Dow Jones Closes Lower on Disappointing Earnings

Dow Jones closed 0.15% lower yesterday on the back of disappointing earnings and the British Parliament rejecting PM Johnson’s rapid timetable for the proposed split.

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The insurance company Travelers dragged the index lower after it reported that its earnings fell short of expectations, pushing the stock  8.2% lower on Tuesday. Furthermore, McDonald’s shares slipped more than 5% after its earnings fell short of estimates for the first time in two years.

“Earnings have been mixed, but I still believe they’re going to surprise to the upside,” said Ken Engelke, chief economic strategist at Capitol Securities Management.

Dow Jones has now registered the third lower high since making the record high of 27398.7 in July. The price action threatens to move lower and close the October 11 gap around the 26500 mark. On the upside, the down-slipping trend line that connects lower highs comes near the 27200 handle.

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