clearn.png
Wednesday October 27th, 2021 7:13PM

Stocks edge lower ahead of company earnings, inflation data

By The Associated Press

Stocks closed lower on Wall Street after a wobbly day of trading Tuesday as investors wait for more data on inflation and corporate earnings this week.

The major indexes wavered between small gains and losses for much of the day, before the selling gained momentum in the final minutes of trading. The S&P 500 slipped 0.2% after having been up 0.3% in the early going.

The Dow Jones Industrial Average fell 0.3% and the Nasdaq composite slipped 0.1%. Small company stocks, a gauge of confidence in economic growth, fared better than the broader market, driving the Russell 2000 index 0.6% higher.

Technology, communication and health care companies accounted for much of the losses in the S&P 500. Intel closed 2.4% lower, while AT&T slid 2.3% and Google’s parent company Alphabet dropped 1.8%. Johnson & Johnson fell 1.6%.

A mix of retailers and other companies that rely on direct consumer spending gained ground. Ford rose 3.6% and Lowe’s added 0.5%. Real estate and utilities stocks also rose.

The pullback in the S&P 500 marked the index's third straight decline. After two days, the index's losses have offset its 0.8% gain last week.

The selling suggests investors are worried that they will be disappointed by the upcoming third-quarter company earnings reporting season, said Sam Stovall, chief investment strategist at CFRA.

“Investors are looking at higher rates, higher inflation, higher oil prices, and thinking the worst,” Stovall said. "But when we see other factors, such as small-caps doing well or the market not really falling as much as it could, that sort of indicates to me that there is underlying strength and that investors are just waiting for a better re-entry point.”

The S&P 500 fell 10.54 points to 4,350.65. The Dow dropped 117.72 points to 34,378.34. The Nasdaq slipped 20.28 points to 14,465.92. The Russell 2000 rose 13.63 points to 2,234.27. European and Asian markets closed mostly lower.

U.S. crude oil prices closed above $80 a barrel. The yield on the 10-year Treasury fell to 1.57% from 1.60% late Friday. The bond market was closed on Monday for Columbus Day.

The broader market has been choppy for weeks. Investors are trying to figure out how the economy will continue its recovery with COVID-19 remaining a threat and rising inflation potentially crimping consumer spending and corporate finances. The latest round of earnings reports will give Wall Street a clearer picture of how companies fared in the most recent quarter amid a surge in COVID-19 cases. It will also shed some light on how they expect to perform through the rest of the year.

S&P 500 companies are expected to post 27.6% annual earnings growth for the July-September quarter, according to FactSet. That's down from 28.1% growth estimated by analysts in July.

JPMorgan Chase will kick off earnings for banks on Wednesday. Bank of America, Wells Fargo and Citigroup will follow with their latest quarterly results on Thursday.

Investors will also be closely watching the latest updates on inflation from the Labor Department. It will release its Consumer Price Index for September on Wednesday, which is a gauge of how inflation is pressuring costs for consumers. Additional information on inflation pressures for businesses will be released on Thursday when the Labor Department releases its Producer Price Index.

A wide range of industries are feeling the pinch from rising inflation with higher costs for shipping and raw materials. Many companies have warned that their financial results could suffer because of the supply chain problems.

The supply chain crunch has also raised prices on many goods for consumers, which could hurt consumer spending and further stunt the economic recovery. Investors will get an update on consumer spending when the Commerce Department releases its retail sales report for September on Friday.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Coroner: Gabby Petito strangled 3-4 weeks before found
A coroner in Wyoming says slain cross-country traveler Gabby Petito was strangled
3:42PM ( 9 minutes ago )
G20 demands humanitarian access to Afghans, EU pledges cash
The Group of 20 nations have warned about a humanitarian catastrophe in Afghanistan as the European Union pledged 1 billion euros ($1.15 billion) in support for Afghan people
3:38PM ( 14 minutes ago )
Big picture, big data: Swiss unveil VR software of universe
Researchers at one of Switzerland’s leading universities are releasing open-source beta software that allows for virtual visits through the cosmos including up to the International Space Station, past the Moon, Saturn or exoplanets, over galaxies and beyond
3:30PM ( 21 minutes ago )
Associated Press (AP)
EU's first green bond issuance raises $13.8 billion
The European Commission says it has issued its inaugural green bonds, raising 12 billion euros ($13.8 billion) from a sale that attracted strong demand from investors
1:57PM ( 1 hour ago )
Kentucky US Rep. John Yarmuth won't seek reelection in 2022
The chairman of the House Budget Committee says he won't seek another term in next year's election
1:56PM ( 1 hour ago )
G20 pledges money, demands humanitarian access to Afghans
The Group of 20 nations have warned about a humanitarian catastrophe in Afghanistan as the European Union pledged 1 billion euros ($1.15 billion) in support for Afghan people
1:49PM ( 2 hours ago )
AP Business
Stocks open a bit higher ahead of earnings, inflation data
Stocks are edging higher in early trading on Wall Street Tuesday as traders wait for more data on inflation and corporate earnings this week
9:45AM ( 6 hours ago )
GM reaches deal with LG to pay for Bolt battery recall costs
LG Electronics has reached a deal with General Motors to pay as much as $2 billion to reimburse the automaker for the cost of recalling Chevrolet Bolt electric vehicles due to battery fires
8:41AM ( 7 hours ago )
World shares fall as pricier energy feeds inflation fears
Shares have fallen in Europe and Asia as surging prices of oil, coal and other energy fanned fears over inflation
5:12AM ( 10 hours ago )
AP Business - Corporate News
Divorced UK and EU head for new Brexit fight over N Ireland
The European Union and Britain are back to quarreling less than a year after finalizing Brexit
12:53PM ( 2 hours ago )
Companies scraping for staff ahead of the holidays
Companies that typically hire thousands of seasonal workers are heading into the holidays during one of the tightest job markets in decades, making it unlikely they’ll find all the workers they need
12:26PM ( 3 hours ago )
Americans quit their jobs at a record pace in August
One reason America’s employers are having trouble filling jobs was starkly illustrated in a report Tuesday: Americans are quitting in droves
12:21PM ( 3 hours ago )
AP Business - Economy
The Latest: UN chief decries pandemic's harm to the poor
The United Nations chief says the pandemic has forced more than 100 million people into poverty and left over 4 billion people with little or no social support, health care or income protection
8:07PM ( 19 hours ago )
Stocks give up an early gain and end lower on Wall Street
Stocks gave up an early gain and ended lower on Wall Street Monday
4:12PM ( 23 hours ago )
Stocks edge lower as Wall Street prepares for earnings
Stocks edged lower in afternoon trading on Wall Street Monday as communications companies and banks broadly fell
2:47PM ( 1 day ago )
AP Business - Financial Markets
California wildfires destroy mobile homes; 1 man burned
Officials say powerful California wildfires driven by intense winds have caused damage at two mobile home parks and destroyed some trailers and that one man suffered severe burns
11:24AM ( 4 hours ago )
The Latest: FDA considers boosters of Moderna, J&J vaccines
Many Americans who got Pfizer vaccinations are rolling up their sleeves for a booster shot
10:32AM ( 5 hours ago )
France's $35B innovation plan includes nuclear reactor funds
French President Emmanuel Macron has unveiled a 5-year, 30 billion-euro ($35 billion) investment plan for developing innovative technology, including small nuclear reactors, electric cars and greener airplanes
8:35AM ( 7 hours ago )
AP Business - Industries
High winds prompt PG&E to shut power to 25,000 in California
Pacific Gas & Electric has started cutting power to about 25,000 customers in northern and central California as high winds toppled trees, downed power lines and ignited at least one of several fires that forced people to flee from their homes
11:15PM ( 16 hours ago )
California's 'Surf City USA' beach reopens after oil spill
A popular Southern California beach that was closed for more than a week after an undersea pipeline leaked crude into ocean waters has reopened far sooner than many expected
7:10PM ( 20 hours ago )
Mexico presents plan to shutter private power plants
Mexico's president has presented details of a plan that is likely to squeeze out private power generating plants and may provoke complaints under the Mexico-U.S.-Canada free trade accord
3:27PM ( 1 day ago )
AP Business - Utilities
Coroner: Gabby Petito strangled 3-4 weeks before found
A coroner in Wyoming says slain cross-country traveler Gabby Petito was strangled
3:42PM ( 9 minutes ago )
G20 demands humanitarian access to Afghans, EU pledges cash
The Group of 20 nations have warned about a humanitarian catastrophe in Afghanistan as the European Union pledged 1 billion euros ($1.15 billion) in support for Afghan people
3:38PM ( 14 minutes ago )
Big picture, big data: Swiss unveil VR software of universe
Researchers at one of Switzerland’s leading universities are releasing open-source beta software that allows for virtual visits through the cosmos including up to the International Space Station, past the Moon, Saturn or exoplanets, over galaxies and beyond
3:30PM ( 22 minutes ago )
NBC's Tirico expresses disappointment in Gruden's behavior
NBC’s Mike Tirico, who was Jon Gruden’s partner for seven years on ESPN’s “Monday Night Football,” expressed disappointment with Gruden’s behavior after more emails came out on Monday showing a repeated pattern of racist, homophobic and misogynistic comments
3:26PM ( 26 minutes ago )
Coroner: Gabby Petito strangled, died 3-4 weeks before found
A coroner in Wyoming says slain cross-country traveler Gabby Petito died as a result of strangulation
3:15PM ( 37 minutes ago )