US stocks give up an early lead and end lower on Wall Street

US stocks give up an early lead and end lower on Wall Street

Wednesday, January 27, 2021

Print this page Email A Friend!


Stocks capped a day of muted trading on Wall Street with slight losses yesterday, giving back some of their modest gains from a day earlier.

The S&P 500 slipped 0.1 per cent after spending much of the day drifting between small gains and losses. Declines in banks, industrial companies and elsewhere pulled the market lower. Gains in some Big Tech companies, including Amazon and Facebook, helped keep the losses in check.

Small-company stocks fell more than other areas of the market, while blue chip companies like Johnson & Johnson and General Electric (GE) climbed after reporting better-than-expected results. Treasury yields rose.

The market has been mostly making small moves since last week, keeping the stock indexes near their recent record highs, as investors weigh solid corporate earnings results against renewed worries that troubles with COVID-19 vaccine rollouts and the spread of new variants of coronavirus might delay a recovery from pandemic.

“Most major indexes are hovering near all-time highs, so for the market to be taking a little breather is not too surprising, given the ascent we've seen recently,” said Angelo Kourkafas, investment strategist at Edward Jones.

Investors are in the midst of quarterly earnings reporting season for US companies, and this is the busiest week so far. Dozens of large companies are reporting this week, from all parts of the economy, including American Express, J&J, Apple, GE and others.

More than 100 companies in the S&P 500 are scheduled to tell investors this week how they fared during the last three months of 2020. As a whole, analysts expect S&P 500 companies to say their fourth-quarter profit fell 5 per cent from a year earlier. That's a milder drop than the 9.4 per cent they were forecasting earlier this month, according to FactSet.

“The major theme, not only today but this week, is earnings season,” Kourkafas said. “The early results are encouraging.”

General Electric climbed 2.7 per cent after the industrial conglomerate reported a surge in cash flow. GE is attempting a turnaround after shedding unprofitable divisions and focusing more on big industrial products like jet engines and power equipment. Typically, when a company is in turnaround, investors care more about cash flow than quarterly profits because it shows the company is able to pay down debts.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT