NEW YORK (Reuters) – A gauge of global stocks lost ground for a third straight session on Thursday on worries over how the trade war between the United States and China could take a toll on corporate earnings, while oil prices dropped on expectations of rising output.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2019. REUTERS/Brendan McDermid
On Wall Street, shares of Netflix plunged 10.97% in the wake of its quarterly results as it missed targets for new subscribers overseas.
Honeywell, up 2.15%, helped curb losses as its results topped expectations and it raised its full-year outlook. However, the diversified manufacturer said it is planning “somewhat cautiously” for the second half due to volatile geopolitical and economic movements.
“The stock market seems to be running out of energy,” said John Augustine, chief investment officer of Huntington Private Bank in Columbus, Ohio.
“Earnings have met expectations, but companies are being cautious about future quarters, which is something that’s not able to keep the S&P 500 above the 3,000 level,” Augustine said.
Earnings are now expected to show growth of 0.6% for the second quarter, according to Refinitiv data. S&P 500 companies were expected to show a decline as recently as Tuesday. The ratio of negative to positive earnings preannouncements is 3.8, above the 2.7 average since 1997 and the 1.9 for the prior four quarters.
U.S. and Chinese officials were scheduled to have a phone call later on Thursday on trade, U.S. Treasury Secretary Steven Mnuchin told CNBC.
The Dow Jones Industrial Average fell 80.95 points, or 0.3%, to 27,138.9, the S&P 500 lost 1.02 points, or 0.03%, to 2,983.4 and the Nasdaq Composite dropped 20.75 points, or 0.25%, to 8,164.46.
In Europe, stocks were initially weaker as disappointing earnings from