Wall Street Sells Off on China, Greece Fears
Bareksa • 20 Apr 2015
Investors shunned risk amid new trading regulations in China, renewed worries about Greece running out of money, and tepid U.S. corporate earnings. Bobbi Rebell reports.
Triggering a stock selloff: concerns over Greece and China.
Bareksa.com - A batch of weak earnings results from major companies dampened sentiment. Triggering a stock selloff: concerns over Greece and China.
For the week, it was all arrows facing downward.
LPL investment strategist John Canally:
SOUNDBITE: JOHN CANALLY, ECONOMIST AND INVESTMENT STRATEGIST, LPL FINANCIAL (ENGLISH) SAYING:
"The fear today is that, along with the news over China that they're making it easier for Chinese to short their own stock market, that combination has not been a good one. There's lingering concerns around Greece, where they have another one of those artificial deadlines coming up next Friday."
General Electric earnings rose thanks to cost cuts, but revenue fell because of the strong dollar.
Honeywell's shares fell after the diversified industrial conglomerate reported a fall in quarterly revenue and cut its full-year revenue forecast.
The stronger dollar hurt Honeywell as well as American Express. It helped pull revenue lower at the world's largest credit card issuer. The stock was the biggest loser on the S&P 500.
Topping that index's list of gainers: Mattel. Several brokerages raised their price target the day after the toy maker reported sales that topped estimates for the first time in six quarters.
A plunge in sales and a wider-than-expected loss zapped shares of Advanced Micro Devices. Weak demand for PCs is hurting the chip maker.
In economics news, rising gas and home prices pushed consumer prices up for the second straight month in March. Consumer sentiment rose as well.
Over in Europe, China's moves on margin trading, coupled with an outage on Bloomberg financial terminals used by many traders, fueled a selloff. (Source: Reuters)