cloudy.png
Saturday January 22nd, 2022 9:16AM

Stocks wobble lower as investors monitor inflation, earnings

By The Associated Press
Related Articles
  Contact Editor

Technology companies led stocks lower on Wall Street in afternoon trading Thursday as investors gauged the latest data on inflation and company earnings.

The S&P 500 fell 1.1% as of 3:24 p.m. Eastern. The benchmark index is coming off two days of gains following daily losses since the first day of trading in 2022.

The Dow Jones Industrial Average fell 115 points, or 0.3%, to 36,178 after giving up an early gain, and the tech-heavy Nasdaq fell 2.1%.

Big technology stocks, which have an outsized influence on the S&P 500 because of their high valuations, accounted for a big share of the decline, outweighing gains elsewhere in the market. The sector has been slipping in January as investors shift money in anticipation of rising interest rates, which tend to make pricey tech stocks less attractive.

Chipmaker Nvidia fell 4.4% and software maker Adobe fell 2.4%.

“It is a little bit of a confusing narrative for the first two weeks of this year,” said Scott Ladner, chief investment officer at Horizon Investments. “The market is really coming to grips with selling really highly valued, profitless tech names and finding other places to put money.”

Many of the big tech companies with solid revenue and profits, such as Apple and Microsoft, will suffer less than their counterparts that have little revenue, but rosy projections, he said.

Health care stocks, communication services firms and a mix of companies that rely on direct consumer spending also fell. Pfizer fell 2%, Facebook parent Meta Platforms dropped 1.4% and Amazon slid 2%.

Industrial companies were among the few gainers. Delta Air Lines rose 2.3% after reporting surprisingly good fourth-quarter financial results. Other airlines also got a boost. American Airlines rose 4.6% and United Airlines rose 3.6%.

Financial stocks also gained ground as investors look ahead to quarterly report cards Friday from several major banks, including Citigroup, JPMorgan Chase and Wells Fargo.

Bond yields mostly edged lower. The yield on the 10-year Treasury slipped to 1.70% from 1.73% from late Wednesday.

Inflation has been a key focus for investors as they try to gauge how rising prices will impact businesses, consumers and the Federal Reserve's policy on interest rates in 2022.

The Labor Department on Thursday reported that prices at the wholesale level surged by a record 9.7% for all of 2021, setting an annual record and providing further evidence that inflation is still present at all levels of the U.S. economy. The report follows Wednesday's release of consumer price data for December, which showed that inflation jumped at its fastest pace in nearly 40 years last month.

Investors are also monitoring how the latest wave of COVID-19 cases affects the global economy. In Asia, the omicron variant has swept across Australia and is gaining ground in other countries despite high vaccination rates, mask requirements and strict border policies.

Japan reported more than 13,000 new infections on Wednesday, the highest level in four months. China, whose zero-COVID policies are being challenged by outbreaks just weeks ahead of the Beijing Winter Games, is testing and in some cases locking down entire cities.

Markets in Asia and Europe were mixed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden to double free COVID tests, add N95s, to fight omicron
President Joe Biden says the government plans to double to 1 billion the rapid, at-home COVID-19 tests to be distributed free to Americans
12:38PM ( 23 minutes ago )
Stocks wobble lower as investors monitor inflation, earnings
Stocks wobbled lower Thursday afternoon on Wall Street as investors gauged the latest data on inflation and company earnings
12:29PM ( 32 minutes ago )
San Diego supervisor's house fire is considered suspicious
Police are treating a fire at the home of the San Diego County Board of Supervisors chair and a prominent labor leader as suspicious
12:17PM ( 44 minutes ago )
Associated Press (AP)
Fed nominee Brainard: Fighting inflation is top priority
Lael Brainard, President Joe Biden’s nominee for the Federal Reserve’s No. 2 spot, said Thursday that combating high inflation is the Fed’s top priority and promised the Fed could bring it down without sacrificing job growth
11:56AM ( 1 hour ago )
EXPLAINER: How Europe is trying to deal with its gas crisis
Europe's natural gas crisis isn’t letting up
11:08AM ( 1 hour ago )
Stocks wobble as investors monitor inflation, earnings
Stocks wobbled between small gains and losses in morning trading Thursday on Wall Street as investors gauged the latest data on inflation and company earnings
10:38AM ( 2 hours ago )
AP Business
EU rejects merger of SKorean shipbuilders Daewoo, Hyundai
The European Union has rejected the merger between South Korean shipbuilders Hyundai and Daewoo
9:50AM ( 3 hours ago )
After 8,000 Delta employees infected, airline sees recovery
Delta Air Lines is reporting a $408 million loss for the final quarter of 2021, dragged down by a COVID-19 surge that rocked the airline in December, and the carrier expects to suffer one more quarterly loss before travel picks up in the spring and summer
8:17AM ( 4 hours ago )
Delta loses $408 million; 8,000 employees hit with infection
Delta Air Lines is reporting a $408 million loss for the final quarter of 2021, dragged down by a COVID-19 surge that rocked the airline in December, and the carrier expects to suffer one more quarterly loss before travel picks up in the spring and summer
7:45AM ( 5 hours ago )
AP Business - Corporate News
Stocks open a bit higher on Wall Street, still down for year
Stocks are opening modestly higher on Wall Street, potentially setting the S&P 500 up for a third gain in a row after what has been a weak start to the year
9:46AM ( 3 hours ago )
Wholesale prices jumped a record 9.7% in 2021
Prices at the wholesale level surged by a record 9.7% for all of 2021, setting an annual record and providing further evidence that inflation is still present at all levels of the U.S. economy
9:37AM ( 3 hours ago )
U.S. jobless claims rise by 23,000 to 230,000
The number of Americans applying for unemployment benefits rose last week to the highest level since mid-November
9:09AM ( 3 hours ago )
AP Business - Economy
Asian stocks retreat as inflation augurs Fed rate hikes
Shares are mostly lower in Asia after the latest report of surging prices in the U.S. appeared to keep the Federal Reserve on track to raise interest rates in coming months
1:44AM ( 11 hours ago )
Asian stocks mixed as inflation augurs Fed rate hikes
Shares are mixed in Asia after the latest report of surging prices in the U.S. appeared to keep the Federal Reserve on track to raise interest rates in coming months
11:19PM ( 13 hours ago )
Stocks rise as inflation report keeps rate hikes on track
Stocks closed higher on Wall Street Wednesday after the latest report of surging prices appeared to keep the Federal Reserve on track to raise interest rates later this year
4:59PM ( 20 hours ago )
AP Business - Financial Markets
Biden to double free COVID tests, add N95s, to fight omicron
President Joe Biden says the government plans to double to 1 billion the rapid, at-home COVID-19 tests to be distributed free to Americans
12:38PM ( 23 minutes ago )
San Diego supervisor's house fire is considered suspicious
Police are treating a fire at the home of the San Diego County Board of Supervisors chair and a prominent labor leader as suspicious
12:17PM ( 44 minutes ago )
Hawks trade Cam Reddish to Knicks for 2022 first-round pick
The struggling Atlanta Hawks have traded forward Cam Reddish to the New York Knicks for a protected 2022 first-round draft pick
12:14PM ( 48 minutes ago )
RNC threatens to stop candidate participation in debates
The Republican National Committee says it is planning a rules change that would force presidential candidates seeking the party’s nomination to sign a pledge saying they will not participate in any debates sponsored by the Commission on Presidential Debates
12:08PM ( 53 minutes ago )
Biden heads to Senate with voting legislation on the line
President Joe Biden is set to meet privately with Senate Democrats at the Capitol, a visit intended to deliver a jolt to the party’s long-stalled voting and elections legislation
11:57AM ( 1 hour ago )