- American Airlines up on lower-than-expected Q3 loss forecast
- Tesla records record China-made vehicle sales growth in September
- Index: Dow down 0.1%, S&P 500 down 0.03%, Nasdaq up 0.1%
NEW YORK, Oct 12 (Businesshala) – US stocks were little changed in afternoon trading on Tuesday as investors remained cautious in third-quarter earnings, while a jump in Tesla shares supported the market.
Adding to investor uncertainty, the Federal Reserve will release minutes from its last policy meeting on Wednesday, and investors are looking for further clues as to when the central bank may begin to ease its massive bond-buying program.
Earnings began unofficially on Wednesday with results from some of the biggest banks, including JPMorgan Chase & Co (JPM.N). Its shares were up 0.6%, while the S&P 500 Bank Index (.SPXBK) was down 0.4%.
Analysts expect strong US profit growth for the third quarter, but investors are concerned about supply chain problems and the impact of higher prices on Corporate America as businesses recover from the coronavirus pandemic. Several companies have warned of impending issues in the reporting period.
“The market is bearish right now, and I suspect investors are looking forward to the earnings parade, which begins tomorrow,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“There will be some reduction in income, but… nothing is harmful,” he said. But “the market remains cautious, and if earnings disappoint, we may sell more.”
The Communication Services (.SPLRCL) and Technology (.SPLRCT) sectors led the day’s decline. At the same time, Tesla (TSLA.O) rose 2.4% after data showed the electric vehicle maker sold 56,006 China-made vehicles in September, the most since starting production in Shanghai nearly two years ago .
The Dow Jones Industrial Average (.DJI) fell 31.28 points, or 0.09%, to 34,464.78, the S&P 500 (.SPX) fell 1.22 points, or 0.03%, to 4,359.97, and the Nasdaq Composite (.IXIC) added 8.30 points, or 0.06%, to 14,494.50.
Shares of American Airlines Group (AAL.O) also rose, which on Tuesday forecast a lower-than-expected adjusted loss for the third quarter and indicated better bookings for the rest of the year.
Fed Vice President Richard Clarida said the central bank has met its employment target of moving forward with reducing its bond purchase program.
Investors will also keep an eye on the Consumer Price Index data for Wednesday’s September.
Advancing issues declining the 1.63-to-1 ratio on the NYSE; On the Nasdaq, a 1.46-to-1 ratio favored advances.
The S&P 500 posted 10 new 52-week highs and 10 new lows; The Nasdaq Composite posted 39 new highs and 84 new lows.