US Stocks Slip 10/18 09:48
Stocks are dropping on Wall Street Friday, weighed down by lossed in tech
NEW YORK (AP) -- Stocks are slipping in early trading on Wall Street Friday,
weighed down by losses in technology companies. The market is still on track
for its second weekly gain after three straight losing weeks.
Investors are also absorbing the latest economic data showing that growth in
China sank to a new multi-decade low.
Some stocks rose following solid earnings reports. ETrade climbed 4.7% after
reporting surprisingly good third-quarter profit. Oilfield services company
Schlumberger rose 3% and lifted energy stocks.
KEEPING SCORE: The S&P 500 index fell 0.2% as of 10:24 a.m. Eastern time.
The Dow Jones Industrial Average fell 93 points, or 0.3%, to 26,932. The Nasdaq
lost 0.5%. The Russell 2000 index of smaller stocks fell 0.4%.
The yield on the 10-year Treasury held steady at 1.75%.
WINNING WEEK: The market has been choppy all week as investors shift their
focus to the latest round of corporate earnings. Stocks are still higher for
the week thanks to a big gain on Tuesday, when several major banks released
impressive results, including JPMorgan Chase.
The S&P 500 is on track for a 0.8% gain this week following last week's 0.6%
Smaller stocks are once again set to outpace the broader market in a sign
that investors are growing more confident. The Russell 2000 is on track for a
1.7% gain this week after rising 0.8% last week.
OVERSEAS: Markets in Asia fell. China's economic growth sank to a 26-year
low in the latest quarter and shoved the Shanghai Composite index 1.3% lower.
The world's second-largest economy is dealing with a slowdown in consumer
demand and economic growth brought on partly by the damaging trade war with the
European markets were flat. Britain's Parliament is preparing for a vote on
the latest proposed deal covering its exit from the European Union. Britain is
set to leave the trading block on Oct. 31. The vote is expected to take place
at a rare sitting of Parliament on Saturday.
EARNINGS: Investors mostly applauded the opening round of company earnings
this week and temporarily brushed aside worries over the ongoing U.S.-China
trade war. Health insurer UnitedHealth Group reported solid earnings, as did
The early round of mostly good results could help calm investors' fears
about another dismal forecast for earnings growth. Analysts expect profit to
contract by nearly 5% for companies within the S&P 500, according to FactSet.
But, forecasts for declines in the first and second quarters were tempered as
reporting progressed and companies finished those earnings seasons with tiny
SATISFYING SODA: Coca-Cola rose 1.6% after the company edged out Wall
Street's third-quarter revenue forecasts on improved sales of Coca-Cola Zero
Sugar and other drinks.