The benchmark indices of Wall Street, S&P 500 and the Nasdaqin Wall Street are trading stable on Tuesday, January 22 because a mix of earnings reports of the Industry leaders threaten to dampen recent rally. He Dow Jones falls after the decline in 3M shares.
In that context, the Dow Jones it lost 166.54 points, or 0.4%, to 37,835.27 units; Meanwhile he S&P 500 loses 1.65 points to 4,848.78 units; and the Nasdaq Composite reduces 1.99 to 15,358.30 units.
Wall Street falls after forecasts of lower profits in leading companies
The 3M stock fall up to 9.5% after the firm forecast austere annual profits due to the weak outlook for demand; while the papers of General Electric down 2.1% after the engine maker’s gloomy quarterly profit forecast.
The titles of Johnson and Johnson are down 2.5% even after reporting their quarterly results, a push above expectations, while Verizon Communications forecast a strong annual profit and posted the largest quarterly subscriber addition in nearly two years, sending its shares up 4.8%.
Eight of the 11 sectors of the S&P 500 showed increases and the communication services segment led the group with an increase of 0.7%.
All eyes are on earnings prospects for US companiesafter the main banks of the country will begin the results season, which until now has been disparatewith fewer profits than expected.
“A lot of these companies that had a pretty good quarter have issued cautious guidance… so that weighs on people’s minds about whether or not they should be in this market,” said Robert Pavlik, senior portfolio manager. by Dakota Wealth.
S&P 500: More than a third of companies in the index exceeded expectations of profits
From the companies of the S&P 500 that have reported results so far, the 86.6% beat earnings expectationscompared to 93.1% a week ago, LSEG data showed.
He S&P 500 hit an intraday record and closed at an all-time high for the second session on Mondayextending a market bullish streak, fueled by the strength of mega-cap chip and technology stocks.
The industrial average Dow Jones also surpassed the 38,000 point mark for the first time on Monday, winning for the third day of trading.
Wall Street attentive to the advance of the GDP of the fourth quarter to decide the Fed’s rate policy
He personal consumption expenditure (PCE) indexthe indicator Fed’s preferred inflationalong with S&P global PMI readings and a preview of the GDP of the fourth quarter that will be published this week will be key to evaluating the next policy decision of the central bank when it meets on January 31.
Wall Street had lost steam in early 2024, hit by a mix of inflation data and Fed officials clamping down on inflation. market speculation on rate cuts of interest that would arrive in March of this year.
Traders’ expectations for an easing of US monetary policy have now been pushed back to May, with an 84% chance of a cut of at least 25 basis pointsaccording to the CME Group’s FedWatch tool, compared to previous March expectations.
Source: Ambito
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