Wall Street Dips as Telecoms slump; AmEx Surges

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US stocks ended a choppy session on Thursday with a slight decline as investors digested the latest round of earnings, with a sharp drop in telecoms offset by gains in healthcare. Telecoms were down 2 percent, their biggest percentage decline in five weeks, as Verizon lost 2.5 percent. The company added fewer than expected wireless subscribers in the third quarter and revenue fell short of expectations. 

 

The sector was also pressured late in the session as AT&T extended earlier losses after a report the company had discussed the idea of a merger with Time Warner during recent meetings. AT&T shares ended down 1.9 percent while Time Warner advanced 4.7 percent. But a 10.3 percent jump in American Express helped offset the decline after the credit card issuer posted strong quarterly results and boosted its 2016 forecast. The gains gave the stock its best day in over seven years. 

 

"The fact is there is a lot of positive feelings, at least in the short term, because the earnings season is going so well, the financials particularly," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago. "That being said, this is on really low expectations."