Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow Jones Closes Lower, IBM Revenue Grows First Time in 23 Quarters

Published 2018-01-18, 04:07 p/m
Updated 2018-01-18, 04:16 p/m
© Reuters.

© Reuters.

Investing.com – Wall Street closed lower as investor fears of a government shutdown offset optimism over earnings, erasing intraday gains while a mixed bag of economic data did little to lift sentiment.

The Dow Jones Industrial Average closed lower at 26017.81. The S&P 500 closed 0.16% lower, while the Nasdaq Composite closed at 7296.05, down 0.03%.

Investor uncertainty on whether the government secured enough votes needed to pass a spending bill to avert a government shutdown spooked investors, triggering a retreat in US stocks.

Senate majority leader Mitch McConnell was preparing contingency plans for the growing possibility of a government shutdown, Politico reported, citing two Republican sources.

Other reports suggested that US lawmakers were preparing a stopgap bill that would keep the government running for a few days.

On the economic data front, investors mulled over mixed bag of economic data showing weakness in the housing market while jobless claims fell to their lowest total since 1973.

The U.S. Department of Labor reported Thursday that initial jobless claims fell 41,000 to a seasonally adjusted 220,000 for the week ended Jan. 12.

The Philadelphia Fed’s manufacturing index fell to a reading of 22.2 from the previous month’s 27.9, while U.S. homebuilding fell 8.2% to a seasonally adjusted annual rate of 1.192 million units in December.

In corporate news, Wal-Mart closed sharply higher after Goldman Sachs upgraded its rating on retailer to a buy from neutral, with a price target of $117, citing the retailer's strong strategic position selling consumables to middle-income consumers.

On the corporate earnings front, IBM (NYSE:IBM) reported fourth quarter non-GAAP earnings of $5.18 per share, a penny ahead of the analyst consensus while revenue was $22.5 billion, better than Wall Street expectations of $22.0 billion.

'Bulls and Bears' on Wall Street

The top Dow gainers for the session: UnitedHealth Group Incorporated (NYSE:UNH) rose 2%, Wal-Mart Stores Inc (NYSE:WMT) up 1.6% and Visa Inc (NYSE:V) up 0.9%

General Mills Inc (NYSE:GIS) down 3.3%, Boeing Co (NYSE:BA) down 3.1%, and Merck & Company Inc (NYSE:MRK) down 1.5%, were among the worst Dow performers of the session.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.