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US-STOCKS-MARKET
US stocks retreat from records on mixed earnings, data
NEW YORK, July 17, 2019 (BSS/AFP) – Wall Street stocks finished lower
Tuesday, retreating from records following mixed earnings and economic data
and amid talk the market is due for a pullback.
Earnings from large banks topped analyst expectations, but highlighted the
risk that the expected Federal Reserve interest rate cut could pinch profits.
Some analysts pointed to comments from President Donald Trump indicating
the US and China are still far from a trade deal, while others focused on the
effects of gravity following a string of recent records in share prices.
“The S&P 500 has reached into a level of overbought territory that
suggests a period of consolidation and increased volatility may lie directly
ahead,” Canaccord Genuity equity strategist Tony Dwyer warned.
The Dow Jones Industrial Average finished down 0.1 percent at 27,335.63.
The broad-based S&P 500 shed 0.3 percent to end the session at 3,004.04,
while the tech-rich Nasdaq Composite Index fell 0.4 percent to close at
8,222.80.
US retail sales for June easily topped estimates, suggesting a confident
consumer. But quarterly manufacturing data declined for the second straight
time, meeting the technical definition of a “recession” for that sector.
Among banks, JPMorgan Chase shook off early weakness and finished 1.1
percent higher after reporting record profits of $9.7 billion in the second
quarter. The bank’s consumer businesses were strong, but it signaled that it
expects lower net interest income due to expected Federal Reserve interest
rate cuts.
That concern also weighed on Wells Fargo, which fell 3.1 percent, while
Goldman Sachs jumped 1.9 percent after reporting better-than-expected
profits.
Johnson & Johnson slid 1.6 percent after lifting its full-year revenue
forecast, but not its outlook for profits.
Tesla dipped 0.4 percent as it cut the price on some models of the Model
3, reviving concerns about vehicle demand. The company is tweaking prices “in
order to continue to improve affordability for customers,” a spokesman said.
BSS/AFP/HR/1025