US: Stocks end mixed as markets ponder ‘soft landing’ odds
WALL Street stocks ended mixed on Monday (Jan 9) despite a strong start, with markets looking ahead to critical inflation data and bank earnings later in the week.
Major indices looked poised for another solid run after Friday’s rally, which came on the back of jobs data that raised hopes for a “soft landing” in the world’s biggest economy.
But markets lost their momentum in the early afternoon, leaving two of the three major indices in the red.
The Dow Jones Industrial Average finished down 0.3 per cent at 33,517.65.
The broad-based S&P 500 slipped 0.1 per cent to 3,892.09, while the tech-rich Nasdaq Composite Index advanced 0.6 per cent to 10,635.65.
This week’s calendar includes the December consumer price index report that will be scrutinised for its implications on US monetary policy, as well as results from JPMorgan Chase and other banks.
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The bank results kick off the fourth-quarter earnings season for which markets have modest expectations.
Analysts expect companies in the S&P 500 to see a drop of 4.1 per cent in profits for the quarter, reflecting the hit to profit margins from elevated costs, according to financial information service FactSet.
Pharmaceutical companies stood out Monday for outsized losses. Merck dropped 3.9 per cent, Pfizer 5.0 per cent and Johnson & Johnson 2.6 per cent.
Lululemon Athletica tumbled 9.3 per cent after saying it now expects lower profit margins in the fourth quarter after earlier projecting an increase.
Macy’s fell 7.6 per cent as it said net sales in the fourth quarter would be at the low end of its earlier predicted range.
The retailer expects consumers “will continue to be pressured in 2023, particularly in the first half”. AFP
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