Wednesday, February 8, 2023
HomeBusinessWall Street edges lower as earnings kick into high gear By Reuters

Wall Street edges lower as earnings kick into high gear By Reuters


©Reuters. Tradesmen work at the post where Carvana Co. trades on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

By Shreyashi Sanyal and Johann M. Cherian

(Reuters) – Wall Street slumped on Tuesday after industry peers 3M, Johnson & Johnson (NYSE:) and GE warned of a challenging year ahead, while a technical glitch on the New York Stock Exchange shortly after opening hampered trading in some stocks briefly stopped clock.

More than 80 stocks listed on the NYSE were affected by the outage, including stocks of companies Nike Inc (NYSE:) and Walmart (NYSE:) Inc are seeing wide swings in opening prices.

The issue confused traders on a high-income day that focused on the market reaction to the quarterly results of some of the largest companies.

Industrial conglomerate 3M Co fell 5.7% as it predicted a dismal first quarter.

Verizon communications Inc (NYSE:) fell 0.4% after forecast annual earnings fell below estimates, while Johnson & Johnson fell 1.3% as it warned that an increase in COVID-19 cases in China could affect the first half of sales in 2023.

General Electric (NYSE:) Co fell 0.2% on a disappointing earnings forecast for the year, despite higher quarterly earnings expectations.

“The problem today is mostly revenue,” said Fall Ainina, director of research at James Investments. “Now many are predicting an earnings recession, which is consecutive quarters of negative earnings.”

Wall Street’s major indices started the week strong amid renewed interest in growth stocks after a thump last year.

See also  Stock Markets Today LIVE UPDATES: DCX Systems Day 1 subscription at 233% on BSE; 1.23 times on NSE - Zee Business

After posting its biggest gain in more than two months on Monday, Advanced Micro Devices (NASDAQ:) Inc fell 3.2% as Bernstein downgraded it from “outperform” to “market-perform.”

It fell 0.7% to slide off a month high.

Big Tech earnings may also determine whether the newfound enthusiasm for growth stocks will last.

“In the near term, the answer appears to be tech earnings… in the longer term, if we see a Fed pivot this year, we expect strong, positive tech buying momentum,” JPMorgan analysts (NYSE:) . wrote in a customer note.

Microsoft Corp (NASDAQ:) will report quarterly earnings after the bell.

Analysts are now seeing corporate earnings fall 2.9% year over year in the fourth quarter, according to data from Refinitiv.

The fourth quarter earnings season will be closely watched as companies are expected to feel the full impact of the Federal Reserve’s rate hike campaign. The central bank is expected to raise interest rates by another quarter of a percentage point next week.

At 12:31 a.m. ET, the S&P 500 was up 0.20 points or 0.00% to 33,629.76, the S&P 500 was down 5.95 points, or 0.15%, to 4,013.86 and was 14.26 points or down 0.13% to 11,350.15.

Travelers Companies (NYSE:) added 2.6% after the insurer reported better-than-expected fourth-quarter earnings.

Other big growth stocks also fell, with Alphabet (NASDAQ:) Inc falling 1.1%. The U.S. Justice Department will be joined by about eight states in an antitrust suit against Alphabet’s Google that is expected to be filed this week.

On the NYSE, rising issues outnumbered fallers on the NYSE by a ratio of 1.13 to 1. Falling issues outnumbered progress at a ratio of 1.08 to 1 on the Nasdaq.

See also  Sikko Industries Share delivered more than 100 percent return company now giving bonus Share - Business News India

The S&P index recorded 27 new highs in 52 weeks and 10 new lows, while the Nasdaq recorded 60 new highs and 18 new lows.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments