alexa certify
0

Stock market update: Stocks fall as investors take a break

On Tuesday, Stocks fell after investors took a break after another record-setting session on Wall Street. 

The S&P 500 ended an 8-session with a winning streak. On the previous day, the index closed above 4,800 for the first time. The indexes were still within the look of recent record highs even though the Dow and Nasdaq also gave back gains. Tesla Shares closed lower by 13% in their biggest drop since the end of 2020, with the stock having another day of marked selling after Tesla’s CEO mentioned that he might sell some of his stakes.

In the previous week, equity investors were optimistic about economic reports and solid quarterly corporate earnings. These reports came beside recent positive data about a new pill against COVID-19 from Pfizer and the passage of over $1 trillion infrastructure bill in Congress. According to FactSet, the forecasted earnings growth rate for the index in total reaches nearly 41%. The forecast came after about 88% of S&P 500 companies posted quarterly results. Over the past several weeks, this growth rate has continued to increase as more companies beat expectations.

Overview

Bank of America Merrill Lynch senior investment strategist, Marci McGregor, told Yahoo Finance Live that it’s all about corporate profits. In his opinion, peak earnings are yet to come, while many of his peers seem concerned that peak earnings growth is behind them. He added that solid consumer demand is apparent with a strong U.S. economy that would positively perform for corporate profits.

Roblox shares rose after reporting third-quarter bookings that surpassed Wall Street’s estimates. However, PayPal shares decreased. AMC Entertainment also dropped despite exceeding quarterly sales estimates.

In analyst calls and quarterly reports, many companies have indicated limitations about getting raw materials, managing increasing input costs, and filling job openings. According to Bank of America, problems of supply chains on quarterly earnings calls have risen by 360%, marking the general reality of these pressures. These supply-related problems have also played an important role in increasing inflationary trends. 

According to the Bureau of Labor Statistics report, producer prices rose by 8.7% over the last year. Invesco chief global market strategist, Kristina Hooper, told Yahoo Finance Live that she expected inflation to peak by August in 2022. She added that it should remain high, but it might move lower again. Hooper added that the pandemic could play an essential role in these events.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.



You might also like

Leave a Reply

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending

Financebrokerage