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Dow closes lower on General Electric's stock drop

22 July 2017

Moody's reported adjusted earnings of $1.51 per share on $1 billion in revenue, compared to the consensus estimates of $1.34 per share and $959.2 million in revenue.

GE reported $29.6 billion in revenue for the second quarter, down 12 percent from the same period a year ago.

General Electric Co. shored up its cash performance as Jeffrey Immelt tackled one of investors' most pointed concerns in his final days as chief executive officer.

GE's cash flow was below expectations and also weighed on the stock, said Jeff Windau, analyst at Edward Jones.

Today's selloff would mark the eighth straight quarter that GE shares declined on the day earnings results were reported.

The former head of GE Healthcare, Flannery outlined the review he's undertaking when his promotion to the company's top job was announced in mid-June.

United Kingdom inflation surprises with slowdown, easing pressure on Bank of England
Lucy O'Carroll, of Aberdeen Asset Management, predicted: "This is going to kill the chances of a rate rise in the short term". The pound also fell almost 1% against the euro to 1.1271 euros.

Shares fell 2.8% to $25.94 in afternoon Friday trading, leaving the price about 18% below where it started the year. "People's openness to rethinking things or thinking about things differently or challenging many things we've taken for granted is encouraged, and people get excited about that". Industrial cash flow was $1.5 billion, much better than in the prior quarter.

At GE Power, the world's largest maker of gas turbines, revenue climbed 5 percent.

GE during the second quarter reached an agreement with the U.S. Justice Department that closed the merger with oilfield services company Baker Hughes. Net profit fell to $1.19 billion, or 13 cents a share, from $2.76 billion, or 30 cents a share, in the same period a year ago.

In the second quarter, Earnings per Share came in at 28 cents, as opposed to expectations of 25 cents.

On Friday, GE said it cut $593 million in industrial costs in the second quarter and is on track to meet or beat its $1 billion savings goal by the end of the year.

Dow closes lower on General Electric's stock drop