Dow knocked despite robust earnings

Investors appear underwhelmed by the latest earnings on Wall Street, despite several Dow components beating forecasts today.

The performance of the US stock market has been decidedly mixed today, with the technology-focused NASDAQ advancing well, the broad S&P 500 moving sideways and the Dow Jones retreating.

Three Dow components reported for their last quarters today and all three saw a decline in their share price, even though the results were fairly strong. Verizon saw a 3.4% rise in quarterly revenue after better-then-expected growth in its wireless business. The company announced earnings of $1.76 per share, compared to a loss of $1.48 per share in the same quarter in 2012. This was a better result than had been expected by Wall Street analysts, but still saw its shares drop 1.6%.

Travelers also surprised to the upside with its earnings and also saw a similar percentage fall in its share price. It was a similar story for drugmaker Johnson & Johnson, which achieved earnings of $1.24 per share for the quarter, compared to a consensus estimate of $1.20, but the company provided slightly disappointing forward guidance for 2014, estimating earnings in the range of $5.75 to $5.85 per share, which is towards the low end of where analysts had been forecasting earnings for the this year. Its shares slipped 1.4%.

By early afternoon in New York, the Dow Jones was off by 0.47%, the S&P 500 was up 0.23% and the NASDAQ 100 had risen 0.61%.

The Bank of Canada is scheduled to announce its latest rate decision tomorrow. Speculation that the central bank could be thinking about introducing an easing bias has helped push USD/CAD to its highest rate in more than four years today. The currency pair was up 0.22% at 1.0970 after earlier breaking above 1.1000 for the first time since September 2009.

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