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Wall Street dips as weak earnings dampen surge from midterm elections

Reuters 

By Sruthi Shankar

(Reuters) - U.S. stocks edged lower on Thursday, as a clutch of weak earnings reports punctured a rally from the previous session, which was spurred by the outcome for midterm elections.

Ltd, Co and were the biggest losers on the 500, all falling after reporting disappointing quarterly results.

dropped 7.1 percent after the chipmaker forecast sales revenue for the holiday shopping quarter below analysts' estimates, as it took a hit from the loss of chip sales to Apple Inc.

Stocks had gained more than 2 percent on Wednesday after Americans voted for a divided Congress, which was largely anticipated by investors who raised bets that it would be positive for stocks.

While it could make it harder for to push through new legislations such as additional tax cuts, investors are hoping for compromise on policies such as increasing infrastructure spending.

Despite the dip in markets on Thursday, traders said investors were largely positive about the election outcome.

"The general sentiment is I should be buying into a split because it probably means nothing will happen out of Washington," said Robert Pavlik, at in

The Fed, which is set to release its rate decision at 2:00 pm ET, is expected to leave interest rates unchanged, but the statement that follows could lay the ground for a fourth rate hike in December and for the next year.

A steep selloff in October has taken the 500 down about 4 percent from its record high, with investors worried that the U.S. could gather more steam and encourage the Federal Reserve to raise interest rates further.

However, some of those worries were put to rest by Wednesday's election results, which reduced the odds of further corporate tax cuts by the

At 10:01 a.m. EDT the was up 6.80 points, or 0.03 percent, at 26,187.10, the 500 was down 2.86 points, or 0.10 percent, at 2,811.03 and the was down 9.52 points, or 0.13 percent, at 7,561.23.

Eight of the 11 S&P sectors were lower, with slight gains seen in the defensive utilities, and consumer staples.

fell 12.3 percent after the missed third-quarter profit estimate and warned of a slowdown in the key market

D.R. Horton dived 9.4 percent after the largest U.S. homebuilder warned of rising home prices and higher mortgage rates weighing on demand and reported a quarterly revenue that missed estimates.

The index fell 2.8 percent, as other housing stocks such as and fell.

Co dropped 10.7 percent after the generic drugmaker cut full-year earnings forecast on lowered expectations from its

The top gainer on the was TripAdvisor Inc, which jumped 17 percent after the reported better-than-expected third-quarter profit.

Declining issues outnumbered advancers for a 1.20-to-1 ratio on the NYSE and for a 1.08-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and two new lows, while the Nasdaq recorded 49 new highs and 41 new lows.

(Reporting by in Bengaluru; Editing by Arun Koyyur)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 20:48 IST
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