Investing.com – U.S. stocks retreated from record highs as a bout of soft corporate earnings overshadowed better-than-expected economic data indicating the U.S. economy remains on track to post a solid quarter of growth.
In what is shaping up to be the busiest week of the earnings season, investors had to contend with earnings reports from corporates that failed to meet expectations, dampening recent investor optimism on earnings.
Shares of fast-food restaurant Chipotle Mexican Grill Inc (NYSE:CMG) and chipmaker Advanced Micro Devices Inc (NASDAQ:AMD) suffered double digit declines after the former missed earnings expectations while the chipmaker beat expectations but it’s near-term outlook on earnings was less optimistic than analysts had hoped.
“It is clear that markets are reacting to some disappointing earnings, because the economic picture remains robust,” said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.
On the economic data front, better-than-expecting housing and core durable goods orders data failed to lift sentiment on equities.
The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 1.3% last month, beating forecast of a 1% increase.
In a separate report, the Commerce Department showed existing home sales increased 18.9% in September from the previous month to a seasonally adjusted annual rate of 667,000 units. Economists were expecting a 0.9% decline to 555,000 homes.
'Bulls and Bears' on Wall Street
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.