The S & P 500 closed at a lower price as investors negated strong earnings results.

The S & P 500 fell on Thursday, despite continued better-than-expected second-quarter results.

The broad index fell 0.33% to close at 4,360.03. The Nasdaq Composite fell 0.7% to 14,543.13. The Dow Jones Industrial Average, contrary to this trend, rose 53.79 points (0.15%) to close at 34,987.02.

Morgan Stanley Second quarter financial report It exceeded analysts’ expectations on Thursday morning, but its share rose by only 0.18%. Bank stock prices rose 35% this year.

For 18 S & P 500 companies that exceeded analysts’ estimates of earnings in the second quarter of this week, average earnings per share was 18% higher than expected. However, these companies fell by an average of 0.58% after reporting.

“The market has remained the same as last year, as we anticipate the earnings gains we are seeing,” said Liz Anne Sonders, chief investment strategist at Charles Schwab. “A lot of news has been priced.”

Investors seemed to like tech stocks again earlier this week, but their names fell on Thursday. Amazon fell 1.3%, but Google’s parent Alphabet’s share fell 0.9%. Apple’s share price fell 0.4% to end the session.

A slight setback in the S & P 500 occurred when the index approached record highs. The S & P 500 has already risen 16% this year in anticipation of a significant recovery in profits.

Jeffrey Gundlach, CEO of DoubleLine Capital, The market may stay at record levels As long as a stimulus program designed to help the economy recover from the pandemic is in place.

“I think the question for investors is how long this free money stimulus will last,” Gundraf said.Half-time reportOn thursday. “As long as that continues, I think the stock market will be able to stay at the level of nosebleeds and continue to crush higher.”

Federal Reserve Board Chair Jerome Powell argued Thursday that the central bank would continue to assess economic recovery before changing accommodative monetary policy.The Federal Reserve Board of Governors spoke in front of the Senate banking panel Day 2 of testimony Before the parliament.

“The challenge we are facing is how to respond to this inflation, which is greater than we expected or everyone expected. As long as it is temporary. Responding to that is not appropriate. To the extent that it grows longer, it affects inflation expectations and needs to continue to reassess the risk of longer periods, which we monitor. That’s what Powell said.

Powell in testimony to the House Commission on financial services on Wednesday Calmed investor anxiety In the face of inflation, anytime soon for a simple policy rollback of the central bank.

First unemployed bill As economists expected, the week to July 10 totaled 360,000, a new low in the pandemic era.

-CNBC Robert Ham Contribution report.

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The S & P 500 closed at a lower price as investors negated strong earnings results.

Source link The S & P 500 closed at a lower price as investors negated strong earnings results.

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