empty
 
 

2018.01.1821:09:00UTC+00Wall Street Retreats on Concern Over US Government Shutdown

U.S. equities pulled back from record highs on Thursday as investors were focused on the possibility of the government shutting down at the end of the week.

The Dow Jones industrial average ended 97.84 points lower at 26,017.81 after falling 168.33 points at its session lows.

The S&P 500 fluctuated between gains and losses throughout the session before closing 0.2 percent lower at 2,798.03. The Nasdaq Composite fell 0.07 percent to 7,292.95.

Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. Historically, a government shutdown has led to a short-term pullback in the stock market.

Equities have been boosted this year by optimism in the U.S. economy and expectations for a strong earnings season. Thus far, the earnings season is off to a good start.

Investors are focused on corporate earnings reports, given the runup in stock valuations.

Morgan Stanley wrapped up earnings season for the big U.S. banks with a better-than-expected profit, but its shares were flat.

Of the S&P 500 firm that had reported as of Wednesday morning, 78 percent have surpassed earnings-per-share estimates while 89 percent have beaten expectations on the top line, according to Nick Raich, CEO of The Earnings Scout.

General Electric shares tumbled their lowest level in six years, breaking below $17 for the first time since December 2011.

Bank of New York Mellon also declined around five percent after the custodian bank said it expected to book more in severance costs in 2018.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback