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Overnight Markets: Wall Street declines on disappointing earnings reports

Overnight Markets: Wall Street declines on disappointing earnings reports

Wall Street closed lower on Thursday after corporate earning disappointed and trade jitters escalated as the European Union officials are said to be preparing for retaliatory tariffs on goods imported from the US.

The Dow Jones Industrial Average declined 135 points, or 0.53%, to 25,065, the S&P 500 fell 11 points, or 0.40%, to 2,804 and the Nasdaq Composite fell 29 points, or 0.37%, to 7,825.

The EU Trade Commission officials are said to be preparing a list of tit-for-tat actions in response to proposed US tariffs on EU cars.

Automakers said tariffs on US cars and car parts could increase vehicle prices by $83 billion annually. Ford Motor Co and General Motors Co were down 0.5% and 1.4%, respectively.

Shares of eBay fell 10.1% after a disappointing earnings report. American Express Co dipped 2.7% after the credit card company reported rising expenses due to increased spending on its rewards programme.

Sharp moves in bond yields after President Donald Trump told CNBC he wasn’t “thrilled” that the Federal Reserve was hiking interest rates, put pressure on financial stocks. JP Morgan, Bank of America and Citigroup were all down more than 1%.

Bank of New York Mellon fell 5.2% after saying the loss of two clients will continue to hurt results.

Travelers Cos was among the biggest drags on the Dow Jones, falling 3.7% following a profit miss attributed to US storm-related losses.

Comcast Corp added 2.6% on news that the cable company had dropped its pursuit of Twenty-First Century Fox entertainment assets to focus on its bid for Sky Plc.

In Asia, shares fell on Friday in morning session after stocks stateside slipped amid Trump's criticism of the Fed, while the yuan weakened further.

Japan's Nikkei 225 declined 0.77%. South Korean stocks also traded lower, with the Kospi slipping 0.44%. Elsewhere, Hong Kong's Hang Seng Index lost 0.77%. The Shanghai composite slipped 0.5%. Down Under, the S&P/ASX 200 bucked the trend to tack on 0.27%.

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