Stocks were mostly lower in mint trading Wednesday after rallying earlier as long-standing fear of global growth and trade tensions between the US and China overshadowed optimistic earnings from corporate heavyweight.
What are the benchmarks?
Dow Jones Industrial Average
DJIA, + 0.45%
rose 67 points or 0.3% to 24,474, while the S & P 500 index
SPX, [0.05] 0.05%
decreased 3 points or 0.2% to 2.628. Nasdaq Composite
slipped 22 points or 0.3% to 6,998.
At session heights, Dow had increased 296 points, S & P had advanced 20 points, while Nasdaq was up to 64 points.
What drives the market?
Earnings season is in full swing and investors are laser focused on fourth quarter results, but more importantly, what business leaders are saying about the outlook for profits and revenue in 2019. Revenue reports are well received by investors starting with International Business Machines Corp .
IBM, + 8.59%
by management issued a bullish outlook for profit in 2019.
At the forefront, Reuters reported that President Donald Trump will not accept any deal with China unless Beijing agrees Make significant changes to the way it does business, including how it handles intellectual property.
Read: Wall Street cares about the downturn in China complicates Trump's tough trading strategy
Meanwhile, the Senate was ready to vote Thursday on dueling proposals to reopen government. A partial decommissioning came on its 33rd day in response to concerns over its potential impact on the economy. Neither voting proposal is considered likely to pass the Senate, but analysts said the move might give hope that the long-term decline is closer to a decision.
See: State stops are likely to end in two weeks, says analyst
What shares are in focus?
IBM stock rose 8.2% to lead the Dow. Fellow blue chip United Technology Corp. .
UTX, + 4.98%
increased 4.8% after the company had beaten both revenue and earnings. Stocks of Procter & Gamble Co .
PG, + 3.99%
advanced 4.4% after the company reported better than expected revenue and earnings and raised the high end of its organic growth guide in 2019.
Shares by Burger King parent Restaurant Brands International Inc .
QSR, + 9.21%
gathered 8.7% after the company was named Jose Cil, currently president of Burger King, as CEO. The company also delivered positive sales data and raised quarterly dividends. Shares of Kimberly-Clark Corp .
fell 2.6% after the consumer goods company entered a fourth quarter earnings error.
Tesla Inc .
shares fell 4.6% after RBC downgraded the underperforming stock to surpass while it lowered its price target to $ 245 from $ 290.
Shares by Comcast Corp .
CMCSA, + 4.35%
increased 4.8% after the ISP exceeded analysts' surpluses and sales expectations.
shareholdings 2.4% after the company's fourth quarter revenue was less than expectations.
Shares of Synchrony Financial
SYF, + 10.13%
shot 11% after the company announced that it had expanded its partnership with Walmart Inc .
WMT, + 0.84%
Sam's Club, and reported that Walmart had agreed to reject a lawsuit against the company.
What do the analysts say?
"The market is reluctant to overcome fear of slowing global growth, China-US trade relations and government interruption," said Michael Arone, investment manager at State Street Global Advisors, MarketWatch.
"The culmination of everything that points to challenges for stocks to move higher, despite earnings that have been better than expected," he added.
"Yesterday, the story was about weakening global growth, but today it's all about positive earnings momentum," said Jeffrey Kravetz, regional investment director at US Bank Private Client Reserve. "Bellwether S & P 500 companies are sending solid earnings, and prospects have been good."
IBM's fourth quarter earnings report was "probably the cleanest quarter this year," writes Joel Kulina, analyst at Wedbush Securities, in a note to customers. Investors should take comfort in management, providing "additional evidence of the strength of software, analytics and services focused on hybrid cloud and digital strategy." IBM's strong numbers were good for the cloud complex, he said.
How are other markets going? 19659003] Asian markets are mostly traded flat, with Japan's Nikkei 225
index closing 0.1% lower, while Hong Kong's Hang Seng
HSI, + 0.01%
index was largely unchanged, and the Shanghai Composite Index
increased less than 0.1%.
In Europe, stocks were mixed with Stoxx Europe 600
shuts down 0.1%.
failed to keep early gains, with the US benchmark down while gold
was largely unchanged, and the US dollar
-William Watts contributed to this report