.

U.S. economic data was sparse on Wednesday. The weekly MBA Mortgage Applications Index fell 7.3% following a 3.5% decline in the prior week.

Bullion prices ended higher at Comex on Wednesday, 24 March 2019. Gold futures ended higher on Wednesday, rebounding from their lowest levels of the year, as a rally in stocks that took two of the three main U.S. equity indexes to records cooled, providing support for the haven metal. However, a perky dollar, hovering around its highest level in about 22 months kept prices for the metal off the session's high.

Gold for June delivery rose $6.20, or 0.5%, to settle at $1,279.40 an ounce. The yellow metal had now posted gains in two of the past seven sessions. May silver added 12.5 cents, or 0.9%, to $14.916 an ounce.

Looking ahead, investors will receive the weekly Initial and Continuing Claims report and Durable Orders for March on Thursday.

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