US: Stocks mostly flat on solid retail sales, bank earnings
WALL Street stocks ended the day mostly unchanged on Tuesday as traders digested stronger than expected retail sales data and company earnings including those of major banks.
The Dow Jones Industrial Average was flat at 33,997.65.
The broad-based S&P 500 was flat also at 4,373.20, while the tech-heavy Nasdaq Composite rose 0.3 per cent to 13,533.75.
US retail sales increased more than expected last month, up 0.7 per cent from August according to government data.
This adds to concerns that a further interest rate hike could be on the cards if the economy continues to run hot.
The yield on the 10-year US Treasury note, closely watched as a benchmark on interest rates, climbed above 4.8 per cent.
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While Tuesday’s economic data was “very strong” and lined up with expectations that inflation could come down without triggering a recession, the figures also add to pressures, said Angelo Kourkafas of Edward Jones.
“The market took it as a neutral,” Kourkafas added.
Goldman Sachs and Bank of America’s earnings beat earnings expectations, although Goldman reported a profit drop of more than 30 per cent in the third quarter.
Bank of America numbers “appear to point to a slowing US economy, but certainly not one that is showing any significant signs of financial stress,” said CMC Markets chief market analyst Michael Hewson in a note.
Goldman Sachs shares closed 1.6 per cent down while Bank of America rose 2.3 per cent.
Shares of Nvidia and other semiconductor companies also plunged after the United States said it was tightening curbs on exports of state-of-the-art AI chips to China.
Nvidia shares ended the day 4.7 per cent lower.
Among other companies reporting earnings on Tuesday, Lockheed Martin shares rose 0.2 per cent while Johnson & Johnson slumped 0.9 per cent. AFP
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