The Business Times

US: Stocks fall as markets await bank earnings 

Published Tue, Oct 11, 2022 · 06:07 AM

WALL Street stocks were modestly lower on Monday after a quiet session to open a news-jammed week filled with major economic reports and corporate earnings.

This week’s calendar includes the latest US consumer price index data, which will give an updated reading on inflation that has prompted significant Federal Reserve interest rate hikes.

Investors will also take in new retail sales figures and earnings from Delta Air Lines, JPMorgan and others.

Monday’s calendar saw no major economic reports. The bond market was closed for Columbus Day.

The Dow Jones Industrial Average shed 0.3 per cent to 29,202.94.

The broad-based S&P 500 fell 0.8 per cent to 3,612.43, while the tech-rich Nasdaq Composite Index dropped 1.0 per cent to 10,542.10.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

Investors are cautious ahead of the earnings period, with rising costs expected to cut into corporate profits.

“We have two big catalysts coming up, inflation and earnings,” said Adam Sarhan of 50 Park Investments. “Anyone who wanted to sell already sold in the short term and now it’s just a wait and see approach for the next few days until we’ll get some clarity.”

Analysts now project the S&P 500 companies scored an earnings increase of 2.9 per cent per share, down from the 10.5 per cent that had been forecast in June, according to CFRA Research.

Among individual companies, Rivian Automotive fell 7.3 per cent as it ordered a voluntary emergency recall of most of its vehicles due to a problem with the steering system. AFP

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Capital Markets & Currencies

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here