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Financial Markets 01/16 15:39
NEW YORK (AP) -- Stocks edged a bit lower on Wall Street Friday as the first
week of corporate earnings season ended with markets trading near record levels.
The wobbly day for stocks closed out a week of similar movements for major
indexes amid profit reports from banks and updates on inflation.
The S&P 500 fell 4.46 points, or 0.1%, to 6,940.01. It is sitting just below
its record, which was set on Monday. The Dow Jones Industrial Average fell
83.11 points, or 0.2%, to 49,359.33. The Nasdaq composite fell 14.63 points, or
0.1%, to 23,515.39. Each index notched weekly losses.
Smaller company stocks fared better. The Russell 2000 eked out a 0.1%, while
also notching a 2% gain for the week.
Technology stocks were the strongest forces behind the market's moves
throughout most of the day. Several big technology stocks made strong gains and
helped offset losses elsewhere.
Broadcom rose 2.5% and Micron Technology rose 7.8%. The semiconductor
companies are among several Big Tech companies with outsized valuations that
often push the market higher or lower.
A handful of regional U.S. banks reported their earnings following mixed
reports from their larger peers. Pittsburgh's PNC jumped 3.8% after it beat
Wall Street's fourth-quarter targets, but Regions Financial fell 2.6% after
reporting results that missed forecasts.
Outside of the banking sector, transport company J.B. Hunt Transport
Services fell 1% after reporting mixed quarterly financial results.
The latest round of earnings updates from companies could help give Wall
Street a better sense of how consumers are spending their money and how
businesses are operating amid economic concerns brought on by inflation and
tariffs. Results from the technology sector are being scrutinized by investors
trying to figure out whether the high stock prices fueled by the craze around
artificial intelligence are justified.
"Despite the strong start to 2026, we would not be surprised if markets
experience volatility in the coming weeks as fourth quarter earnings progress
and the threat of escalating geopolitical tensions remains," wrote Doug Beath,
global equity strategist at Wells Fargo Investment Institute, in a note to
investors.
Wall Street will have a broader mix of earnings to review next week, coming
from airlines, industrial companies, and technology companies. United Airlines,
3M, and Intel are all scheduled to release their quarterly earnings results
next week.
Crude oil prices rose after dropping sharply on Thursday. The price of U.S.
crude oil rose 0.4% to $59.44 and the price of Brent crude, the international
standard, rose 0.6% to $64.13. Oil prices have been volatile amid widespread
protests in Iran against that country's leadership and President Donald Trump's
warnings that the U.S. "will come to their rescue."
Gold prices, which have also been volatile this week, fell. Prices for the
precious metal, often viewed as a safe haven amid economic and geopolitical
uncertainty, fell 0.6%, but are still up more than 5% so far in January.
Treasury yields moved higher in the bond market. The yield on the 10-year
Treasury rose to 4.23% from 4.17% late Thursday. The two-year Treasury yield,
which more closely tracks expectations for what the Federal Reserve will do,
rose to 3.60% from 3.57% late Thursday.
The Fed's next policy meeting on interest rates is in two weeks, and Wall
Street is betting that it will maintain its current benchmark interest rate.
The central bank is trying to balance a slowing jobs market with stubbornly
high inflation. Updates on inflation this week showed that prices remain above
the Fed's 2% goal.
The U.S. central bank will get one more update on inflation next week when
the government releases the personal consumption expenditures price index, or
PCE. It is the Fed's preferred measure for inflation.
European markets fell, and markets in Asia were mixed. Taiwan's benchmark
index rose 1.9% after its government signed a trade deal with the U.S. China,
which claims the self-governed island as its own territory, protested the
agreement.
The deal with Taiwan comes amid an ongoing trade war between the U.S. and
much of the world. Uncertainty over tariffs have raised concerns about
inflation and economic damage because of higher costs for businesses and
consumers.
Canada is the latest to shift its partnerships because of the uncertainty.
It has agreed to cut its 100% tariff on Chinese electric cars in return for
lower tariffs on Canadian farm products as part of a break with the U.S. Tesla
fell 0.2% and Rivian fell 2.3%.
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