ZCZC
BCN-16
US-STOCKS-MARKETS
Nasdaq falls ahead of big tech earnings
NEW YORK, Jan 30, 2019 (BSS/AFP) – Shares of large tech companies tumbled
Tuesday ahead of big earnings announcements from the sector as US stocks
finished a choppy session mostly lower.
The tech-rich Nasdaq Composite Index finished 0.8 percent lower at
7,028.29.
The Dow Jones Industrial climbed 0.2 percent to 24,579.96, while the
broad-based S&P 500 shed 0.2 percent to 2,640.00.
The lackluster session came after the Conference Board reported the third
straight month of declining consumer confidence in January.
Apple, which has warned of weak sales in China, dropped 1.0 percent ahead
of its earnings release later Tuesday. Amazon, Microsoft, Facebook all lost
at least two percent ahead of results later this week.
The declines suggested investors remain wary of the sector after chip
company Nvidia on Monday also cited weakness in China in cutting its outlook.
Besides a heavy earnings calendar, investors are anticipating Wednesday’s
Federal Reserve policy announcement.
The Fed has in recent weeks signaled a cautious approach to lifting
interest rates, a key factor in the market’s rally since late December.
Markets are also looking ahead the resumption of trade talks between China
and the United States.
Some analysts viewed the prospects for a Beijing-Washington agreement as
dimming after the US Justice Department on Monday announced criminal charges
against Chinese telecommunications giant Huawei.
But Treasury Secretary Steven Mnuchin said the Huawei matter was
unconnected to the trade negotiations, adding in a Fox Business interview he
expected “significant” progress in the talks.
Among companies reporting results, 3M jumped 1.9 percent as it reported
that fourth-quarter profits more than doubled to $1.3 billion. Analysts said
the results suggested the industrial company was successfully passing off
higher material costs through price increases.
But Harley-Davidson dropped 5.0 percent after it forecast 2019 motorcycle
sales of between 217,000 and 222,000 — below the 2018 count and a sign the
company still faces challenges in finding new consumers.
BSS/AFP/HR/0945