U.S. stocks edged lower on Thursday, weighed down by weak earnings from a handful of companies and after a U.S.-North Korea summit ended abruptly without a deal.
Booking Holdings Inc sank 9.8 percent after the online travel services provider missed quarterly earnings expectations. The company weighed the most on the consumer discretionary sector, which dropped 0.86 percent and was the biggest drag on the S&P 500 index.
HP Inc also tumbled 16 percent, pulling down the tech sector, after the company’s revenue fell short of analysts’ estimates.
Of the 11 major S&P 500 sectors, seven were lower. The energy sector was the biggest loser, with a 1.06 percent fall, as oil companies slipped due to a drop in crude prices. [O/R]
U.S. President Donald Trump said he had walked away from a nuclear deal at his summit with Kim Jong Un in Vietnam because of unacceptable demands from the North Korean leader to lift U.S.-led sanctions.
“Collapse in negotiations with North Korea seems to be weighing on sentiment to some extent,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
“There is very little substance that comes out of these things (the summit) but the market perceives that peace on the peninsula would be a good thing.”
At 10:11 a.m. ET the Dow Jones Industrial Average was down 26.66 points, or 0.10 percent, at 25,958.50, the S&P 500 was down 7.22 points, or 0.26 percent, at 2,785.16 and the Nasdaq Composite was down 33.45 points, or 0.44 percent, at 7,521.06.
Offering investors some comfort was the Commerce Department’s report that showed the U.S. economy slowed less than expected in the fourth quarter amid solid consumer and business spending.
“GDP number was solid as a rock, there are no signs of slowing down,” said Naeem Aslam, chief market analyst at Think Markets UK Ltd in London. “Most of the market participants were expecting a weak number and this is a surprise, a good surprise.”
Optimism on trade and dovish signals from the Federal Reserve had boosted equities from December lows in recent weeks, with the S&P 500 index roughly 5.2 percent below its record closing high hit in late September.
Among other stocks, Bristol-Myers Squibb Co rose 1.1 percent after top shareholder Wellington Management came out against the drugmaker’s $74 billion deal to buy biotech Celgene Corp. Celgene shares fell 8.8 percent.
Monster Beverage Corp jumped 10.3 percent after the beverage maker beat Wall Street estimates for quarterly revenue and profit.
Declining issues outnumbered advancers for a 1.61-to-1 ratio on the NYSE and for a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and two new lows, while the Nasdaq recorded 33 new highs and 18 new lows.