Just days after the Dow Jones Industrial Average reached a milestone, stocks and exchange traded funds (ETFs) fell into negative territory after some highly anticipated earnings reports that failed to live up to expectations.
Bank of America (NYSE: BAC) reported a $1 billion loss for the third quarter. Consumer credit issues canceled out any earnings from investment banking. Bank of America received two bailouts amounting to $45 billion and has yet to start repaying it, reports Joe Rauch for Reuters.
- iShares Dow Jones U.S. Financial Services (NYSEArca: IYG) is down nearly 2.5% so far today; Bank of America is 12.1%
General Electric (NYSE: GE) reported lower profits, but better-than-expected figures overall. The company’s strength in the industrial and media sectors helped offset the woes in its financial division. Third-quarter earnings fell 42%, which is less than what analysts had feared, reports Bob Sechler for The Wall Street Journal.
- WisdomTree Equity Income (NYSEArca: DHS) is down about 1.5% this morning; GE is 8.1%
Industrial production rose more than analysts predicted last month. Production at factories, mines and utilities rose 0.7% in September. This follows gains of 1.2% in August and 0.9% in July, reports Shobahna Chandra for Bloomberg.
Consumer sentiment is down, however. The index tracking how consumers are feeling fell to 69.4 from 73.5 last month.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.