|Day's Range||8,135.12 - 8,215.58|
|52 Week Range||6,190.17 - 8,264.78|
Earnings season is underway and corporate buybacks are set to boost earnings per share for S&P 500 companies.
Wall Street's main indexes were set for their third day of losses on Thursday, as Netflix reported a surprise fall in U.S. subscribers in a downbeat start to results from high-growth companies. Losses in Netflix triggered a 1.58% fall in the communication services sector, one of the best-performing S&P sectors so far this year. As second-quarter earnings rolled in this week, the three main Wall Street indexes retreated slightly from record highs and are set for their steepest weekly fall in seven weeks.
U.S. stock indexes edged lower on Thursday as investors awaited more developments around trade, while Netflix posted a surprise drop in U.S. subscribers, kicking off earnings for the FAANG group of stocks on a sour note. Losses in Netflix also dragged the communication services sector, one of the best-performing S&P sectors so far this year, 1.20% lower. "Netflix did nothing to soothe investor concerns around what earnings prospects are likely to unfold over the next couple of weeks," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
U.S. stocks moved higher on Thursday after a slow start as comments from New York Fed President John Williams helped cement expectations for an interest rate cut from the U.S. central bank at the end of the month. Williams said that when rates and inflation are low, policymakers cannot afford to keep their "powder dry" and wait for potential economic problems to materialise. "He's toeing the party line at the Fed, basically implying that an insurance rate cut is the right thing to do for the economy at this point in time," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
A gauge of global stocks advanced on Thursday, erasing declines on a late rally after comments from a U.S. Federal Reserve policymaker heightened expectations for a rate cut, while oil prices dropped on forecasts of rising output. In a speech read as a strong argument in favour of quick and aggressive action by the Fed to cut rates this month, New York Fed President John Williams said policymakers need to add stimulus early to deal with too-low inflation when rates are near zero. "In all the Fed speak we’ve had... it seems like the ones that are more interested in cutting are more visible," said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, Georgia.
U.S. stock indexes retreated for the second day on Wednesday as weak results from CSX Corp pressured railroad stocks and highlighted the wide-ranging impact of the long drawn out trade war between the United States and China. Shares of CSX tumbled 10.3% and were set for their biggest one-day drop in nearly 17 years, after the company posted lower-than-expected quarterly profit and cut its full-year revenue forecast. Rivals Union Pacific Corp slipped 4.7% and Kansas City Southern fell 3.9%.
U.S. stocks edged lower on Tuesday as quarterly results from banks added to concerns about lower interest rates dampening their profits, while comments from U.S. President Donald Trump on trade also dragged down Wall Street's major indexes. Johnson & Johnson shares slipped 1.6% after the diversified healthcare company warned that competition from generic and copycat drugs could impact its third-quarter results.
U.S. stocks were mixed Tuesday afternoon as investors digested a wave of signals from officials over U.S.-China trade relations and monetary policy, along with an influx of corporate earnings results and economic data.
U.S. stocks were lower on Tuesday as results from big Wall Street lenders rekindled concerns about slowing profit growth in a low interest rate environment, while comments from President Donald Trump on trade also soured the mood. JPMorgan Chase & Co and Wells Fargo & Co beat quarterly profit estimates but reported weaker net interest income, pointing to rising deposit costs. JPMorgan was 0.3% higher in volatile trade, while Wells Fargo slipped 3.1%.
Bank of America Merrill Lynch releases its monthly survey on how fund managers feel about the stock market.
Citigroup beat estimates with some help from its consumer cards business and a trading platform's IPO, but can other big banks rely on the same help in their earnings this week?
The benchmark S&P 500 index ended little changed on Monday after oscillating between positive and negative territory throughout the session after Citigroup Inc kicked off the earnings season with a mixed quarterly report. The bank reported a better-than-expected profit but also a decline in its net interest margin. The fall in net interest margin triggered a fall in shares of other banks on concerns that it would presage lower profits across the industry as interest rates have dropped.
A gauge of global stocks rose modestly on Monday after economic data from China came in as expected, but equities on Wall Street slipped on weakness in financials in the wake of Citigroup's earnings report. China's second-quarter annual GDP growth rate fell to a 27-year low of 6.2%, as expected, while June reports on industrial production, retail sales and urban investment were above forecasts.
The benchmark S&P 500 index struggled for direction in choppy trade on Monday as earnings season began in earnest with a mixed quarterly report from Citigroup Inc. Citigroup shares erased early losses in afternoon trading and were last up 0.3%. Shares of S&P 500 banks - including JPMorgan Chase & Co, Goldman Sachs Group Inc and Wells Fargo & Co, set to report results on Tuesday - fell 1.0% in the wake of Citigroup's results.
Wall Street's three main indexes edged lower in choppy trade on Monday, easing from record highs, as declines in Boeing and bank stocks after Citigroup's quarterly report were tempered by a rise in healthcare shares. Citigroup Inc reported a better-than-expected profit kicking off earnings for major U.S. lenders, but reported a decline in interest margins, with its shares marginally lower in volatile trading.
Global indices drift higher on earnings and FOMC hopes. Both earnings and FOMC hopes could suffer as the impact of trade tariffs lingers on.
While stock market record highs grab the headlines because of the widely expected Fed rate cut, don’t lose sight of why rates are coming down. Be careful what you wish for. The higher the markets go, the greater the chance for heightened volatility because domestic and global growth could still weaken, trade disputes could remain unresolved and geopolitical tensions could linger or escalate.