NEW YORK: 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 fell 112.96 points, or 0.34%, to 33,517.65, the S&P 500 lost 2.99 points, or 0.08%, to 3,892.09 and the Nasdaq Composite added 66.36 points, or 0.63%, 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.
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% 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%, Pfizer 5% and Johnson & Johnson 2.6%.
Macy’s fell 7.6% 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”.
Shares of Broadcom Inc fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, reported that Apple Inc plans to drop a Broadcom chip in 2025 and use an in-house design instead.
Tesla Inc shares rose 5.9% after the electric-vehicle maker indicated longer waiting times for some versions of the Model Y in China, signalling the recent price cuts could be stoking demand. – AFP, Reuters