The Dow Jones Industrial Average closed at 27,001.98 on Wednesday with a loss of 22.82 points or -0.08%. The S&P 500 closed at 2,989.69 for a loss of 5.99 points or -0.20%. The Nasdaq Composite closed at 8,124.18 for a loss of 24.52 points or -0.30%. The VIX Volatility Index was higher at 13.68 for a gain of 0.14 points or 1.03%.
Wednesday’s market movers
U.S. indexes closed lower Wednesday after a four-day rally with several uncertainties, some key economic reports and an earnings miss from IBM. Investors were doubtful of China’s commitment to a phase one deal and more agricultural purchases. Investors were also watching Brexit negotiations after talks yesterday did not yield any major resolutions.
Top earnings results Wednesday included the following:
- Bank of America (BAC, Financial): Revenue of $22.8 billion increased 0.4% year over year and beat estimates by $70 million. Third-quarter GAAP earnings of 56 cents per share beat estimates by 5 cents and non-GAAP earnings of 75 cents beat estimates by 7 cents.
- Netflix (NFLX, Financial): Revenue of $5.25 billion increased 31.3% year over year and was in line with estimates. Third-quarter GAAP earnings of $1.47 per share beat estimates by 42 cents.
- IBM (IBM, Financial): Revenue of $18.03 billion decreased 3.9% year over year and missed estimates by $190 million. Third-quarter GAAP earnings of $1.87 per share missed estimates by 35 cents and non-GAAP earnings of $2.68 beat estimates by 2 cents.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index increased 0.5% following a 5.4% increase. The MBA’s average 30-year mortgage rate increased to 3.92% from 3.90%.
- Retail sales decreased 0.3% in September and fell to a year-over-year increase of 4.1%, down from 4.4%.
- Business inventories were unchanged in August following an increase of 0.3%.
- The NAHB Housing Market Index increased to 71 from 68.
- The Federal Reserve’s Beige Book showed some signs of economic slowing.
- The Treasury’s International Capital report showed overall net capital flows of $70.5 billion in August and foreign bond investments of -$30.5 billion.
- The Weekly EIA Petroleum Status report showed crude oil inventory increasing 10.5 million barrels following an increase of 4.13 million barrels.
In the S&P 500, the energy and technology sectors led losses. In the Dow Jones Industrial Average, the following stocks led losses:
Small-cap stocks
In small caps, the Russell 2000 closed at 1,525.06 for a gain of 1.76 points or 0.12%. The S&P 600 closed at 945.05 for a gain of 2.73 points or 0.29%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,716.51 for a loss of 0.41 points or -0.01%. The Dow Jones U.S. Small-Cap Value Index closed at 9,356.94 for a gain of 13.22 or 0.14%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,922.40 for a loss of 1.91 points or -0.099%; the S&P 100 at 1,326.73 for a loss of 1.70 points or -0.13%; the Nasdaq 100 at 7,920.21 for a loss of 22.64 points or -0.29%; the Russell 3000 at 1,748.90 for a loss of 4.07 points or -0.23%; the Russell 1000 at 1,650.31 for a loss of 4.23 points or -0.26%; the Wilshire 5000 at 30,516.31 for a loss of 69.32 points or -0.23%; and the Dow Jones U.S. Select Dividend Index at 721.52 for a loss of 0.62 points or -0.086%.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
