US open: Stocks start on back foot as Boeing losses widen

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Boeing Co.

$158.10

08:35 23/10/24

-1.11%

-$1.78

Wall Street opened lower on Wednesday, with key indices reflecting cautious sentiment among investors amid a number of corporate earnings reports.

Starbucks Corp.

$96.64

08:40 23/10/24

-0.19%

-$0.18

The Dow Jones Industrial Average was down 0.6% at 42,667.72, while the broader S&P 500 slipped 0.3% to 5,833.74, and the tech-heavy Nasdaq Composite fell 0.49% to 18,482.22.

On the earnings calendar on Wednesday, Boeing reported a deep third-quarter loss before markets opened, while Coca-Cola posted smaller revenue.

Electric carmaker Tesla was due to release its latest numbers later in the day.

“A few key themes are developing this week - the first is a slowdown in stock markets,” said XTB research director Kathleen Brooks.

“The main US stock market recorded its first back-to-back loss in weeks on Tuesday, while the Nasdaq eked out a small gain.

“This week’s stock market price action suggests that the 50th record high for the S&P 500 could be a tough ask with the US election so close.”

Brooks added that European indices were mostly flat to lower, as they also lost their anchor in the lead-up to some key geopolitical risks.

“We will be watching to see if Elon Musk can sell a more convincing story about Tesla’s future plans for growth compared to previous earnings reports.”

On the economic front, September's existing home sales data was set to be released later in the day, with the figures expected at 1500 BST.

The report was set to offer insights into the health of the US housing market, which had been grappling with higher mortgage rates and affordability challenges.

In equities, Boeing shares edged up 0.54% at the open despite reporting a significant widening of its third-quarter losses.

The aerospace giant posted a net loss of $7.95bn, or $12.91 per share, compared to a much smaller loss of $2.2 million, or $3.64 per share, in the same period last year.

Core losses per share widened to $10.44, slightly better than the $10.52 per share analysts had predicted.

Revenue for the quarter was down 1% to $17.8bn, in line with expectations.

The company was hit by work stoppages and programme charges, particularly in its 777X and 767 aircraft programmes and its defence, space, and security segment, which saw a $2bn charge.

Elsewhere, Starbucks shares fell 0.78% after the coffee chain scrapped its annual guidance following a decline in quarterly sales and earnings, adding to concerns about weakening consumer demand.

McDonald’s saw a sharp decline, with shares dropping 5.98% after the US Centers for Disease Control and Prevention (CDC) linked its Quarter Pounders to a fatal E.coli outbreak, which is likely to impact consumer confidence and the company’s outlook.

Reporting by Josh White for Sharecast.com.

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