U.S. Stocks Down Following Disappointing Earnings Results

By Justin Yang and Ese Erheriene Features Dow Jones Newswires

U.S. stocks opened lower Thursday, as earnings from retailers and technology companies weighed on major U.S. indexes.

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The Dow Jones Industrial Average fell 58 points, or 0.3%, to 21967, while the S&P 500 fell 0.2% shortly after the opening bell. The Nasdaq Composite was off 0.4%.

Victoria's Secret parent L Brands was one of the worst-performing stocks in the S&P 500, falling roughly 6% after the company cut its forecast for the remainder of the year. Big-box retailer Wal-Mart Stores was also down, falling around 3%, after the company reported lower profit on higher same-store sales. Cisco Systems slipped 3.7% after it said revenue fell last quarter.

Chinese e-commerce giant Alibaba Group Holding was up nearly 4% after the company reported better-than-expected earnings.

Equipment-rental company United Rentals, meanwhile, rose more than 2% on the company's announcement that it agreed to buy Neff Rental for $25 a share, or about $1.3 billion.

Elsewhere around the world, stocks were mixed following the release of central-bank minutes in the U.S. and Europe. The Stoxx Europe 600 was down 0.2% after a brief upward swing.

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The European Central Bank said in the minutes from its latest meeting that inflation still needed to show "convincing signs of a pickup."

Minutes from the Federal Reserve's July meeting were also on the minds of global investors Thursday after they showed disagreement over the timeline for future interest-rate increases in the U.S.

Despite the divisions in the Fed minutes, they still showed agreement over the central bank's plan to soon begin winding down its balance sheet.

The yield on the 10-year Treasury note rose to 2.238%, according to Tradeweb, from 2.224% Wednesday. The WSJ Dollar Index, which measures the dollar against a basket of currencies, rose 0.1%.

An earlier decline in the dollar pressured stocks in Japan, with the Nikkei falling 0.1%.

--Michael Wursthorn and Kenan Machado contributed to this article.

Write to Ese Erheriene at ese.erheriene@wsj.com

U.S. stocks fell Thursday, following some disappointing earnings results from retail and technology companies.

The Dow Jones Industrial Average declined 124 points, or 0.6%, to 21901, while the S&P 500 shed 0.7%. The Nasdaq Composite was down 0.9%.

A day after some retailers helped U.S. stocks bounce back, brick-and-mortar stores were once again contributing to broader market declines.

Victoria's Secret parent L Brands was one of the worst-performing stocks in the S&P 500, falling nearly 10% after the company cut its forecast for the remainder of the year. Big-box retailer Wal-Mart Stores declined 2% after the company reported lower profit on higher same-store sales.

Mark Stoeckle, chief executive and senior portfolio manager of Adams Funds, said his firm owns shares of the retailer and believes its sales growth amid the industry's broader struggles makes it attractive.

The pullback "could be a good opportunity for people who don't own Wal-Mart," said Mr. Stoeckle.

His firm also weighed adding to its Cisco position in a meeting Thursday morning, but executives felt it was competing against companies that showed better growth, he said. "Doing OK in an environment where you got too many opportunities isn't good enough," Mr. Stoeckle added.

Shares of Cisco Systems shed 4% after the company said revenue fell last quarter.

Tech shares, which have soared this year, declined broadly.

NetApp fell nearly 6% after the company issued sales guidance that fell on the low end of analyst projections even though it beat quarterly earnings expectations.

When shares fall after companies beat expectations, that could suggest some pockets of the market have reached a peak, some investors said.

"When good news isn't rewarded, that tends to give you pause," said Michael Scanlon, a portfolio manager at Manulife Asset Management.

Elsewhere around the world, stocks were mixed following the release of central-bank minutes in the U.S. and Europe.

The Stoxx Europe 600 fell 0.6% after a brief upward swing.

Minutes from the European Central Bank's latest meeting suggested the central bank is wary of pulling back too soon on its large bond-buying program, especially as inflation isn't yet at its target.

The Federal Reserve minutes, released Wednesday, showed disagreement over the timeline for future interest-rate increases in the U.S.

U.S. government bonds strengthened, sending the yield on the 10-year Treasury note down to 2.213%, according to Tradeweb, from 2.224% Wednesday.

An earlier decline in the dollar pressured stocks in Japan, with the Nikkei Stock Average falling 0.1%.

Write to Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

August 17, 2017 12:29 ET (16:29 GMT)