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Overnight Markets: S&P 500 inches lower on weak industrials sector

Overnight Markets: S&P 500 inches lower on weak industrials sector

US stocks closed mostly lower on Thursday as investors digested a mixed string of earnings reports of big names in broad-range industries and amid concerns about slowing global growth.

The Dow Jones Industrial Average was down 135 points, or 0.51%, to 26,462. The S&P 500 decreased one point, or 0.04%, to 2,926. The Nasdaq Composite Index added 17 points, or 0.21%, to 8,119.

The industrials sector declined 1.99% with major drags from 3M, United Parcel Service Inc and Raytheon Co after they reported disappointing results. Fedex Corp also slumped after UPS’ profit miss. Inc gained 1.7% in after-hours trading after the company reported a first-quarter profit that topped estimates, although its second-quarter revenue forecast was largely below expectations.

Intel Corp declined 7% after the chip maker forecast current-quarter revenue below analysts’ estimates.

But shares of Facebook Inc and Microsoft Corp both jumped, rising 5.8% and 3.3%, respectively, after they reported better-than-expected results.

3M plunged almost 13% in its biggest one-day percentage drop in more than three decades, after it cut its 2019 earnings view and announced plans to lay off 2,000 workers.

Xilinx Inc was the S&P’s biggest percentage decliner, falling 17.1% after the chipmaker’s quarterly gross margins fell short of estimates. The Philadelphia chip index dropped 1.8%.

In economic news, the number of Americans who applied for first-time jobless benefits surged to 230,000 in the week ended 20 April, up from 193,000 during the previous week.

Orders for durable goods added by 2.7% in March, the largest one-month increase since last summer, the Commerce Department said.

In Asia, shares declined on Friday in morning session after the Dow Jones dropped more than 100 points overnight.

In Japan, the Nikkei 225 fell 0.59%, while the Topix index slipped 0.77%. Over in South Korea, the Kospi declined 0.51%.

Losses were also seen in Australia, where the ASX 200 fell marginally. In China, the Shanghai Composite Index fell 0.43%, while Hong Kong’s Hang Seng Index declined 0.07%.

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