(Reuters) – US equities fell on Thursday as weak earnings reports from industrial firms raised concerns about rising spending and the impact of tariffs, leading to concerns over higher borrowing costs following restrictive comments in the Federal Reserve's minutes.
China trade wars, rising credit costs and wage pressures were the main concerns of investors as the earnings season picked up in the third quarter and contributed to last week's sell-off.
Textron's shares fell 9 percent after the expected quarterly profit was impacted by a decline in sales of turboprop aircraft as well as deliveries of flagship Cessna business aircraft.
Sealed Air Corp shares fell 8.1 percent after the packaging company's full-year earnings guidance decreased due to higher than expected raw material and freight costs. 19659002] Nine of the 11 major S & P 500 sectors were lower, led by a 1 percent contraction in industrials. Only defensive utilities and consumer staples and real estate stocks were higher.
The Fed's assessment, published in the minutes of its Wednesday September session, supported the expectations of a fourth rate hike in December and more next year despite fierce criticism from President Donald Trump.
The restrictive comment also delivered returns on the benchmark 10-year Treasury notes touched back to multi-year highs last week, which contributed to the sell-off in equities.
"As interest rates continue to rise from their current levels, investors will be even more reluctant to buy the dips in stocks," wrote Hussein Sayed, chief market strategist at FXTM, in a note.
At 9:40 pm EDT the Dow Jones Industrial Average was 147.63 points, or 0.57 percent, at 25,559.05, the S & P 500. The price fell 15.44 points or 0.55 percent to 2,793, 77 and the Nasdaq Composite fell 45.72 points or 0.60 percent to 7,596.98.
S & P 500 earnings should have risen 21.9 percent in the quarter. B / E / SR efinitive. Of the 51 companies that have reported so far, 84.3 percent have exceeded analyst expectations.
Among the winners were Alcoa's shares, which rose 7.9 percent after the US aluminum producer reported quarterly earnings more than expected (19659002) Philip Morris gained 2.9 percent after cigarette maker Marlboro's analyst estimates for quarterly earnings and sales surpassed.
Downward problems outweighed progress on the 3.07 to 1 ratio on the NYSE and a 2.52 to 1 ratio on the Nasdaq
The S & P index recorded a new 52-week High and 17 new lows, while the Nasdaq recorded six new highs and 32 new lows.
(Reporting by Medha Singh in Bengaluru, edited by Anil D & # 39; Silva)