Despite string of strong earnings reports, shares continued to trade in red territory by midday trade on Wednesday as investors’ sentiment was weighed down by the release of unexpectedly sour U.S. GDP data. The disappointing GDP data also overshadowed better than expected ADP private sector job data.
At last check, the Dow Jones Industrial Average Index was slipping 0.06%; the NASDAQ Composite Index was inching up 0.06% while the S&P 500 Index was losing 0.11%.
Even though fiscal fourth quarter earnings fell short of analysts’ forecast, shares of internet retailer Amazon.com Inc. (NASDAQ: AMZN
) leaped nearly 6% by midday trade on Wednesday after the company reported 70% revenue growth in its Kindle e-book business. The Company has also invested significant amount of money towards developing new products such as Kindle Hardware tablet to counter Apple, enhancing infrastructure, which analysts say help the company to generate strong return in the long term.
Shares of Research in Motion (NASDAQ: RIMM
) slumped 8%, at last check. The Company, which officially changed its name to Blackberry, rolled out its new smartphone model, the Blackberry10 or BB10 on Wednesday.
MeadWestvaco Corp. (NYSE: MWV
) fell on Wednesday after the packaging company reported fourth-quarter adjusted earnings that failed to meet analysts’ expectations. The Company attributed softness in the U.S. economy and tough macroeconomic environment abroad for its lackluster results.
Facebook Inc. (NASDAQ: FB
) and Qualcomm Inc. (NASDAQ: QCOM
) are scheduled to report quarterly results after the closing bell.
Earlier today a data provided by the U.S. Commerce Department showed that economic activities in the fourth quarter shrunk. The GDP in the fourth quarter contracted 0.1% YOY while economists were expecting it to rise by 1%. This was however first estimation and the figures are subject to a revision.
The U.S. private sector added more jobs than expected in January, according to ADP and Moody’s Analytics. The report showed that 191,000 jobs were added while economists’ forecast was for 165,000 new job additions.
In Europe, all leading benchmark indexes ended lower on Wednesday with Stoxx 600 ending down 0.58% while FTSE 100 slipping 0.25%.