After an initial rise on Monday US Markets turned downward, in anticipation of a “season” of quarterly results that do not look to be giving investors’ confidence.
As usual, the aluminum producer Alcoa kicked off the earnings and confirmed the pessimism. Its results and outlook disappointed, and the stock price lost nearly 4% in after-hours trading.
The profits of companies in the S&P 500 are expected to be down 7.7% on average in the first quarter, according to media outlets.
The stock market has experienced a turbulent start to the year, followed by a strong rebound since mid-February and the major indices are now little changed since the 2016 open. As usual also, several banks will announce their results this week, starting with JPMorgan Chase on Wednesday.
Financial stocks index, which so far is the worst performing sector since the beginning of the year, posted a modest gain of 0.34% on Monday. However, the only sector to finish up was natural resources.
The Dow Jones lost 20.55 points and closed at 17,556.41.
Back to stocks, Yahoo gained 1.14%, with the parent company of the British newspaper Daily Mail talking with third parties to mount a bid on the internet assets of the US group.
Norfolk Southern lost 2.7%, as Canadian Pacific decided to abandon its takeover bid of $28 billion.
On the foreign exchange market, the dollar reduced its losses against the yen after touching a 17-month low of 107.64, with Japan again warning it could intervene to weaken the currency.
A number of officials from the Federal Reserve will speak this week but traders are not holding out hope for anything unexpected.Previous Post » Stocks Fly As Oil Freeze Looks Likely