US stocks dropped, after the S&P 500 Index ended its longest rally since September, as AT&T Inc declined following its performance report and a manufacturing index missed estimates.
AT&T lost 4.5% after confirming its projections for growth of earnings. Amgen Inc sank 2.7% after posting lower-than-estimated sales for its best-selling arthritis drug. Yum! Brands Inc added 1.1% as first quarter earnings results surpassed expectations and China sales soared. Boeing surged 2.1% after increased jetliner sales saw profits beat estimates.
The S&P 500 plunged to 1,876 as of 9:50 am in New York. The Dow Jones Industrial Average lost 18.01 points or 0.1% to 16,496.36. The volume of shares traded at the S&P 500 surpassed the 30-day average by 16% at the specific time of the day, according to Bloomberg.
“These next few days are the most important of the earnings season as some big bellwethers report. Earnings have not been great this quarter. Expectations had already been brought down quite dramatically and profit growth is weak year-on-year,” said stock market analyst Heinz-Gerd Sonnenschein of Deutsche Postbank AG in Bonn, Germany.
He added that the S&P 500 was steadying but investors will wait for the green light to start buying stocks.
Markit Economic’s gauge of US factory output plunged to 55.4 in April from a reading of 55.5 in March.
Apple stocks have lost 5.2% since January 2014 through yesterday as the firm’s sales for iPhone and iPad slow.
Greenlight Capital Inc said it would bet against shares of technology companies as the probability of a bubble grew.
Technology stocks were in the top-four list of losers on Wednesday. Phone company stocks lost the most, sinking 3% as AT&T and Verizon Communications tumbled.
Stocks of the leading manufacturer of storage computers EMC Corp lost 4.7% to $25.50.
To contact the reporter of this story; Jonathan Millet at email@example.com