Advertisment
U.S. equities fell on Thursday on concerns President Trump's recent controversies will make it less likely for Congress to work with him to pass business-friendly legislation.
The Dow Jones Industrials dropped 274.14 points, or 1.2%, to 21,750.73, Cisco Systems was the biggest decliner on the 30-stock index despite the company posting quarterly results that were largely in-line with expectations.
The index started falling earlier on fears that Gary Cohn, a business friendly advisor to the president, could resign his role as director of National Economic Council because of Trump's remarks following the violent protests in Charlottesville, Va.
The Dow briefly pared losses when reports indicated Cohn has no plans to resign and it was just speculation. Still, the concern remains that members of Congress and others in the business community would not want to work with the President following the backlash that led Trump to dissolve two CEO advisory forums.
The S&P 500 lost 38.1 points, or 1.5%, to 2,430.01, with information technology leading all sectors lower.
The NASDAQ tumbled 123.19 points, or 1.9%, to 6,221.91
Cisco Systems' stock fell 4% after the company said its sales will fall again next quarter, negating a quarterly report that was largely in line with expectations.
Shares of Wal-Mart fell 1.6% despite the company posting better-than-expected quarterly results. L Brands also reported results that topped expectations, but the company lowered its 2017 earnings-per-share guidance, sending the stock down 3.6%.
Overall, calendar second-quarter earnings have been a mixed bag for retailers. Nordstrom posted better-than-expected earnings and sales, sending their stock higher. Meanwhile, earnings and sales for Macy's topped expectations, but investors sent the stock lower after the results came out.
In economic news, weekly jobless claims fell to a seasonally adjusted 232,000 from 244,000. Meanwhile, U.S. factory output slipped in July as auto production fell off.
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.19% from Wednesday’s 2.23%. Treasury prices and yields move in opposite directions.
Oil prices inched higher 23 cents to $47.01 U.S. a barrel
Gold prices gained $11.40 to $1,294.30 U.S. an ounce.
