NEW YORK: The Dow rose to another record Thursday, while the Nasdaq's winning streak ended and European bourses declined following disappointing results from Deutsche Bank and other big companies.
The Nasdaq's decline after hitting three straight records came as tech stocks like Apple, Google-parent Alphabet and Netflix were primed for profit-taking after posting handsome gains in recent weeks, analysts said. Those stocks each fell 1.5 percent or more.
"The Nasdaq has been on fire here and the tech sector in particular has been the best performing sector in the S&P 500," said Bill Lynch, director of investment at Hinsdale Associates.
"Investors look at the run up in the tech sector and figure it is a good time to take some profit."
But the Dow closed at its second straight record following strong earnings from Verizon and Procter & Gamble and another gain by Boeing, which also surged Wednesday following strong results.
High-profile earnings disappointments pressured bourses in Europe.
Deutsche Bank, Germany's biggest lender, slumped 6.5 percent after reporting that operating profit more than doubled, while posting a 10-percent decline in revenue.
In London, AstraZeneca's share price plunged 16 percent as investors fretted over disappointing trial results for its next-generation lung cancer treatment.
Sentiment took another heavy blow as Astra's first-half sales were hurt by the loss of US patent protection on two blockbuster drugs.
In Paris, Airbus lost 3.2 percent as the European aircraft manufacturer posted sliding first-half net profits -- and blamed problems with the engines for the new version of its top-selling A320 jet.
Those ugly declines were offset somewhat by better results by some other companies, limiting losses to 0.1 percent in London and Paris. Frankfurt fell 0.8 percent.
The dollar, which had fallen sharply on Wednesday after a Federal Reserve policy statement highlighted weak inflation, recovered some of those losses. Near 2100 GMT, the euro was at $1.1677, down from $1.1735 a day earlier.
Comments
Comments are closed.