US stocks dipped in choppy trading as earnings, including Alibaba’s and a drop in the US crude futures, dragged the shares lower. Equities received some support from strong readings in the job market.
Shares of Alibaba Group dropped 9.2% to $89.37 after the revenue of the company missed the expectations of Wall Street.
Reuters quoted Kim Forrest, senior equity research analyst at Fort Pitt Capital Group as having said, “Alibaba is growing more slowly than thought, and it’s a stock a lot of people want to own. The growth of China is called into question by the Alibaba results.”
Trading was choppy as traders continued to digest Wednesday’s remarks from the Federal Reserve. The Fed reiterated its confidence in the US economy, but there are investors who saw the nod to international developments as potential signal rates might rise later than expected.
Quincy Krosby, market strategist at Prudential Financial said, “The clearer the Fed wants to be the more it spooks the markets. The statement yesterday was confusing for markets. They (the Fed) put sentences in there for everyone.”
As reported by Bloomberg the S&P 500 dropped less than 0.1% to 2,001.10, trading below its average price for the last 100 days. The gauge was lower 2.8% for January. The Dow Jones Industrial Average climbed 0.3% or 48.55 points to 17,239.92 while the Nasdaq Composite Index declined 0.17% to 4,630.15.
Qualcomm weighed the most on the Nasdaq with a drop of 11.4% to $62.88 after trimming its outlook for 2015.
Coach Inc shares climbed 6.4% to $38.80 after the handbag maker posted quarterly profits that were better-than-expected.
McDonald’s gained 4.3% to $92.62 after its said the chief executive officer, Don Thompson, would leave at the close of February and be succeeded by Steve Easterbrook, chief brand officer.
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