Financial Markets 10/27 12:18
(AP) -- Stocks wobbled in midday trading on Wall Street Wednesday, a day
after the S&P 500 and the Dow Jones Industrial Average set their latest record
The S&P 500 fell 0.1% as of 11:53 a.m. Eastern. The Dow Jones Industrial
Average fell 126 points, or 0.4%, to 35,631 and the Nasdaq rose 0.4%.
The S&P 500 had more losers than gainers, but several big technology and
communications companies gained ground and helped counter losses elsewhere.
Microsoft rose 4.1% after reporting a 24% surge in profits last quarter as its
cloud computing business bounded ahead. Chipmaker Advanced Micro Devices rose
1.3% after reporting encouraging earnings.
Google's parent company, Alphabet, rose 4.8% as a continued rebound in
digital ad spending bolstered surprisingly good financial results.
A mix of companies that rely on direct consumer spending also gained ground.
Domino's Pizza rose 2.5%.
Bond yields fell and weighed down banks, which rely on higher yields to
charge more lucrative interest on loans. The yield on the 10-year Treasury fell
to 1.56% from 1.61% late Tuesday. JPMorgan Chase fell 2.2%,
U.S. crude oil prices fell 1.6% and pushed energy stocks lower. Exxon Mobil
Investors are busy reviewing the latest round of earnings from a variety of
well-known companies. McDonalds rose 2.2% after reporting solid financial
results as an easing of business restrictions helped sales growth. Coca-Cola
rose 1.8% as sales grew along with the reopening of many venues and businesses
over the summer.
General Motors fell 5.3% after reporting mixed financial results as the
broader auto industry continues to face production problems because of a chip
shortage. Rival Ford will report its results later Wednesday.
The steady flow of corporate report cards will continue Thursday with
industrial bellwether Caterpillar and technology giant Apple. Amazon and
Starbucks will also report their results on Thursday.
Outside of earnings, investors are also awaiting the latest update on U.S.
economic growth when the Commerce Department releases its report on
third-quarter gross domestic product on Thursday.
Markets in Asia closed lower as a Chinese newspaper warned that more real
estate developers are likely to default on bonds. Investors are watching
whether one of the biggest developers, Evergrande Group, can avoid a default on
2 trillion yuan ($310 billion) of debt.
European markets were mostly lower.