U.S. stocks closed lower on Tuesday after sinking into small gains and losses at the start of the trading session, as inflation concerns affected sentiment ahead of the unofficial start of the third-quarter earnings season.
How did the key indicators trade?
Dow Jones Industrial Average DJIA,
It closed at 34,378.34, down 117.72 points or 0.3%.
S&P 500 SPX,
It fell 10.54 points, or 0.2%, to 4,350.65.
Nasdaq Composite Comp,
It ended 20.28 points or 0.1% lower at 14,465.92.
This was the third, day of direct losses for the three main indicators.
What drives the market?
With the start of the earnings season on Wednesday, investors are concerned that executives will report that supply-chain and inflation are declining corporate profits, which could bring new blows to Wall Street sentiment.
“There is a lot of concern in the market right now surrounding the growth outlook, as it relates to the impact of high energy prices” and disruptions in the global supply chain, said Jack Janasiewicz, lead portfolio strategist at Netix Investment Manager Solutions, in a Tuesday phone interview.
“It filters directly into the earnings season,” he said. “Everyone is waiting to hear and see at a kind of break” from companies about how they are moving forward between higher costs and wages.
Read: How can stock-market investors give an idea of supply-chain chaos
According to S&P Global Market Intelligence, earnings per share for the S&P 500 components are forecast to increase by 25% in the third quarter. EPS for the second quarter averaged better than 89%.
Earnings watch: If supply-chain and stuffing problems don’t come up, earnings are at an all-time high.
“Many companies that move or make things are warning of profit pressures due to rising input costs and supply chain-related production deficits. This is reflected in the earnings of a prudent analyst for the third quarter, “said David Bianco, chief investment officer at DWS.
DWS is still forecasting 4,400 levels for the S&P 500 by the end of the year.
Tom Plumb, portfolio manager at Plumb Balanced Fund PLBBX, said investors would be shocked at how they are digesting rising costs for labor and other inputs, but hits in margins could be lower.
“Historically, the best kind of investment is when you get something that blends in with the cycle of secular change,” he said. “The point is to invest in productivity-enhancing software and equipment,” he said.
Read: 2021 stock-market heights are ‘almost certain’, unless earnings clear this bar
Meanwhile, the International Monetary Fund says it is now seeing 5.9% growth globally যা less than one-tenth of one percent of the July forecast এবং and then slowing to 4.9% growth in 2022. 1% to 6%, the German forecast is five tenths to 3.1% and the Canadian forecast is six tenths to 5.7%.
In a phone interview on Tuesday, Frank Rybinski, macro strategist at Egan Asset Management, said Rosie’s “growth forecast” was declining. But “we don’t think the economy is being braked.”
In his view, the economic recovery will continue as the number of Covid-1 cases from the coronavirus delta decreases. “We are still seeing an upward trend for many edges,” Rybinski said.
See also: Failure to control Covid-1 will cost হারিয়ে 5.3 trillion in lost global growth over the next five years, IMF estimates
The National Federation of Independent Business said on Tuesday that its optimistic index fell one point to 99.1 in September, the lowest since March, as small business owners became frustrated with the lack of supply and skilled workers.
In the face of the labor market, job opportunities in the United States fell to an unprecedented 11.1 million from 10.4 million in August, the official report said on Tuesday. A record number of workers resigned in August as businesses struggled to find jobs.
Views: ‘I quit,’ a record number of U.S. workers tell their bosses
Which company was the focus?
General Motors Company
He said it had reached an agreement with Korea LG Electronics Inc.
The Chevrolet Bolt bears the cost of withdrawing electric vehicles and electric utility vehicles due to production defects in the battery modules supplied to LG GM. GM’s shares rose 1.5%.
Shares of Matson Inc.
The shipping company jumped about 8.4% late Monday night after saying its demand for shipping services would increase profits more than expected. Matson added a second shipping route from China to Southern California in May 2020, then added another route to Northern California earlier this year, known as CCX.
Signet Jewelers Limited
Charlotte, NC-based Diamonds Direct USA Inc. announced the acquisition of 490 million, a jewelry retailer that adds “off-the-mall” and Signet’s marital business. Signet shares fell 0.5%.
It said on Tuesday it planned to hire 3,700 workers by the end of the year. Shares rose 1.8%.
What have other markets done?
Yield at 10 year US Treasury note TMUBMUSD10Y,
2.5 basis points decreased 1.579%. Yield and debt prices go in the opposite direction.
ICE USD Index DXY,
The currency measure, in contrast to the six main rival kites, rose 0.2%.
U.S. oil futures end higher, with benchmark CL00,
Gold futures GC00, rising about 0.2% to 80.64 per barrel
It rose 0.2% to 1, 1,759.30 an ounce.
Stoxx Europe 600 SXXP,
0.1% lower, while London’s FTSE 100 UKX,
Shanghai Composite SHCOMP,
Hang Seng Index HSI, while down 1.2%
Hong Kong’s Nikkei fell 1.4% and Japan’s Nikkei 225 NIK.
– Steve Goldstein contributed to this article.