NEW YORK (Reuters) – World shares fell on Friday as corporate results and economic data failed to wow investors, leaving them to stew over trade tariffs and central bank policies.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid
The MSCI All-Country World Index, which tracks shares in 47 countries, was down 0.20 percent, though it still marked its fourth weekly advance.
Investors surveyed a host of second-quarter corporate results, punishing those that came up short, including Intel Corp, down 8.6 percent after its fast-growing data-center business missed estimates. Exxon Mobil Corp fell 2.8 percent and Twitter Inc sank 20.5 after their results.
Data showed the U.S. economy grew at its fastest pace in nearly four years during the second quarter, as consumers boosted spending and farmers rushed soybean shipments to China to beat retaliatory trade tariffs before they took effect in early July.
But the economic growth figures were widely expected.
“The terrible tariff talks has been a real damper on what has been a banner earnings season,” said Matt Schreiber, president at WBI Investments. “The markets should be higher right now.”
The Dow Jones Industrial Average fell 76.01 points, or 0.3 percent, to 25,451.06, the S&P 500 lost 18.62 points, or 0.66 percent, to 2,818.82 and the Nasdaq Composite dropped 114.77 points, or 1.46 percent, to 7,737.42.
Bonds did not sell off on positive news, either. Benchmark 10-year U.S. Treasury yields slipped from their highest level in 1-1/2 months and last rose 4/32 in price to yield 2.9598 percent, from 2.975 percent late on Thursday.
Rates markets await an important week of meetings at the U.S. Federal Reserve and Bank of Japan (BoJ). Earlier speculation that the BoJ might tweak its policies rattled global markets. The bank’s