US stocks closed lower on Monday, having wavered throughout the afternoon, as investors contrasted encouraging Bank of America earnings with rising bond yields before there are more signs of results this week. week.
Most of the 11 main sectors of the S&P they went down
The S&P 500 lost 0.9 points, or 0.02%, to 4,391.69 units, while the nasdaq it lost 18.72 points, or 0.14%, to 13,332.36. The Dow Jones Industrial Average it fell 39.54 points, or 0.11%, to 34,411.69 units.
Market players are bracing for a flurry of results to help them assess the impact of the war in Ukraine and the spike in inflation on corporate finances. Netflix, Tesla, Johnson & Johnson and International Business Machines will present their results this week.
Low trading volumes after the Easter holidays and a close of European markets on Monday further contributed to a turbulent session.
“The market is looking for a direction. We may get it from the results. But the biggest factors are still China with its zero-Covid policy and the Fed on interest rates and inflation,” said Jack Janasiewicz, Portfolio Manager and Principal Strategist at Natixis Investment Managers.
“It’s going to be some time before either of us gives us clear direction. Against that backdrop, I’m not surprised we’re still trading in a (narrow) range.”
Bank of America completed the results season of the big banks in wall street, reporting strong growth in its consumer lending business, although its investment banking unit was hit by a slowdown. Its stock rose, while the broader S&P 500 index of banks also gained.
Mega-cap stocks like Apple Inc. Y Meta Platforms fell as the benchmark 10-year Treasury bond yield rose to 2.85%, having hit 2.884% earlier, the highest return since December 2018.
Shares of leading growth and technology companies have come under pressure from expectations of a series of interest rate hikes that threaten to erode their future profits.
Teslahowever, rose as it prepares to reopen its Shanghai plant after a nearly three-week closure due to Covid-19.
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