Stock indices little changed despite IBM slump

The latest earnings have not convinced investors to push prices higher.

Earnings have been the biggest story so far this week, and the story has not been that encouraging.

After the stock market’s big gains in 2013, investors are looking to earnings growth to justify high valuations, but unfortunately there have been disappointments in quite a few high-profile cases for one reason or another.

IBM dropped more than 3% after weak server sales led to a seventh straight quarterly decline in revenue. As it often does, Big Blue did a good job protecting earnings, though, managing to beat forecasts for profit. Luxury handbag producer Coach slid more than 6% after an earnings and revenue miss, though United Technologies and Norfolk Southern both advanced on the strength of their quarterly results.

Into the last hour of trading in New York, the Dow Jones was down 0.19% or 30 points at 16,384, while the S&P 500 was up 0.10% at 1845.7.

Earnings continue tomorrow with Microsoft, McDonald’s and Starbucks amid the big names we will be hearing from, and we have a busy day on the macro front for the first time this week in the US. Jobless claims will kick things off before Wall Street opens, followed by the ‘flash’ PMI manufacturing reading for January, December’s existing home sales, the Federal Housing Finance Agency’s house price index and the index of leading indicators for December from the Conference Board.

Despite the heavy flow of earnings this week so far, price movements of the overall stock market have been quite slight. There is enough on the plate in terms of potential catalysts tomorrow to suggest that could be about to change though.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.