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Overnight Markets: Wall Street ends flat as media stocks lag

Overnight Markets: Wall Street ends flat as media stocks lag

by Himanshu Singh Sep 08, 2017 at 04:35

Wall Street ended little changed on Thursday led by banks, insurers and media companies as another massive hurricane approached the US.

The Dow Jones Industrial Average fell 22 points, or 0.1%, to 21,786, the S&P 500 was flat at 2,465 and the Nasdaq Composite added five points, or 0.07%, to 6,398.

Media shares were rattled by a Comcast executive’s pronouncement that it expects to shed as many as 150,000 subscribers this quarter, which sent the cable giant’s shares down 6.24%. The S&P 500′s media index ended the day with a 3.6% loss.

Walt Disney shares’ plunged 4.4%, weighing heavily on the Dow, after its chief executive reportedly gave a dim outlook for full-year earnings. Others losing ground included Twenty-First Century Fox, down 2.4%, and CBS, down 2.1%.

General Electric also registered a 3.6% drop after JP Morgan earlier reiterated its underweight rating on its shares.

Insurer Travelers lost 1.6%, while reinsurance company Everest Re slumped 6.8%. Cruise companies Carnival and Norwegian Cruise each lost about 2%.

Financial stocks also were in retreat as Treasury bond yields pulled back, threatening lending margins that boost profits. JP Morgan Chase, Goldman Sachs and Bank of America all dropped more than 1%.

In Asia, shares searched for direction on Friday in morning session after the euro jumped following the European Central Bank putting tapering on the table on Thursday.

Japan's Nikkei 225 slipped 0.3%. Across the Korean Strait, the Kospi edged down 0.14%. Down Under, the S&P/ASX 200 shed 0.29%. Greater China markets posted moderate gains. Hong Kong's Hang Seng Index advanced 0.58%. On the mainland, the Shanghai Composite tacked on 0.22% and the Shenzhen Composite gained 0.25%.

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