Markets Move Lower in Early Wednesday Trading

Equities edged lower on Wednesday as investors digested another slate of corporate earnings with railroad stocks sinking to weigh on industrials while health care components firmed.

Markets have posted marginal moves this week as the second-quarter earnings season picked up pace, with a host of mixed results. Industrials on the Standard & Poor’s 500 sank 0.8% after CSX (CSX), a railroad operator, plunged 8.9% after saying late Tuesday its results came in below expectations.

Union Pacific (UNP) sank 4%, Norfolk Southern (NSC) was down 4.6% and Kansas City Southern (KSU) was off by 3.5%. Heavy equipment company Caterpillar (CAT) fell 1.9% in one of the worst losses on the Dow Jones Industrial Average, while Walgreens Boots Alliance (WBA) was off by 2% in the steepest decrease among the blue chips.

The S&P’s health care group was 0.3% higher as Abbott Laboratories (ABT) gained more than 4% amid the company’s better-than-expected quarterly earnings and an increase in its full-year forecast.

Also in earnings, Textron (TXT) fell 5.3% after reporting mixed quarterly results, with revenue that came in below analysts’ expectations. Cintas (CTAS) climbed 8.4% as the maker of business uniforms said late Tuesday its fiscal fourth-quarter results were ahead of the Street’s views.

Farfetch (FTCH) was up 4.6% after BTIG initiated coverage on the stock with a buy and a $26 price target. Levi Strauss (LEVI) fell 5.5% after Goldman Sachs lowered its rating on the shares to sell from neutral and cut the price target to $19 from $21.

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