Wall Street closes lower on jitters ahead of earnings, Fed minutes

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  • American Airlines up on lower-than-expected Q3 loss forecast
  • Tesla records record China-made vehicle sales growth in September
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NEW YORK, Oct 12 (Businesshala) – US stocks tumbled on Tuesday, prompting investors to panic in third-quarter earnings, while a jump in Tesla shares helped support the market.

Cautioning investors, the Federal Reserve is expected to release the minutes of its final policy meeting on Wednesday, which will signal to market participants when the US central bank may begin its massive bond-buying program.

Earnings began unofficially this week with results from JPMorgan Chase & Co (JPM.N) and other banks on Wednesday. JPMorgan shares were down on the day, while the S&P 500 Bank Index (.SPXBK) was also down.

Analysts expect strong US profit growth for the third quarter, but investors are concerned about how supply chain problems and higher prices will affect Corporate America as businesses emerge from the coronavirus pandemic. Several companies have warned of impending issues in the reporting period.

“For the most part, the view of institutional portfolio managers is – let’s look at what earnings look like and how much downside is being seen from shortages, higher rates and supply chain constraints,” said Michael James, managing director of Equity Trading. at Wedbush Securities in Los Angeles.

“A lot of those factors are currently reflected in where equity prices are right now.”

According to preliminary data, the S&P 500 (.SPX) was down 10.79 points, or 0.25%, at 4,350.40, while the Nasdaq Composite (.IXIC) was down 20.27 points, or 0.14%, at 14,465.93. The Dow Jones Industrial Average (.DJI) fell 121.37 points, or 0.35%, to 34,374.69.

Tesla (TSLA.O) advanced data after the electric vehicle maker sold 56,006 China-made vehicles in September, the most since it began production in Shanghai nearly two years ago. The company’s shares gave the biggest boost to the S&P 500 and Nasdaq.

Shares of American Airlines Group (AAL.O) rose after the company forecast a lower-than-expected adjusted loss for the third quarter and indicated better bookings for the rest of the year.

MGM Resorts (MGM.N) soared in the wake of Credit Suisse downgrading the companies’ stock from “neutral” to “outperform”.

Investors also weighed in on comments from Fed Vice Chairman Richard Clarida, who said the central bank had met its employment target to reduce its bond buying program.

On the economic front, US data shows the labor market remains tight, with record numbers of Americans quitting their jobs and job vacancies surpassing 10 million, raising fears of inflation as employers cut workers. Increase wages to attract and retain.

Wednesday’s Consumer Price Index report will attract the attention of investors seeking clues about inflation.

Additional reporting by Devik Jain, Shreyashi Sanyal in Bengaluru and Federica Urso in Gdansk; Editing by Saumyadeb Chakrabarty, Arun Koyyur and David Gregorio

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