Wall Street ends higher; Investors wait for profit, signals Fed

  • Alphabet shares fall after report Samsung may pull out of Google Search
  • State Street slides amid a first-quarter earnings loss
  • Factory activity in New York recovered in April – New York Fed
  • Indices rose: Dow 0.3%, Standard & Poor’s 0.33%, Nasdaq 0.28%

April 17 (Reuters) – Major US stock indices posted modest gains on Monday, supported by financial and industrial stocks, as investors braced for a busy week of corporate earnings and comments from Federal Reserve officials that could provide further insight into the course of the the interest rates. .

Markets are gauging the health of corporate earnings and the economy after several banks released strong first-quarter reports last week.

Meanwhile, the New York Federal Reserve Bank said Monday that its measure of manufacturing activity in New York state rose for the first time in five months in April, helping the U.S. central bank to raise interest rates at its meeting next month. .

“The markets are in a sort of tension,” said Angelo Korkavas, investment strategist at Edward Jones. “We have a lot of corporate earnings ahead of us and the Fed interest rate decision in two weeks.”

The Dow Jones Industrial Average rose 100.71 points, or 0.3%, to 33,987.18 points. The S&P 500 (.SPX) rose 13.68 points, or 0.33%, to 4,151.32. The Nasdaq Composite Index (.IXIC) rose 34.26 points, or 0.28%, to 12,157.72.

Among the S&P 500 sectors, the financials sector (.SPSY) was up 1.1%, the industrials sector (.SPLRCI) was up 0.8%, while the underweight real estate group (.SPLRCR) was up 2.2%. Energy stocks (.SPNY) fell 1.3 percent.

Shares of Google parent company Alphabet Inc (GOOGL.O) fell 2.7% weighing on the S&P 500 and Nasdaq after a report that South Korean Samsung Electronics (005930.KS) was considering replacing Google with Microsoft owned Bing (MSFT). O) as the default search engine on its devices.

Investors await more reports this week from major US banks, including Goldman Sachs Group Inc (GS.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N), after major companies including JP Morgan Chase & Co (JPM.N) unexpectedly benefited from higher interest payments last week.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. April 14, 2023. REUTERS/Brendan McDiarmid

Other companies to report this week include Johnson & Johnson (JNJ.N), Tesla Inc (TSLA.O), and Netflix Inc (NFLX.O).

According to data from Refinitiv IBES, first quarter earnings for the S&P 500 are expected to be down 4.8% from the same period a year earlier.

“Operating income is emerging as a big driver of what the market is likely to do in the near term, and investors want to see what these companies look like here before they bet,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond. , Indiana.

Investors are also trying to gauge CEOs’ expectations in the wake of last month’s banking crisis, which some say could precipitate an economic slowdown.

US Treasury yields rose Monday, with a slew of Fed speakers later in the week. The US Federal Reserve is widely expected to raise interest rates by 25 basis points next month to a range of 5%-5.25%.

In company news, shares of State Street Corp. (STT.N) fell 9.2% after the financial services company’s quarterly earnings missed analyst estimates, hurt by a decline in fee income.

Progress outnumbered losers on the NYSE by 1.42 to 1. On the Nasdaq, a ratio of 1.61 to 1 favored the winners.

The S&P 500 hit a new 52-week high and a new low. The Nasdaq index recorded 70 new highs and 158 new lows.

About 10 billion shares changed hands on US exchanges, compared to the daily average of 10.8 billion shares over the last 20 sessions.

Additional reporting by Sruthi Shankar in Bengaluru; Edited by Shounak Dasgupta

Our Standards: Thomson Reuters Trust Principles.

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