US: Stocks mixed as traders mull earnings, await jobs data
WALL Street stocks ended mostly lower on Tuesday (Aug 1) amid a slew of corporate earnings results, while manufacturing sector data supported hopes that the central bank could skip another rate hike in September.
US manufacturing activity contracted for a ninth straight month in July, according to the Institute for Supply Management, as the impact of higher interest rates rippled through the world’s largest economy.
While the Federal Reserve has embarked on a path of aggressive rate increases to cool demand and lower inflation, there is rising anticipation that its cycle of hikes may soon end.
On Tuesday, the broad-based S&P 500 shed 0.3 per cent to 4,576.73 while the Nasdaq Composite Index fell 0.4 per cent to 14,283.91.
The Dow Jones Industrial Average gained 0.2 per cent, ending at 35,630.68.
The mixed showing came as drugmaker Pfizer posted a steep drop in profits on lower revenues relating to Covid – while trimming its full-year sales forecast – and ride-hailing firm Uber missed estimates.
Pfizer shares ended 1.2 per cent lower while those of Uber slumped 5.7 per cent.
“I don’t want to read too much into it because the declines are relatively small,” said Steve Sosnick of Interactive Brokers, referring to overall market movements.
He added that many traders are incentivised to wait until later in the week, when earnings from Apple and Amazon are due, along with employment data.
The market, he said, is in a “wait-and-see mode”.
Among other companies, shares in pharmaceutical giant Merck slipped 1.3 per cent and construction equipment maker Caterpillar gained 8.9 per cent after its results beat expectations. AFP
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