US: Stocks fall as markets await bank earnings
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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.
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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
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