US stocks dip as weak China data offsets good earnings

Telegram från AFP / Omni
18 okt. 2019, 15.47

Wall Street stocks dipped early Friday following solid earnings from Coca-Cola and American Express that were offset by a weak Chinese economic report and uncertainty over Brexit.

China reported growth of just 6.0 percent in the third quarter, its slowest rate in nearly three decades, due in part to the hit from a lengthy trade war with the United States.

Trade between the United States and Europe was also in focus as new US tariffs on some European goods went into effect, earning a swift threat of retaliation by the EU.

Meanwhile, British Prime Minister Boris Johnson launched a charm offensive to sell his Brexit deal to skeptical MPs ahead of a weekend vote that is expected to be tight.

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.2 percent at 26,986.50.

The broad-based S&P 500 was a hair lower at 2,997.78, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 8,150.57.

Dow member Coca-Cola gained 1.4 percent as it lifted some full-year revenue and profit targets following increased profits in the third quarter.

The beverage giant cited solid sales of soda and innovative products like smaller drink cans that offset the hit from a strong dollar.

American Express added 0.2 percent as it reported a 6.1 percent jump on profits to $1.8 billion and offered a fairly upbeat appraisal of the economy.

Chief Executive Steve Squeri said the trends among customers are "consistent with an economy that continues to grow, albeit at a more modest pace than last year."