The major averages climbed well off their worst levels going into the close but remained in the red.
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The Dow Jones industrial average.DJI fell 105.43 points, or 0.57 percent, to 18,489.6, the S&P 500.SPX lost 10.06 points, or 0.46 percent, to 2,162.96 and the Nasdaq Composite.IXIC dropped 20.00 points, or 0.39 percent, to 5,069.94.
The weakness that emerged on Wall Street was partly due to profit taking following the upward trend seen over the past few weeks.
Wall Street closed slightly higher on Monday to mint new record highs for the S&P 500 and the Dow industrials, fueled by Bank of America’s better-than-expected profit and a major tech sector acquisition.
SURGING SURGICAL: Intuitive Surgical surged $36.91, or 5.5 percent, to $708.81 after the maker of robotic-assisted surgical systems reported revenue and earnings per share that both topped analysts’ expectations.
Intel shares were down 3.6 percent at $34.40 after the chipmaker reported revenue growth slowed at its key data center business.
EUROPE POST-BREXIT: Investors are watching for the news conference later in the day by the European Central Bank to see what actions might be ahead to shore up the European economy. In the short-term, corporate earnings will continue to dictate investor sentiment, as will domestic economic data.
One of the most powerful pre-breakout indicators on long-term charts is the “W” formation.
He added, “If warranted to achieve its objective, the Governing Council will act by using all the instruments available within its mandate”.
The materials sector gained 0.7 percent, boosted by a 2.9-percent rise in Monsanto shares. The cyclical rally is probably a brief mean reversion attributable to the outsize moves in defensive stocks and may not last, he wrote. The company also raised its earnings forecast for the year.
“These numbers are confirming the earning bounce back we were expecting, given flat oil prices and a flat USA dollar”, J.P. Morgan’s Kelly said.
The price of US crude oil rose 29 cents to $44.94 per barrel. That’s made it easier for companies to come in above forecasts. Southwest Airlines Co. tumbled 8.7 per cent after its earnings disappointed, weighing on shares of other carriers.
On the other hand, telecom stocks saw continued strength, with the NYSE Arca Telecom Index jumping by 3.4 percent.
Sales estimates are rising as well, according to analysts surveyed by Bloomberg. Gold rose $9.40, or 0.7 percent, to $1,328 an ounce.
The Dow closed at its seventh straight record on Wednesday, landing at an all-time high of 18,595.03, before snapping its streak on Thursday.
European stocks were flat as the ECB left rates unchanged.
Britain’s FTSE 100 rose 0.4 percent to 6,728 and Germany’s DAX was up 0.1 percent to 10,163.
While buying interest has remained relatively subdued, stocks have moved mostly higher over the course of the trading session on Friday.
GE, long considered a bellwether for the USA economy, dropped 2.1 percent after its earnings report, while Honeywell fell 3.8 percent after lowering its full-year sales forecast.
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About 6.2 billion shares changed hands in USA exchanges, below the 7.5 billion daily average over the past 20 sessions. Intel Corp., American Express Co. and EBay Inc. are also among S&P 500 Index companies releasing financial results today.
