While you were sleeping: Dow steady as most stocks slide on mixed results
Mixed corporate earnings results and declining bond yields helped pull down most stocks on Wall Street..
Shares of Priceline Group and TripAdvisor posted double-digit declines to help lead the S&P 500 lower after the online travel companies disappointed investors with their quarterly results.
Meanwhile, falling bond yields pressured shares of banks, while several proposed deals continued to move chip makers and media companies.
“Put together a lot of speculative M&A [merger and acquisition] transactions and earnings and you get a good cocktail to move markets,” Michael Scanlon, a portfolio manager at Manulife Asset Management, told the Wall Street Journal.
At the close, the Dow Jones Industrial Average had risen 8.81 points, or 0.04%, to 23,557.23 after being in the red for most of the session. The S&P 500 was down less than a point, ot 0.02%, at 2590.64, halting a five-day rally. The Nasdaq Composite was down 0.3% at 6767.78.
In deal news, 21st Century Fox added 1.1% after reports that Walt Disney Company had held talks to purchase a large chunk of the company’s entertainment business, though those talks have since cooled. Shares of Disney added 1%.
In 2013, media mogul Rupert Murdoch split his media empire into News Corp, owner of the Wall Street Journal and other publishing businesses, and 21st Century Fox, home to the major entertainment assets.
TripAdvisor shed 23% after the online travel booking company missed revised sales estimates as it struggled with users’ shift toward mobile. Priceline, which lost 12% in recent trading, lowered its profit outlook for the remainder of the year, overshadowing better-than-expected sales and earnings.
The yield on the 10-year US Treasury note fell to 2.309% from 2.318% on Monday. Declining bond yields don’t bode well for banks’ profits.
Broadcom shares fell 2.2% as investors continued to digest the chip maker’s $US105 billion bid for Qualcomm , which gained more than 2.5%.
In Europe, the Stoxx fell 0.5%. The UK’s FTSE 100 fell 0.65%, France’s CAC 40 fell 0.5% and Germany’s DAX was down 0.7%.