Wall Street had a rough Wednesday as a string of corporate earnings results came in underwhelming. The tech-heavy Nasdaq saw the biggest drop after Microsoft’s quarterly results offered a bleak outlook. Analysts now predict a 3.0% year-on-year drop in aggregate S&P 500 earnings. That’s nearly double the 1.6% drop forecasted on January 1st.
The Dow Jones Industrial Average fell by 67.67 points, or 0.2%, to 33,666.29, the S&P 500 lost 14.05 points, or 0.35%, to 4,002.9 and the Nasdaq Composite dropped 74.04 points, or 0.65%, to 11,260.23. Most of the 11 sectors of the S&P 500 were in the red, with utilities seeing the largest percentage loss.
Boeing’s shares managed to reverse an earlier dip, gaining 0.8% after the company posted widening losses for 2022, but reported its first positive cash flow since 2018 due to commercial airplane deliveries. Abbott Laboratories, on the other hand, saw a 2.0% drop as weaker-than-expected medical device sales weighed on the stock.
Meanwhile, News Corp jumped 5.2% as Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp. AT&T also delivered disappointing guidance but its renewed focus on its telecoms business helped boost subscriber numbers, sending its shares up 6.0%. General Dynamics beat quarterly expectations, but a weak 2023 forecast helped send the defense contractor’s shares sliding 3.2%. Tesla, the electric automaker, is among the most closely watched corporate results expected after the closing bell. In a post-script to Tuesday’s technical glitch that halted the opening auctions for a spate of stocks and prompted a review by the U.S. Securities and Exchange Commission, the New York Stock Exchange said a manual error resulted in the snafu that caused widespread confusion at the opening bell.