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Wall Street pauses and stocks mix after a major rally | National News

By STANCHOE-AP Business Writer

New York (AP) — Wall Street has been suspended on Wednesday, the day after it recovered to its best day in a few weeks, following various profit reports from major US companies.

The S & P 500 fluctuated between a slight rise and fall, rising 2.8% and falling 0.3% in early trading the next day. The Dow Jones Industrial Average fell 142 points (0.4%) at 31,684 after 10 am EST, and the Nasdaq Composite rose 0.1%.

The profit reporting season for large companies is skyrocketing, and more types of industries are providing details on how high inflation and the potential for a recession are affecting customers. Much depends on their ability to continue to provide healthy benefits.

Proving that profits will remain strong, with stock prices falling about 20% from highs this year due to concerns about rising interest rates, will be a big boost to the market. On the other hand, warnings about future weaknesses could start another leg down.

As usual, companies have far exceeded their profit expectations so far this season.

The company behind the eponymous exchange, Nasdaq, surged 5.1% after Wall Street yielded stronger profits and profits than expected. Dallas-based financial services company Comerica increased 0.9% after reporting stronger than expected results.

Netflix It increased by 1.2% after saying that it lost less subscribers than expected during the spring. However, it is the worst inventory of the S & P 500 of the year, a decrease of about two-thirds.

The loser was Baker Hughes, who fell 11.6% after reporting weaker results than analysts expected in the spring. Northern Trust fell 5.4% after lower-than-expected profits.

In Europe, inventories were declining amid concerns about whether Russia would limit the supply of natural gas to the region as maintenance of major pipelines is scheduled to end on Thursday. Germany’s DAX fell 0.7% and French stocks fell 0.6%.

The continent is also trying to beat inflation, so the European Central Bank is preparing to raise interest rates for the first time in 11 years on Thursday.

The Federal Reserve has already raised interest rates three times this year by increasing margins each time. When it meets next week, investors say the only question is whether it will raise its key rate by another 0.75 percentage points or choose a full percentage point mega hike.

Such rising interest rates make borrowing more expensive and slow the economy. We hope that the Federal Reserve and other central banks will be able to cleverly find the midpoint that the economy is slowing enough to curb inflation, but not enough to cause a recession. ..

Part of the economy, especially the housing industry, is already slowing down due to rate hikes.Wednesday morning report showed that Sales of previously occupied homes have weakened Last month was more than the economist expected.

In the bond market, yields on two-year government bonds, which tend to keep up with expectations of the Fed’s actions, fell from 3.24% late Tuesday to 3.19%. The 10-year yield dropped from 3.01% to 2.97%.

Contributed by AP business writer Elaine Kurtenbach.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Wall Street pauses and stocks mix after a major rally | National News

Source link Wall Street pauses and stocks mix after a major rally | National News

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