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US markets extend losses on Wednesday

25 Oct 2018 Evaluate

Extending previous session losses, the US markets ended sharply lower on Wednesday, with the Dow declining to its lowest closing level in over three-months, while the Nasdaq and the S&P 500 tumbled to five-month closing lows. The renewed selling pressure on Wall Street largely reflected amid another negative reaction to the latest batch of earnings news from several big-name companies. Shares of AT&T (T) moved substantially lower after the telecom giant reported third quarter earnings that came in below street estimates. Delivery giant UPS (UPS) also fell sharply after reporting third quarter earnings that matched estimates but weaker than expected revenues.

Sentiments also remained under pressure with the release of a report from the Commerce Department showing a steep drop in new home sales in the month of September. The report said new home sales plunged by 5.5% to an annual rate of 553,000 from the revised August rate of 585,000. Street had expected new home sales to edge down to a rate of 625,000 from the 629,000 originally reported for the previous month. With the substantial decrease, new home sales fell to their lowest level since hitting a rate of 546,000 in December of 2016.

Dow Jones Industrial Average slipped 608.01 points or 2.41 percent to 24,583.42, Nasdaq declined 329.14 points or 4.43 percent to 7,108.40 and S&P 500 was down by 84.59 points or 3.09 percent to 2,656.10.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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