US stocks retreat despite strong manufacturing data

Shares have largely given up their gains from the morning session on Wall Street, with some notable earnings misses.

Trading on Wall Street began brightly today, with the Dow charging up as high as 16,649 earlier in the session, but by early afternoon in New York the gains had been surrendered, with the Dow up just 6 points at 15,552, while the S&P 500 and NASDAQ 100 both slipped into negative territory, down 0.05% and 0.32% respectively.

Chevron is the biggest decliner in the Dow today, after reporting a disappointing quarterly performance: the oil company suffered a surprise drop in profit, caused by lower margins for refined products. Earnings declined to $2.57 per share from $2.69 per share a year ago. $2.72 per share had been expected. Chevron’s share price has dropped 1.7% today, and with a price weighting of around 5% in the Dow, that’s single-handedly shaved well over 10 points from the index.

Overall earnings have been in good shape so far this quarter, though, with close to 69% of S&P 500 companies beating estimates from those that have reported so far.

The dollar is showing broad strength today, following surprisingly strong manufacturing data from the Institute of Supply Management. The ISM manufacturing index rose to 56.4 in October, edging up from September’s already-strong level of 56.2. New orders, the most forward-looking part of the index, was at a level of 60.6, the third time in a row that this component has come in above the 60 level, and backlog orders climbed above 50 for the first time since April.

The shutdown appears to have had little effect according to this report, and this tallies with yesterday’s very strong Chicago PMI report, although notably Markit’s PMI manufacturing index does show signs of decline.

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.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.