Despite growth in the U.S. economy and corporations beating earnings expectations, the wave of volatility sweeping through U.S. financial markets has investors anxious.
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“I think the only certainty today is uncertainty,” former Chrysler and Home Depot CEO Bob Nardelli told FOX Business’ Mellissa Francis on Wednesday. “These corporations are working extremely hard to deliver very profitable and healthy returns to their investors.”
On Wednesday, the Dow Jones Industrial Average plummeted 608 points, or 2.4 percent, to 24,583.42. The S&P 500 fell 84.6 points, about 3 percent, to 2,656. The Nasdaq was down 329 points, or 4.4 percent, at 7,108.
Ford, Microsoft and Tesla beat analysts’ expectations for quarterly earnings, despite their stocks ending the trading day in negative territory.
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Ford announced third-quarter earnings of 29 cents a share. Microsoft posted $1.14 in earnings per share, ahead of Wall Street’s expected 95 cents a share. Tesla reported surprise third-quarter profits with adjusted earnings per share of $2.90, beating an expected loss of 19 cents per share.
“When you beat the estimates and your stock goes down, it’s really depressing,” Nardelli said on “After the Bell.”
Nardelli said he is hopeful that market anxiety suggests that stocks may have reached their low point before potentially turning positive after an optimistic midterm election return for the Trump administration.
“We’ve got … a lot of distractions that unfortunately are detracting from good, solid, you said it exactly, the economy has great momentum,” he said.