- IBM tumbles after missing quarterly revenue estimates
- AT&T Grows As It Adds More Wireless Subscribers
- Indices: Dow down 0.15%, S&P down 0.04%, Nasdaq up 0.19%
October 21 (Reuters) – U.S. stock indices remained subdued on Thursday as IBM losses put pressure on tech stocks as investors focused on the impact of supply chain disruptions and labor shortages. work on corporate profits.
The Dow Jones Industrials Average (.DJI) retreated after hitting an intraday high in the previous session, while the benchmark S&P 500 (.SPX) was about 15 points lower than its high in early September.
“Stocks are climbing to new highs and any time the market is trading at or near its all-time high, it’s not uncommon to see a little more intraday volatility… and investors shouldn’t be concerned about this,” said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
Eight of the top 11 sectors of the S&P 500 were trading lower, with tech stocks (.SPLRCT) weighing the most.
IBM (IBM.N) fell 6.8% after missing market estimates for quarterly revenue as its managed infrastructure business suffered from lower orders. Read more
Investors are watching closely the growth prospects of companies facing rising costs, labor shortages and supply chain disruptions, with analysts expecting corporate profits in the S&P 500 are up 33.7% from the previous year, according to data from Refinitiv.
“Large parts of the S&P will not be affected – software, healthcare, real estate, utilities, energy, materials, finance would see none of this as a problem,” Mantione said. .
Tesla Inc (TSLA.O) erased early declines to rise 2.4% as investors digested the electric vehicle maker’s bullish earnings, despite the company’s warning of supply chain hurdles . Read more
Other mega-cap stocks including Facebook Inc (FB.O), Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) were mixed by early trading.
Data showed the number of Americans filing new jobless claims fell to a 19-month low last week, indicating a tight labor market, although a shortage of workers may keep pace moderate hiring in October. Read more
At 9:51 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 53.81 points, or 0.15%, to 35,555.53, the S&P 500 (.SPX) was down 1.72 point, or 0.04%, to 4,534.47 and the Nasdaq Composite (.IXIC) is up 28.53 points, or 0.19%, to 15,150.20.
AT&T Inc (TN) rose 0.7% after the carrier’s quarterly revenues and monthly additions to subscribers paying phone bills exceeded market expectations. Read more
American Airlines (AAL.O) rose 1.5% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co (LUV.N) edged down 0.4% even as it recorded a smaller loss in the third quarter.
HP Inc (HPQ.N) gained 5.6% as brokerages raised their share price targets after the personal computer and printer maker forecast an optimistic adjusted profit for the 2022 and increased its annual dividend.
Rising issues outnumbered declines by a 1.03-to-1 ratio on the NYSE and by a 1.34-to-1 ratio on the Nasdaq.
The S&P Index recorded 38 new 52-week highs and no new lows, while the Nasdaq recorded 58 new highs and 11 new lows.
Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Arun Koyyur
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