US open: Stocks slide on the back of disappointing consumer confidence data
US stocks slid on Friday, on the back of disappointing consumer sentiment data and mixed earnings reports.
Dow Jones I.A.
42,352.75
04:30 15/10/20
EL POLLO LOCO
$13.40
11:05 04/10/24
Nasdaq 100
20,035.02
12:15 04/10/24
Netflix Inc.
$719.70
13:04 04/10/24
Yum! Brands Inc.
$136.57
10:59 04/10/24
Just after 15:00 BST, the Dow Jones Industrial Average was down 25 points, while the S&P 500 and the Nasdaq lost four and 13 points, respectively.
US consumer sentiment fell to a reading of 88.6 in May, a seven-month low, compared with a final April level of 95.9, a report from the University of Michigan said on Friday.
Analysts had expected the closely-monitored index to fall to 94.5 in May's preliminary reading.
On the back of the disappointing reading, the dollar fell 0.15% against the euro and 0.12% against the pound, although it was broadly stable against the yen, while gold futures slid 0.58% to $1,218.10.
Manufacturing activity in the New York Fed's jurisdiction rebounded slightly in May, but not by as much as analysts had hoped for, as the so-called Empire State factory gauge increased to 3.1 this month, according to the New York Federal Reserve.
This marked an improvement from April's reading of -1.2, the index's first reading below zero since December.
Meanwhile, US industrial production unexpectedly dropped 0.3% month-on-month in April after a revised 0.3% decline in March, compared with the consensus forecast for no change and marking a fifth straight decline.
"The April industrial production report reflects the continued headwinds the US manufacturing sector faces from a strong dollar, lower oil prices and softness in international demand," Barclays analysts said in a note.
Netflix in China talks
In company news, Netflix rose 3.06% on the heels of reports the Internet TV network was in talks with a Chinese media group to enter the country’s on-demand streaming market.
Fast food retailer Yum! Brands gained 1.5%after the fast-food company was upgraded to overweight from neutral at JP Morgan, while sector peer El Pollo Loco plunged 14.45% after reporting sales that fell below forecasts at the end of the previous session.
King Digital Entertainment fell 4.60% after the “Candy Crush” maker reported a decline in revenue late Thursday, while retailer Nordstrom slid 0.07% after its results fell short of estimates
Elsewhere, almost all European stocks built on Thursday’s gains to edge higher, while Hong Kong’s Hang Seng index closed up 2%, following speculation that a stock-connect programme between Hong Kong and Shenzhen could be announced in the next 48 hours.
Oil prices slid, with West Texas Intermediate losing 1.73% to $58.86 a barrel, while Brent shed 1.41% to $65.77 a barrel.