The Nasdaq finished 0.3% lower ahead of key earnings reports from Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL), which are expected to show strong growth but with all eyes on the outlook for the remainder of the year.
The Dow Jones and S&P 500 managed a flat finish, as key consumer-focused companies reported.
GE’s revenue falls short of the mark
The sprawling General Electric (NYSE: GE) conglomerate reported a 12% fall in revenue to US$17 billion, with its industrial products and aviation businesses the biggest detractors.
According to management, an 8% drop in orders was due to the company selling large, expensive equipment, hence making it a long not short-cycle business that would benefit from the pandemic.
On the positive side, GE’s renewable energy division grew revenue by 2% and narrowed its loss. GE stock finished the day 0.6% lower.
3M delivers big quarterly outperformance
3M Co (NYSE: MMM) shares fell over 2% despite delivering its biggest quarterly earnings outperformance in over a decade.
Sales in its industrial product business, including PPE equipment, jumped 14% on 2020 levels. Meanwhile, transportation and electronics were 13% higher and consumer sales including Post It notes grew by 10%.
Of biggest concern for investors were comments that management was beginning to see cost inflation on their key raw inputs.
US stock market movers
Here’s what happened to other popular US stocks overnight:
- United Parcel Service (NYSE: UPS) up 10.4%
- Berkshire Hathaway (NYSE: BRK.B) up 1.0%
- Apple (NASDAQ: AAPL) down 0.2%
- Amazon (NASDAQ: AMZN) up 0.3%
- ARK Innovation ETF (NYSE: ARKK) down 1.2%
- Tesla (NASDAQ: TSLA) down 4.5%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to rise when the market opens on Wednesday. For all the latest, check out Rask Media’s ASX 200 new report.
