Stocks end mixed after another wobbly day on Wall Street – WHIO TV 7 and WHIO Radio
NEW YORK – (AP) – Stocks on Wall Street posted only meager gains on Wednesday after a broad rally led by tech companies faded in the late afternoon, leaving the market little changed a day after a big sale.
The lackluster finish punctuated a wobbly start for stocks, the latest turbulence for the market as traders brace for more earnings reports from big US companies this week.
The S&P 500 saw most of a midday rally evaporate and ended with a gain of just 0.2%. The Nasdaq barely finished in the red after the rebound in tech stocks ended. The Dow Jones Industrial Average edged up 0.2%.
The indices rallied from a strong finish late Monday only to tumble Tuesday. They are all down 1.5% or more so far this week.
“We’re kind of in this period where we’re ahead of the Fed, earnings are okay, but the forward-looking view of the sustainability of earnings growth, those are certainly open questions for people in this environment,” he said. Eric Freedman, chief investment officer at US Bank Asset Management Group.
The S&P 500 rose 8.76 points to 4,183.96, while the Dow Jones added 61.75 points to 33,301.93. The Nasdaq slipped 1.81 points to 12,488.93.
Small company stocks lost ground. The Russell 2000 fell 6.44 points, or 0.3%, to 1,884.04.
Investors looked at the latest batch of corporate earnings on Wednesday, including the results of several large technology and communications companies.
Software giant Microsoft rose 4.8% after reporting strong earnings for its latest quarter. Payment processing giant Visa jumped 6.5% after reporting a surge in profits fueled by a surge in spending on the company’s namesake credit and debit card network.
Alphabet, Google’s parent company, fell 3.7%, after posting its weakest quarterly revenue growth since 2020. Facebook’s parent company Meta Platforms jumped 14.6% in trading after the office hours after its latest quarterly results, which beat Wall Street estimates.
Investors also focused on earnings from industrial companies and various retailers. Boeing fell 7.5% after reporting a loss much worse than Wall Street expected. Chipotle rose 2.6% after posting strong financial results.
Twitter, Apple and Amazon will release their results on Thursday.
The latest round of corporate earnings comes amid lingering concerns over rising inflation and central bank plans to raise interest rates to blunt the impact of rising costs on businesses and consumers. Investors are watching closely to see how companies have fared in the face of supply chain issues and rising costs while gauging how consumers are coping with higher prices for everything from food to clothes and clothing. gasoline.
“Everyone is facing these kinds of risks that seem to get bigger as the days and months go by,” said Katie Nixon, chief investment officer of Northern Trust Wealth Management.
The US Federal Reserve is expected to hike rates aggressively as it steps up its fight against inflation. The Fed chairman indicated that the central bank may raise short-term interest rates to double the usual amount in upcoming meetings, starting next week. It has already raised its key overnight rate once, the first such hike since 2018.
Bond yields generally rose throughout the year as investors braced for higher rates. The 10-year Treasury yield rose to 2.83% from 2.77% on Tuesday evening.
Wall Street remains focused on the inflation path amid lingering threats from Russia’s war on Ukraine and the virus pandemic.
“We just keep moving more areas of uncertainty onto the uncertainty pile,” Nixon said.
Natural gas prices jumped 24% in the past day in Europe and the euro weakened after Russia announced it would cut supplies to Poland and Bulgaria. Natural gas and oil prices had already risen as the pandemic subsided and demand increased, but the Russian invasion of Ukraine added to the price hike. Crude oil and natural gas prices have surged so far in 2022, making gasoline and heating more expensive for consumers.
Strict lockdown measures in China have also added to concerns about slowing economic growth due to damage to the world’s second-largest economy. The flow of industrial goods has been disrupted by the suspension of access to Shanghai, home to the world’s busiest port, and other industrial cities including Changchun and Jilin in northeast China.
Veiga reported from Los Angeles.
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