Energy exploration and production companies have been a clear area of weakness again this reporting season, said Diane Jaffee, a senior portfolio manager at TCW.
“A host of E&P companies have reported over the past couple of days and it’s been widely discouraging,” she told MarketWatch.
Shares of Diamondback Energy /zigman2/quotes/201200230/composite FANG -1.02% lost 14.44% Wednesday, its largest ever percentage fall according to Dow Jones Market data, after the shale operator reported a dip in profits due to lower oil and gas prices. Shares of Occidental Petroleum Corp. /zigman2/quotes/207018272/composite OXY -5.06% shed 5.49%.
Shares of Chesapeake Energy Crop. /zigman2/quotes/201364537/composite CHK -2.25% plunged 29.15% to 91 cents after reporting disappointing third-quarter results on Tuesday.
Chicago Fed President Charles Evan on Wednesday said the U.S. economy may not need additional interest rate cuts, noting that the economy appears “quite resilient,” in an interview with Yahoo Finance.
New York Federal Reserve Bank President John Williams was scheduled to speak at 6:30 p.m. ET at a global risk forum in New York.
Which stocks are in focus?
Shares of Xerox Holdings Corp . /zigman2/quotes/201169674/composite XRX -5.53% closed higher after the Wall Street Journal said the company is considering a cash-and-stock offer for personal-computer and printer-maker HP Inc . /zigman2/quotes/203461582/composite HPQ +0.87% , which has a market value of about $27 billion. HP gained 6.36%.
Shares of Humana /zigman2/quotes/203095337/composite HUM +1.69% rallied 3.46% Wednesday, after the health care services company reported third-quarter profit and revenue that beat expectations, and provided an upbeat outlook. CVS Health /zigman2/quotes/209664499/composite CVS -1.49% rose on stronger than expected earning also.
WW International Inc ., /zigman2/quotes/200896816/composite WW -0.83% the company formerly known as Weight Watchers, raised its outlook for the year but the after-hours stock movement indicated that the hike left too much chance of a disappointment for Wall Street’s taste. The stock closed down 14.82%.
Wendy’s Co . /zigman2/quotes/204070192/composite WEN +0.38% shares fell after the fast-food chain reported third-quarter results that beat expectations and raised its full-year guidance.
Shares of New York Times Co. /zigman2/quotes/202090840/composite NYT +1.58% slipped 3.85% after the media company said it sees continued turbulence in digital ads as it reported its quarterly results.
Japanese technology company SoftBank Group Corp . /zigman2/quotes/207303954/delayed JP:9984 +1.57% reported hefty losses as its earnings were hammered by office-space sharing startup WeWork. Japan-traded shares rose 0.65%.
How are others assets trading?
The yield of the 10-year U.S. Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -1.11% fell to 1.814% Wednesday, from 1.865% late Tuesday when it registered its biggest one-day rise in five weeks.
December gold on Comex gained 0.6% after losing ground at a psychologically important level at $1,500 on Tuesday.
Oil slipped, with West Texas Intermediate crude for December delivery settling down fractionally at $56.35 a barrel, after settling 1.2% higher on Tuesday on the New York Mercantile Exchange. Supply rose sharply, a government agency said Wednesday.
The ICE U.S. dollar index /zigman2/quotes/210598269/delayed DXY -0.16% , a gauge of the greenback’s performance against six major rivals, fell 0.06% to 97.93, after gaining 0.4% a day ago.
In Asia overnight, the China CSI 300 /zigman2/quotes/210598128/delayed XX:000300 +0.27% fell 0.45%, the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.22% declined 0.4%. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.74% ended little-changed, while Japan’s NIKKEI 225 Index /zigman2/quotes/210597971/delayed JP:NIK +0.13% edged up 0.2%. In Europe, the Stoxx Europe 600’s /zigman2/quotes/210599654/delayed XX:SXXP -1.44% rose 0.2%.
<STRONG>Additional reporting by Rob Schroeder</STRONG>