Market

S&P 500 dips even as earnings results continue to top expectations – Stocks News Feed

The S&P 500 dipped on Thursday even as second-quarter earnings results continued to beat expectations.

The broad index lost around 0.7%. The Dow Jones Industrial Average shed about 54 points, or 0.16%. The Nasdaq Composite fell roughly 1.2%.

Morgan Stanley’s second-quarter earnings report topped analysts’ expectations Thursday morning, yet its shares edged lower. The bank’s stock was up 35% this year going into the results.




“The market did as well as it did in the past year because it was in anticipation of the improvement in earnings that we’re seeing right now,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said. “A lot of news has been priced in.”

Technology stocks drifted lower, with shares of Apple down more than 1% after closing at a record the day prior. Investors appeared to favor tech stocks again earlier this week, but on Thursday names like Amazon, Facebook and Google-parent Alphabet each dipped about 1%.

The slight pullback in the S&P 500 came as the index hovered near its record high. The S&P 500 is already up 16% this year in anticipation of a big profit comeback.

Jeffrey Gundlach, DoubleLine Capital chief executive, said he believes the market could stay at record levels as long as stimulus programs designed to help the economy recover from the pandemic remain in place.

“I think the whole question for investors is…how long this free money stimulus is going to go on,” Gundlach told CNBC’s “Halftime Report” on Thursday. “As long as it goes on, I think the stock market can stay at nosebleed levels as it has been and continue to grind higher.”

Federal Reserve Chair Jerome Powell on Thursday maintained the central bank will continue to evaluate the economic recovery before changing its accommodating monetary policies. The Fed chair spoke before the Senate banking panel in a second day of testimony before Congress.

“The challenge we’re confronting is how to react to this inflation, which is larger than we had expected or that anybody had expected. To the extent that it is temporary, then it wouldn’t be appropriate to react to that. But to the extent that it gets longer and longer, we’ll have to continue to reevaluate the risks that would affect inflation expectations and would be of longer duration and that’s what we’re monitoring,” Powell said.

Powell in a testimony to the House Committee on Financial Services on Wednesday quelled investors’ fears about a rollback of the central bank’s easy policies anytime soon, even in the face of inflation.

Initial jobless claims for the week ending July 10 totaled 360,000, a new pandemic-era low, as expected by economists.

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV
Sign up to start a free trial today

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button