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S&P 500 winning streak ends after mixed earnings

S&P 500 winning streak ends after mixed earnings

Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK: The S&P 500's five-session winning streak ended on Wednesday (Feb 6) following a batch of mixed earnings that included weak results from videogame companies.

The index, viewed as the best proxy for the overall stock market, finished 6.09 points (0.22 per cent) lower at 2,731.61.

The Dow Jones Industrial Average shed 21.22 points (0.08 per cent) to close at 25,390.30, while the tech-rich Nasdaq Composite Index fell 26.80 points (0.36 per cent) to 7,375.28.

Analysts have been warning that Wall Street could be primed for a pause or pullback after a nearly unbroken push higher since late December.

Tom Cahill of Venture Wealth Management said the overall earnings season has been "pretty good."

Still, companies that reported after the market closed on Tuesday and on Wednesday had a mixed performance, with General Motors' shares climbing 1.6 per cent and Disney shedding 1.1 per cent.

Videogame developers Electronic Arts and Take-Two Interactive dived more than 13 per cent on disappointment over their results as the companies contend with the wildly popular Fortnite game from Epic Games/Tencent.

Another game company, Activision Blizzard, lost 10.1 per cent.

Analysts said President Donald Trump's State of the Union address on Tuesday night did not have much effect on stocks.

Investors took a wait-and-see view of the administration's latest commentary on trade talks with China, which are set to resume next week.

A note from Eurasia Group said Trump gave "little indication that he is preparing to deviate from his position on major policy issues" and predicted Washington would remain "volatile" in 2019 as the White House faces opposition from congressional Democrats over immigration and other hot-button issues.

Source: AFP/de


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