Wall Street mixed as earnings fuel sentiment, but big tech companies put pressure
InvestingOnline.com
18/07/2018, 18:42The stocks market is trading mixed on Wednesday as investors are welcoming a solid earnings season but big tech companies and the energy sector are dragging indexes down. The DXY is falling after disappointing economic data.
The US Census Bureau reported that housing starts dropped 12.3% in June to reach an annual rate of 1,173.000. The number is well below the 2.2% decline expected by the market and the revised down number of May of 2.4% increase.
On Forex, the economic data dragged the DXY down with the unit erasing all its early gains. The DXY rallied overnight to a peak of 95.40, a fresh July high, but following the US housing data, the Greenback fell to trade as low as 94.95. It is now trading 0.04% positive at 95.05.
Back to stocks, Financials are positive as Morgan Stanley shares rallied by 3.5% after upbeat profits. Berkshire Hathaway is also jumping 4.7% on the day after news that the Warren Buffett company will use its current cap on share repurchases, paving the way for what could be significant buybacks.
On the other hand, big technology companies are suffering as Netflix is falling for the second day, Amazon is flat on the day, and NVDA is trading in consolidation mode.
The DJIA industrial is posting 0.26%, or 63.22 points, in gains so far today to a current 25,182.38. The S&P 500 index is advancing 0.14% or 3.81 points to 2,813.54. The NASDAQ Composite is declining 0.5% or 2.0 points in the day.
By sectors, information technology companies are the best performer with 0.89% gains in the day. Financials are advancing 0.71%, and industrials are 0.57% up on the day.
The losers are consumer staples with a 0.41% drop, utilities with a decline of 0.38%, and real state which is 0.32% down on the day.
In Europe, the FTSE 100 rose 49.95 points or 0.65% on the day to 7,676.28. The CAC 40 advanced 24.90 points or 0.46% to 5,447.44. The DAX closed 0.82% or 104.40 points positive on the day at 12,765.94.
