Stocks fell on Thursday after Morgan Stanley’s latest quarterly results disappointed investors. Wall Street also grappled with uncertainty around the Chinese economy.
The Dow Jones Industrial Average gave back 49.82 points to 24,157.34, as Home Depot and Caterpillar lagged.
The S&P 500 lost 2.2 points to 2,613.90, led by losses in financials, industrials and energy.
The NASDAQ Composite eked up 0.79 points to 7,035.48
Morgan Stanley reported earnings and revenue that fell short of Wall Street estimates. The company’s results were dragged down by poor performances in its trading and wealth management businesses. Morgan Stanley shares fell 4%
Citigroup, J.P. Morgan Chase, and Wells Fargo also reported quarterly earnings this week. American Express and Netflix are scheduled to report after the close Thursday. Netflix’s earnings will arrive after the streaming giant announced it would raise monthly subscription prices by 13% to 18%, a move that was cheered by Wall Street earlier this week.
Thursday’s moves come after the major indexes posted solid gains in the previous session, lifted by the sharp gains in Goldman and Bank of America. The major indexes also came with solid gains for the week, having risen at least 0.8%.
Concerns over China appeared to weigh on sentiment Thursday. China’s central bank made its biggest ever daily net cash injection via reverse repo operations, pumping $82.73 billion U.S. into the banking system. The news came after comments from the Chinese state planner and Premier Li Keqiang suggested the country would inject more stimulus amid concerns of a slowdown in economic growth.
Prices for the benchmark for the 10-year U.S.Treasury fell back, raising yields to 2.74% from Wednesday’s 2.73%. Treasury prices and yields move in opposite directions.
Oil prices hesitated 76 cents to $51.55U.S. a barrel.
Gold prices weakened three dollars to $1,290.80U.S. an ounce.
This article provided by NewsEdge.