USA stocks fall amid earnings

  • USA stocks fall amid earnings

USA stocks fall amid earnings

Technology, health care and communication stocks accounted for most of the selling, outweighing slight gains in banks and elsewhere in the market. Trading in stock markets overseas was subdued as coronavirus counts climb around the world, raising the risk of more government restrictions on businesses. Treasury prices and yields move in opposite directions.

Wall Street's benchmark S&P 500 index closed down 0.7% on Wednesday after Treasury Secretary Steven Mnuchin said he and congressional leaders were "far apart" on new aid for the struggling USA economy. "[US Treasury Secretary] Steve Mnuchin's admission that a package is unlikely before the election was a blow to the markets, one they're struggling to pick themselves up from", said OANDA's Craig Erlam.

"At this point getting something done before the election and executing on that would be hard, just given where we are and the level of detail, but we're going to try to continue to work through these issues", Mnuchin said at a conference sponsored by the Milken Institute.

"The time for being able to pull this off is now coming to a close", said Rod von Lipsey, managing director at UBS Private Wealth Management. "The market has been listless because it understands that it's probably not going to happen".

Investors are swinging between optimism about a possible coronavirus vaccine that helped to propel an earlier market rally and unease about lackluster US economic activity. The benchmark index broke a strong four-day winning streak on Monday.

The Dow Jones Industrial Average fell 190.60 points, or 0.67 percent, at the open to 28,323.40. The pullback knocked the Dow back into the red for the year.

All 11 major sectors of the S&P 500 trade in the negative territory after the opening bell and with the Energy Index is leading the decliners with a loss of 2.5%. At one point it had been up 0.6%. The iPhone maker also was the index's biggest gainer.

The Nasdaq composite gave up 54.86 points, or 0.5%, to 11,713.87. "That's making the market nervous and in response, you're seeing the lockdown stocks moving higher".

Wall Street lost ground after two major drugmakers announced they were halting their COVID-19 clinical trials over safety concerns and an agreement on the next round of United States coronavirus relief aid remains up in the air.

Even so, this week's kick-off to earnings reporting season is painting a mixed picture for investors.

Recent bank earnings reports left those focused on trading clocking big gains, while retail banks took a hit from the COVID-19 pandemic. Analysts now expect earnings to fall 18.9% from a year, according to Refinitiv IBES data, versus a 25% drop on July 1. But they're forecasting the decline to moderate from the almost 32% plunge from the spring as the economy has shown signs of improvement. So did a report that ConocoPhillips is in talks to buy Concho Resources.

Tech stocks fell, weighing down the broader S&P 500.

The Kospi in Seoul shed 0.8% to 2,361.21 despite a strong market debut by the company that manages popular South Korean boy band BTS. Big Tech stocks, including Apple and Microsoft, powered much of the gains.

Prices for producers rose 0.4% last month from August, double economists' expectations.