Mixed Trends in NY Stock Market: MS and Alphabet Up, GM Down

Dow Falls, Nasdaq Steady

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market showed mixed trends as the momentum of corporate earnings eased.

On the 27th (local time), the Dow Jones Industrial Average fell 266.19 points (0.74%) to close at 35,490.69, the S&P 500 index dropped 23.11 points (0.51%) to 4,551.68, and the Nasdaq index rose 0.12 points (0.00%) to close at 15,235.84.

Alphabet, Google's parent company, and Microsoft, which announced earnings the previous day, both rose nearly 5% and hit record highs, but it was not enough to lead the overall market.

Tesla rose 1.9%, maintaining its stock price above the thousand-dollar mark for three consecutive days. General Motors (GM) claimed it could catch up to Tesla in the electric vehicle sector by 2025, but Tesla's stock price rose while GM's fell.

Although GM's earnings exceeded market expectations, its stock price dropped by as much as 5.4%. Competitor Ford fell 2.4% during regular trading but rebounded 4.3% in after-hours trading following a positively received earnings report.

The stock prices of Coca-Cola and McDonald's showed strength on news that their net profits and sales exceeded expectations.

Twitter fell 10.7% due to concerns over future earnings forecasts despite solid earnings.

Many companies that announced earnings that day also fell short of expectations. Aircraft manufacturer Boeing dropped 1.53% on news that its loss was larger than expected.

Stock trading app Robinhood plunged 10.44% reflecting poor earnings. Robinhood's stock price fell below its IPO price of $38.

Semiconductor company Texas Instruments plunged 5.02% on news that its sales fell short of expectations.

Visa fell 6.9% due to poor earnings and news that the U.S. Department of Justice is scrutinizing its relationship with fintech companies.

The U.S. 10-year Treasury yield traded near 1.53%, continuing its downward trend. A decline in Treasury yields means a rise in bond prices.

So far, about 38% of S&P 500 companies have reported earnings, and among them, 83% announced profits exceeding expectations.

Ed Moya, senior market analyst at OANDA, explained, "This earnings season is signaling that consumers can bear price increases."