Wall Street declines at the end of the session. The Nasdaq is down firmly again

2022-01-19 22:12

publication
2022-01-19 22:12

Wall Street declines at the end of the session.  The Nasdaq is down firmly again
fot. Bryan Smith / / ZUMA Press

Wednesday’s session on Wall Street ended with declines despite gains during the day. Markets follow incoming corporate financial reports for the fourth quarter, but the main concerns remain related to the prospect of impending US interest rate hikes.

The Dow Jones Industrial closed by 339 points or 0.96 percent at the close to 35,028.65 points. The S&P 500 lost 0.97 percent at the end of the day. and amounted to 4,532.76 points. Nasdaq Composite fell 1.15 percent. and closed the session at 14,340.25 points. The index has already dropped 10 percent. from the historic peak of last November.

“We are in the late phase of the cycle where companies may report lower earnings due to weaker GDP growth and higher interest rates, but expect the ongoing downturns to be brief,” said Luca Paolini, chief strategist at Pictet Asset Management.

“Investors are concerned that higher interest rates and tougher financial conditions will lead to a reduction in the value of companies,” added Jack Ablin, partner at Cresset Capital.

Analysts estimate the profit growth rate at 22.4 percent. for the S&P 500 index in Q4, which, according to FactSet, would be the fourth consecutive quarter with earnings growth above 20%.

Bank of America shares rose 1 percent. The bank’s earnings per share in the fourth quarter were 82 cents against an expected 77 cents. Morgan Stanley’s stock was up 2.5 percent. – fourth-quarter earnings per share were $ 2.08 versus expectations of $ 1.94. Procter & Gamble’s quotes grew by 3.5%. Revenues in the reporting period amounted to $ 20.95 billion versus projected $ 20.34 billion.

“Higher inflation has increased cost concerns for many companies. Since Procter & Gamble’s margins have proven to be good, some of those concerns have faded away,” said Matt Maley, Miller Tabak + Co.’s chief market strategist.

UnitedHealth went up 1.5 percent. – the company’s revenues in the reporting period amounted to USD 73.74 billion, compared to the market consensus of USD 72.78 billion.

Yields on 10-year US treasury bonds rose to 1.91% on Wednesday, the highest level since December 2019.

(P.A.P. Business)

kkr/ pr/

Source:P.A.P. Business

The post Wall Street declines at the end of the session. The Nasdaq is down firmly again appeared first on World Today News.

Source link

Leave a Comment