Dow Index Tumbles as Boeing and GM Fall on Earnings
New York (July 25) Stocks traded mixed on Wednesday, July 25, as investors prepared for a key summit on trade between Europe and the United States and as shares of Boeing Co. (BA) fell despite the aerospace giant beating earnings estimates.
The Dow Jones Industrial Average fell 88 points, or 0.35%, to 25,153, the S&P 500 rose 0.01% and the Nasdaq was up 0.14%.
European Commission President Jean-Claude Juncker will lead a delegation from the 28-member EU to the U.S. as he attempts to broker an impasse with the Trump administration on trade and tariffs that began earlier this year when the White House imposed import levies on steel and aluminum.
Reports have suggested the EU was prepared to expand its own list of tariffs on U.S.-made goods, which has already topped €2.8 billion, if it's not able to advance talks with the U.S. president.
Sergio Marchionne, the legendary auto industry executive, died Wednesday, just days after he stepped down as CEO of Fiat Chrysler Automobiles NV (FCAU) following medical complications linked to an earlier surgery.
•Sergio Marchionne Dies After Complications From Earlier Surgery
Marchionne, who assumed the role of Fiat Chrysler CEO when the U.S. division emerged from Chapter 11 bankruptcy in 2009, has been widely credited with steering the company into profitability thanks to a shift toward larger vehicles in the U.S. market and a focus on cost cuts.
AT&T Inc. (T) fell 4% after the newly constructed digital advertising, media and telecom machine got a cool reception, despite an earnings beat.
The parent of Time Warner, DirecTV and AT&T communications networks earned an adjusted 91 cents a share in the second quarter, topping analysts' estimates of 87 cents. Revenue in the quarter fell 2.1% from a year earlier to $39 billion and missed analysts' estimates.
•AT&T Media Ambitions Draw Cool Response
Boeing Co. (BA) posted second-quarter adjusted earnings of $3.33 a share, higher than estimates of $3.25. Revenue of $24.26 billion topped forecasts of $24.04 billion.
Shares fell 3.2%, however, as the company cut its defense operating margins and its full-year earnings guidance didn't meet analysts' expectations.
•Boeing's Earnings Soar, but Here Is Where Wall Street Is Focused
Coca-Cola Co. (KO) earned 61 cents a share on an adjusted basis in the second quarter, beating estimates by 1 cent. Revenue fell 8% to $8.9 billion but topped analysts' forecasts. Shares rose 2.7%.
•Coca-Cola Shares Edge Higher After Solid Q2, Full Year Guidance Boost
General Motors Co. (GM) posted adjusted profit in the second quarter of $1.81 a share, beating estimates by 3 cents. Revenue fell 3.1% to $36.8 billion. The automaker said it expects adjusted earnings in 2018 of $6 a share, below estimates of $6.42. Shares declined 7.5%.
•General Motors Just Served Up a Reality Check to Team Trump
•GM Slashes Guidance After Mixed Second Quarter
United Parcel Service Inc. (UPS) shares rose 3.3% on Wednesday as it reported top- and bottom-line beats for the second quarter.
Earnings reports are expected after Wednesday's closing bell from from Facebook Inc. (FB) and Advanced Micro Devices Inc. (AMD) .
Facebook is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.
Free White Paper: 7 Things All Investors Must Know in 2018. Start the second half off right with our free white paper on seven key things to watch this year. From how much cash to have on hand to the three reasons this bull market might die, our white paper features key takeaways from an all-star panel that TheStreet and Fisher Investments recently hosted in New York.
TheStreet
