Geopolitical uncertainty on Wednesday brought a red session to the US stock exchanges. The Dow Jones broke its series of 9 consecutive gains and dropped by 34.64 points to finish the session at 22,048.7 points, with Walt Disney the most losing company of the 30 companies making up the benchmark. The company posted better-than-expected earnings for the quarter, but also an unexpected decline in sales, which resulted in a 4% drop for the day.
Expectedly, the best of the day was the shares of the arms industry. The broader S&P500 ended in neutral territory, with the Nasdaq lagging behind, down 0.28% to 6 352.33 points. Wells Fargo Bank Strategies have pointed out that US stocks are traded at their highest levels for the past 10-15 years, which they think may mean the market is overvalued.
Most notable loser on the corporate front was Walt Disney, which lost almost 4 percent of market value. Disney said at the publication of its quarterly figures that in the United States in 2019, it will stop offering films on Netflix. Instead, the company is setting up its own streaming service. Netflix fell after the news.
Other companies that opened the books included Office Depot, pharmacy Mylan and fast food chain Wendy’s. The price of the first company dropped more than a quarter. Mylan and Wendy’s managed to charm investors: they gained about 1 and almost 4 percent respectively.
Herzt, which reported good progress around the company’s reorganization, received 23 percent. Internet travel company Priceline plunged due to disappointing expectations. Tourist review site TripAdvisor also came with careful forecasts and ended 2.5 percent lower.
Raw material trader and miner Glencore has picked the benefits of higher commodity prices in the first half of 2017. The adjusted operating profit increased by two thirds to $6.7 billion. Net profit was $2.5 billion, while loss of $369 million in the same period last year.
The Swiss company has been busy for two years to rebalance the debt after the debts were overestimated. For this purpose, it sold a number of items to reduce costs. In the first six months, the group’s debt burden decreased further to $13.9 billion.
Glencore thinks that the increasing demand for electric cars will play the company in the card. The demand for copper, cobalt, zinc and nickel will increase as a result.
