Financials drag on Wall Street as bank results underwhelm
By Stephen Culp NEW YORK (Reuters) - Wall Street edged lower on Monday, weighed down by financials as lackluster bank earnings put a damper on investor enthusiasm. But while all three major U.S
By Stephen Culp
NEW YORK (Reuters) - Wall Street edged lower on Monday, weighed down by financials as lackluster bank earnings put a damper on investor enthusiasm.
But while all three major U.S. stock indexes were down, the S&P 500 remained within a percent of its all-time high.
Following a first-quarter rally that marked the best quarterly performance for U.S. stocks in nearly a decade, stocks have been in a holding pattern in April ahead of first quarter reporting season.
Goldman Sachs dipped 3.3% after the investment bank's first quarter revenue came in below analyst expectations.
Citigroup Inc posted higher-than-expected earnings as cost-cutting offset falling revenues. Its shares were essentially flat.
"Investors are in total earnings mode, wondering if the better-than-expected earnings reports on Friday will be carried over into the new week and the entire reporting period," said Sam Stovall, chief investment strategist of CFRA Research in New York. "But because of the less-than-ebullient earnings report from Goldman, investors are not convinced that it will be a positive quarter."
With first quarter reporting season shifting into high gear, analysts now see S&P 500 companies posting a 2.1% year-on-year decline in profits. While an improvement over recent estimates, it would still mark the first annual decline in earnings since 2016.
However, of the 33 companies in the S&P 500 that have reported thus far, 81.8% have beaten Street estimates, better than the 65% average beat rate since 1994.
Bank of America Co, Morgan Stanley, Netflix Inc, Johnson & Johnson, Textron Inc, Honeywell International Inc Schlumberger NV and American Express Co are among the closely-watched earnings expected this holiday-shortened week.
Aside from earnings, "we still have to be watchful for global geopolitical events such as the U.S.-China trade discussion," Stovall warned.
As trade talks progress, U.S. negotiators have softened their demands that China curb industrial subsidies as a condition for a deal, marking a retreat from a core U.S. objective.
"It's a net positive," Stovall added. "The President wants to get some sort of deal signed so he can move on."
The Dow Jones Industrial Average fell 26.86 points, or 0.1%, to 26,385.44, the S&P 500 lost 2.72 points, or 0.09%, to 2,904.69 and the Nasdaq Composite dropped 18.53 points, or 0.23%, to 7,965.63.
Of the 11 major sectors in the S&P 500, six were in the red.
Financials snapped their three-day winning streak, falling 0.6%.
Waste Management Inc rose 2.6% following its announcement that it would buy smaller rival Advanced Disposal Services Inc for about $3 billion.
Boeing Co slid 1.1% after U.S. President Donald Trump tweeted that the planemaker should fix and "rebrand" its troubled 737 MAX jet.
Lyft Inc extended its slide, falling 5.8%. The ride-hailing platform is now trading about 22% below its $72 offer price since its March 29 debut.
Declining issues outnumbered advancing ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favoured decliners.
The S&P 500 posted 54 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 70 new highs and 36 new lows.
(Reporting by Stephen Culp; Editing by Chizu Nomiyama)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
OTTAWA (Reuters) - Canadian Prime Minister Justin Trudeau on Friday said he will continue to stand up against China's "coercive diplomacy" and its human rights abuses in Hong Kong and Xinjiang after being rebuked by Beijing for similar comments earlier this week. "We will stand up loudly and clearly for human rights all around the world, whether it is talking about the situation faced by the Uighurs, whether it is talking about the very concerning situation in Hong Kong, whether it's calling out China for its coercive diplomacy," Trudeau said in a news conference. (Reporting by Steve Scherer and Julie Gordon, Editing by Franklin Paul)
By Caroline Pailliez PARIS (Reuters) - Solene Tissot, a 19-year-old student in Paris, will obey the curfew imposed to fight COVID-19, but she has one request for her country's leaders: don't blame young people for the second wave of the virus. "There's been this kind of assigning guilt to young people," she said on Friday, hours before the new curfew was to come into force in Paris and major French cities. "I reject that." After a lull over the summer, the rates of transmission of coronavirus are going up in many parts of Europe and officials have identified social interactions between young people as a source of the resurgence.
By Adrian Portugal and Eloisa Lopez MANILA (Reuters) - Jailed Philippine activist Reina Mae Nasino wanted to hold her three-month-old daughter for the last time before she was laid to rest on Friday but she could not. Heavily armed prison officials guarding her refused to uncuff her despite pleas from her family and human rights supporters, who have decried what they described as inhumane treatment of Nasino and other mothers in Philippine jails.