US STOCKS-Wall Street dips as weak corporate guidance fuels recession fears

Reuters

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      AT&T gains on subscriber adds
    

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      General Dynamics slides after weak outlook
    

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      Tesla results expected after the bell
    

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      Indexes down: Dow 0.2%, S&P 500 0.35%, Nasdaq 0.65%
    

  
 (New throughout, adds NEW YORK dateline, changes byline)
    By Stephen Culp
       NEW YORK, Jan 25 (Reuters) - Wall Street turned lower on
Wednesday as a string of corporate earnings ran the gamut from
downbeat to dismal, reviving worries over an economic downturn.
    All three major U.S. stock indexes were red, but off session
lows. The tech-laden Nasdaq was down the most after Microsoft
Corp  MSFT.O , the first major technology firm to post quarterly
results, offered dour guidance and raised red flags with respect
to its megacap peers which have yet to report.
    "The slowdown in the economy and in the labor market is
starting to materialize," said Oliver Pursche, senior vice
president at Wealthspire Advisors, in New York.
    "For most of last year, the big concern was inflation and
the only way to bring it down is to cool the economy," Pursche
added. "We're doing that. It's a natural progression, but it's
unnerving to investors."
    Fourth-quarter earnings season has shifted into overdrive,
with 95 of the companies in the S&P 500 having reported. Of
those, 67% have beat consensus estimates, well below the 76%
average beat rate over the past four quarters, according to
Refintiv.
    Analysts now see aggregate S&P 500 earnings dropping 3.0%
year-on-year, nearly double the 1.6% drop seen on Jan. 1, per
Refinitiv.
    The Dow Jones Industrial Average  .DJI  fell 67.67 points,
or 0.2%, to 33,666.29, the S&P 500  .SPX  lost 14.05 points, or
0.35%, to 4,002.9 and the Nasdaq Composite  .IXIC  dropped 74.04
points, or 0.65%, to 11,260.23.
    Most of the 11 sectors of the S&P 500 were red, utilities
 .SPLRCU  suffering the largest percentage loss.
    Boeing Co's  BA.N  shares reversed an earlier dip, eking out
a 0.8% gain after the plane maker posted widening losses for
2022, but reported its first positive cash flow since 2018 on
the strength of commercial airplane deliveries.
    Abbott Laboratories  ABT.N  dropped 2.0%, as
weaker-than-expected medical device sales weighed on the stock. 
    Among gainers, News Corp  NWSA.O  jumped 5.2% Rupert Murdoch
withdrew a proposal to reunite News Corp and Fox Corp.
    AT&T Inc  T.N  also delivered disappointing guidance but its
renewed focus on its telecoms business helped boost subscriber
numbers, sending its shares up 6.0%.
    General Dynamics Corp  GD.N  beat quarterly expectations,
but a weak 2023 forecast helped send the defense contractor's
shares sliding 3.2%.
    Electric automaker Tesla Inc  TSLA.O  is among the more
closely watched corporate results expected after the closing
bell.
    Finally, in a post-script to Tuesday's technical glitch
which halted the opening auctions for a spate of stocks and
prompted a review by the U.S. Securities and Exchange Commission
(SEC), the New York Stock Exchange (NYSE) said a manual error
resulted in the snafu which caused widespread confusion at the
opening bell.
    Declining issues outnumbered advancing ones on the NYSE by a
1.28-to-1 ratio; on Nasdaq, a 1.36-to-1 ratio favored decliners.
    The S&P 500 posted 6 new 52-week highs and 1 new lows; the
Nasdaq Composite recorded 52 new highs and 26 new lows.  
 (Reporting by Stephen Culp; Additional reporting by Shreyashi
Sanyal and Johann M Cherian in Bengaluru; Editing by Aurora
Ellis)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))

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