- Bank of America raises S&P 500
- Twitter wins after taking “poison pill”
- Didi will meet on US plans to remove from listing, stocks have collapsed
- Down indices: Dow 0.11%, S&P 0.02%, Nasdaq 0.14%
April 18 (Reuters) – US stocks closed lower on Monday after a session in which all three benchmarks slipped between positive and negative territory as investors contrasted Bank of America’s positive gains with rising bond yields ahead of new earnings signals this week.
Market participants are preparing for a wave of profits that will help them assess the impact of the war in Ukraine and the jump in inflation on the company’s financial performance. Netflix (NFLX.O), Tesla (TSLA.O), Johnson & Johnson (JNJ.N) and International Business Machines (IBM.N) will report this week.
Trading volumes were weak after the Easter break: 10.35 billion shares changed hands, compared to an average of 11.79 billion for the entire session over the past 20 trading days.
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As European markets also remained closed on Monday, this helpless trade contributed to the reversal of the session.
“The market is looking for a direction. Do we get it from the profits – maybe. But the overarching factors continue to be what China looks like with its COVID-19 policy and what the Fed looks like in terms of interest rates and inflation, ”said Jack Janasevich, portfolio manager and lead portfolio strategist at Natixis Investment Managers.
“It will be some time before anyone gives us a clear direction. Against this background, I’m not shocked if we just keep trading in the range. “
Bank of America ended the season of profits for the big Wall Street banks, reporting strong growth in its consumer lending business, although the investment banking department suffered a blow from the delay in concluding deals. Read more
Its share price rose 3.4%, while the broader S&P 500 index (.SPXBK) also rose 1.7%.
Apple Inc (AAPL.O) fell 0.1%, with the reference yield on 10-year bonds rising to 2.86% after reaching 2.884% earlier on Monday, the highest since December 2018.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, USA, March 30, 2022. REUTERS / Brendan McDermid / File Photo
Shares of market-leading technology and emerging companies are under pressure as expectations of a series of interest rate hikes threaten to undermine their future profits.
However, Tesla rose 2% as it prepares to reopen its Shanghai plant after nearly three weeks of shutting down COVID. Read more
Five of S&P’s 11 main sectors were higher, led by the energy index (.SPNY), which rose 1.5%. Crude oil prices rose and Brent exceeded $ 114 a barrel at one point due to disruptions in Libya, deepening fears of limited global supplies.
Among the best performers was Marathon Petroleum Corp (MPC.N), which rose 3.3% to reach a second life peak in three sessions. Valero Energy Corp. (VLO.N) and Phillips 66 (PSX.N) advanced 5.2%.
The Dow Jones Industrial Average (.DJI) fell 39.54 points, or 0.11%, to 34,411.69, the S&P 500 (.SPX) lost 0.9 points, or 0.02%, to 4,391.69. and the Nasdaq Composite (.18IC.7) fell 2 points 0.14% to 13,332.36.
Charles Schwab Corp (SCHW.N) fell 9.4%, its biggest one-day decline since March 2020, after financial services company missed quarterly earnings forecasts.
Twitter (TWTR.N) up 7.5% as microblogging site adopted a “poison pill” on Friday to prevent Tesla CEO Elon Musk from raising his stake to more than 15% for a year .
Didi Global Inc (DIDI.N) fell 18.3% after the Chinese transport company announced it would hold an extraordinary general meeting on May 23 to vote on plans to remove it from the list in the United States. Read more
The S&P 500 publishes 27 new highs in 52 weeks and 24 new lows; The Nasdaq Composite recorded 59 new highs and 397 new lows.
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Report by Bansari Mayur Kamdar, Sruthi Shankar and Amal S in Bengaluru and David French in New York; Edited by Arun Coyur, Anil D’Silva and Grant McCool
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