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Stocks end mixed after wild ride

Thursday, October 16, 2014 - 02:14

The Dow fought back from a roughly 200 point deficit to end the day flat, but it fell for a sixth straight session. Fred Katayama reports.

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A roller-coaster ride on Wall Street: The Nasdaq fell into correction territory and the Dow fell more than 200 points on concerns over global growth before bouncing back. Luring buyers back in: the head of the St. Louis Fed said the central bank may want to keep buying bonds. Investors could also take some solace in economic data. A fall in U.S. jobless claims and a sharp increase in industrial production offset deflation concerns in Europe. The major indices finished flat, but the Dow fell for the sixth straight session. Small cap stocks rose for the third straight session. Short seller Carson Block says stock valuations have to come down. SOUNDBITE: Carson Block, founder, Muddy Waters Research, saying (ENGLISH): "Equity markets' valuations were stretched, frothy in some areas. This could be finally the realization of that state of affairs." On the earnings front, Google grew quarterly revenue 20 percent. But it missed Wall Street's profit and revenue targets, and paid clicks grew just 2 percent from the previous quarter. Its shares fell in after hours trading. Goldman Sachs shares fell even though the investment bank crushed analysts' estimates with quarterly profit that soared 50 percent. One analyst said he was still concerned about its revenue outlook because Goldman used cost cutting to boost profit. Among the biggest losers on the NYSE: Baker Hughes. Shares of the oilfield services company plummeted because its 10 percent profit growth fell far short of estimates. The biggest loser on the Nasdaq: Netflix. The video streaming service shed a about fifth of its value. It signed up far fewer subscribers than expected. And it'll face new competition from CBS and HBO, both of which are launching video streaming services online. HBO's parent, Time Warner, rose sharply. Also rising: Gap. The retailer OK-ed a half-billion dollar stock buyback program. Chesapeake Energy surged after it sold some gas and oil assets to Southwestern Energy for $5.4 billion. In Europe, deflation concerns sank stocks to a 13-month low, but they trimmed their losses before the close.

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Stocks end mixed after wild ride

Thursday, October 16, 2014 - 02:14