Wall Street slips as caution rises over earnings; financials down

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NEW YORK (Businesshala) – US stocks fell mostly in afternoon trading on Monday as investors remained cautious ahead of third-quarter earnings season.

FILE PHOTO: A street sign is seen for Wall Street outside the New York Stock Exchange (NYSE) in New York City, New York, US July 19, 2021. Businesshala/Andrew Kelly

The index reversed earlier gains, the Dow and S&P 500 lower and the Nasdaq essentially flat.

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Supply chain problems and higher costs for energy and other things have raised concerns about earnings, JPMorgan Chase & Co.’s results began on Wednesday.

Shares of JPMorgan were among the biggest drags on the S&P 500, down 1.9%, and the S&P Financial Index was down 0.7%.

“I was surprised to see the market this morning because earnings season is right ahead of us, and the market is a little cautious this earnings season,” said Tim Grisky, chief investment strategist at Inverness Counsel in New York, New York. .

“Supply chain issues may have affected earnings more for many companies and some industries than others.”

The Dow Jones Industrial Average fell 131.61 points, or 0.38%, to 34,614.64, the S&P 500 fell 12.64 points, or 0.29%, to 4,378.7, and the Nasdaq Composite fell 8.08 points, or 0.06%, to 14,571.46.

Analysts expect S&P 500 companies’ profits to rise 29.6% year-over-year in the third quarter, down from 96.3% growth in the second quarter, according to IBES data from Refinitiv.

Energy was also down after hitting the highest level since January 2020. Higher oil prices have raised concerns about rising costs for businesses and consumers.

Market participants said traders may have gone out for the US Columbus Day holiday. US bond markets were closed on Monday for a holiday.

Among individual stocks, Southwest Airlines Co slipped 3.2% on a report that it canceled at least 30% of its scheduled flights on Sunday.

Advancing issues declining the 1.08-to-1 ratio on the NYSE; On the Nasdaq, a 1.08-to-1 ratio favored the decline.

The S&P 500 posted 40 new 52-week highs and 7 new lows; The Nasdaq Composite posted 83 new highs and 109 new lows.

Additional reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Arun Koyur, Aditya Soni and David Gregorio

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