Finance

IBM's 4% Stock Tumble Slashes 45 Points From The Dow

IBM's 4% Stock Tumble Slashes 45 Points From The Dow

US stocks closed at record highs on Wednesday as investors digested key quarterly earnings.

The Dow Jones Industrial Average .DJI fell 54.99 points, or 0.25 percent, to 21,574.73, the S&P 500 .SPX gained 1.47 points, or 0.06 percent, to 2,460.61 and the Nasdaq Composite .IXIC added 29.87 points, or 0.47 percent, to 6,344.31. The S&P 500 gained 4.26 points, or 0.17 per cent, to 2,464.87.

Shares of Netflix Inc. rocketed 9.1% to open well into record territory Tuesday, as investors and analysts cheered the video streaming service's second-quarter results.The company added 5.2 million memberships during the second quarter compared with the Wall Street consensus of 3.2 million driven by global subscriber growth. Many investors had previously considered the health-care bill's progress an indicator of the likelihood of Congress passing corporate-friendly policies later in the year. "I'm not as convinced on that", he said.

Energy stocks saw substantial strength on the day, benefiting from an increase by the price of crude oil.

Economists had expected housing starts to rise to a rate of 1.155 million from the 1.092 million originally reported for the previous month.

The call for lower interest rates is helping to boost the highly capitalized tech stock index while hurting banking stocks which is part of the Dow average and the S&P 500 Index. Netflix exceeded its quarterly subscriber growth estimate after the market closed on Monday.

Burglars release 40K mink from MN farm
There was a report Monday night from a nearby farmer who lost 10 chickens, likely to the mink. "It's a disaster", he said. He says the animals have always been caged and that hundreds of the released mink have already been found dead.

Bank earnings "have come out pretty well, but apparently not enough for investors to keep them running, to keep the prices up", said Giri Cherukuri, head trader at OakBrook Investments LLC, which oversees $1.3 billion in Lisle, Illinois.

The Dow was dragged lower by a drop in Goldman Sachs, which fell 2.6 percent to $223.31 after reporting a 40 percent fall in bond trading revenue and posted the weakest commodities results in its history as a public company.

The pan-European STOXX 600 index rose 0.7 per cent while blue chips climbed 0.6 per cent. Many investors will be closely watching the European Central Bank's meeting Thursday for clues about when the central bank will exit its huge stimulus program.

"Draghi has been a wild card in the market", said JJ Kinahan, chief market strategist at TD Ameritrade.

The strength of the yen limited Japan's Nikkei to a rise of 0.1 per cent.