Dow drops 115 points as stocks fall for a second day on concern about earnings; European stocks close lower as trade concerns weigh; Ericsson down 11%
Stocks fell on Wednesday as the corporate earnings season rolled on with companies like CSX and Bank of America releasing their quarterly numbers. The Dow Jones Industrial Average dropped 115.7 points, or 0.42%. The S&P 500 slid 0.65% to 2,984.42. The Nasdaq Composite closed 0.46% lower at 8,185.21.
Stocks closed at their lows of the day just after the Wall Street Journal reported that progress on a trade deal with China are stalled over restrictions on Huawei, citing people familiar with the talks.
Bank of America reported better-than-expected earnings on Wednesday, driven by the strength of its retail banking operation. However, the company’s CFO warned that lower rates would hit its net interest income growth. The stock rose around 0.7%.
United Airlines reported earnings and revenue that topped analyst expectations and increased its share buyback program by $3 billion.
The pan-European Stoxx 600 provisionally traded 0.36% lower during the session, with oil and gas stocks slipping almost 2% but food and beverage stocks clawing a 0.5% rise.
Euro zone inflation year-on-year for June came in slightly higher than initially forecast on Wednesday at 1.3%, but both headline and underlying inflation rates remain below the improvement sought by the ECB, which targets a rate of just below 2%.
Telecoms equipment maker Ericsson dropped 11.2% after warning that the costs of winning new network business may negatively impact its profit margins in the second half of the year.
Swedbank also slipped sharply after it cut its dividend amid uncertainties over its exposure to a Baltic money-laundering scandal.
Serbian companies generate highest revenues in region
The region's 100 most successful companies generated revenues totalling approx. 100 bln euros last year, with companies in Serbia accounting for over a third of the revenues, according to a survey conducted as part of the Top 100 in Serbia project, carried out by Cube Team and the Chamber of Industry and Commerce of Serbia (PKS). Serbia's 100 largest companies are generating revenues totalling 34 bln euros, followed by the top companies in Slovenia (29 bln euros), Croatia (24 bln euros), Bosnia and Herzegovina (11 bln euros) and Montenegro (4 bln euros), a statement said.
Construction of Belgrade metro could begin in second half of 2020.
Construction of a Belgrade metro could begin in the second half of 2020 at the earliest or at the end of that year, Serbian Deputy PM and Minister of Construction, Transport and Infrastructure Zorana Mihajlovic said Wednesday. "As regards the construction of a Belgrade metro, many frameworks and projects are still to be defined before we can get to a situation where we can talk about the official amount of the investment and what partners will offer us," she told a press conference in Bela Palanka, southeastern Serbia.
Dinar to remain steady, euro rate at RSD 117.7389
The Serbian dinar will remain approximately steady against the euro Thursday and the official median exchange rate will be 117.7389 dinars for one euro, the National Bank of Serbia (NBS) has announced in a statement. The NBS bought 15 mln euros on the interbank foreign exchange market to curb major daily exchange rate fluctuations, taking the total purchased since the beginning of the year to 1.64 bln euros, while the total sold remains 130 mln euros. The dinar will rise 0.2 pct against the euro m-o-m, 0.3 pct y-o-y and 0.4 pct compared to the beginning of the year.