US: Stocks fall for third straight session

[NEW YORK] Wall Street stocks churned in and out of positive territory Tuesday before ending lower ahead of key economic data and earnings.

After another choppy session, all three major indices dropped for a third straight session. Key potential catalysts this week include Wednesday's consumer price report and earnings from JPMorgan Chase and other large banks.

Analysts fear companies will cut their earnings forecast due to rising labor and supply chain costs.

"The market is looking for direction and that direction is not going to be provided until we get the earnings announcements that are coming up," Tom Cahill, portfolio strategist at Ventura Wealth Management.

The Dow Jones Industrial Average ended down 0.3 per cent at 34,378.34.

The broad-based S&P 500 shed 0.2 per cent to 4,350.65, while the tech-rich Nasdaq Composite Index lost 0.1 per cent at 14,465.92.

Investors digested the IMF latest economic outlook, which trimmed its 2021 global growth forecast, warning that the failure to distribute vaccines worldwide is worsening inequalities.

Federal Reserve Vice Chair Richard Clarida said the US central bank was nearly ready to taper stimulus, while another official, Atlanta Federal Reserve Bank President Raphael Bostic, warned that higher inflation could persist.

Among individual companies, General Motors gained 1.4 per cent after announcing it reached an agreement with LG Electronics following a recall of the Chevrolet Bolt.

Under the settlement, LG will reimburse GM US$1.9 billion due to defects in electric auto batteries.

AFP