S&P 500 and Nasdaq fall as data and geopolitics offset strong results

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, on September 28, 2023. REUTERS/Brendan McDiarmid/File Photo Obtaining licensing rights

  • JPMorgan and Wells Fargo rise as third-quarter earnings beat
  • The S&P 500, the Dow Jones index achieves weekly gains, and US crude prices rise
  • The University of Michigan Preliminary Consumer Confidence Index came in at 63 vs. 67.2 estimate
  • Indices: Dow Jones rises 0.12%, S&P falls 0.50%, Nasdaq falls 1.23%

Oct 13 (Reuters) – The S&P 500 and Nasdaq closed lower on Friday as deteriorating consumer sentiment data and conflict in the Middle East made investors reluctant to take high-risk bets and overshadowed upbeat quarterly earnings for some of the largest U.S. banks.

Wall Street’s three major indexes opened higher but lost ground after a preliminary reading on US consumer confidence showed a sharp decline in October. The Dow Jones managed to make small gains.

Investors were also watching news coming out of the Middle East. Israel announced on Friday that it had carried out raids inside the Gaza Strip, in its first announcement of ground operations targeting Hamas fighters after their bloody attack in Israel. The United Nations said that Israel’s call for civilians to leave Gaza was impossible “without devastating humanitarian consequences.”

US Treasury bond prices rose as investors searched for safety, while the price of US crude oil settled at an increase of 5.8%.

“This indicates more risk aversion,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. She added that movements in bonds, stocks and oil reflect concerns about deteriorating consumer sentiment, the global economy and geopolitical conflict.

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At this point in the economic cycle when data is good but “expected to deteriorate over the next few months,” shifts in leadership are incredibly common and no market narrative tends to last more than a couple of days, Goodwin said. in time.”

However, unless there is a major escalation in the Middle East war, the strategist said she does not expect Friday’s mood to be “indicative of the beginning of a turbulent market.”

The Dow Jones Industrial Average rose 39.15 points, or 0.12%, to 33,670.29 points, the Standard & Poor’s 500 Index lost 21.83 points, or 0.50%, to 4,327.78 points, and the Nasdaq Composite Index fell 166.99 points, or 0.50%. 1.23% to 13407.23.

However, during the week the S&P 500 posted a 0.45% gain for its second straight weekly advance. The Nasdaq index fell 0.18% during the week. The Dow Jones index showed a gain of 0.79%, ending a two-week losing streak.

Among the 11 major industrial sectors in the S&P, Energy (.SPNY) led gains, advancing 2.3% as oil prices rose. Defensive sectors such as Utilities (.SPLRCU), which rose 1%, and Consumer Staples (.SPLRCS), which added 0.8%, were also big gainers.

Other safe haven assets such as gold rose.

Shares of JPMorgan Chase (JPM.N), Wells Fargo (WFC.N) and Citigroup (CN) rose after their quarterly profits beat analyst estimates, helped by higher interest rates. Wells Fargo rose 3% and JPMorgan closed up 1.5%, but Citigroup lost ground, closing down 0.2%.

The Standard & Poor’s 500 banking index trimmed its gains as the day continued, closing 0.6% higher after rising as much as 3.4% to the highest level in three weeks.

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Philadelphia Fed President Patrick Harker said he believes the central bank has likely finished its interest rate hike cycle as price pressures ease.

Among individual stocks, BlackRock Asset Management fell 1.3 percent after recording a sharp decline in quarterly net inflows.

UnitedHealth (UNH.N) stock advanced 2.6% after beating third-quarter earnings estimates.

Dollar General (DG.N) stock rose 9% after the discount store retailer brought back former CEO Todd Vassos to replace CEO Jeff Owen.

Boeing (BA.N) fell 3% after the planemaker and Spirit AeroSystems (SPR.N) expanded ongoing inspections for a production defect affecting the 737 Max 8 planes. Spirit shares lost 0.9%.

Declining issues outnumbered advancing stocks on the NYSE by a ratio of 1.56 to 1; On the Nasdaq, a 1.68-to-1 ratio favored losing stocks.

The S&P 500 recorded 12 new 52-week highs and 20 new lows; The Nasdaq Composite recorded 28 new highs and 335 new lows.

On American stock exchanges, 10.06 billion shares were traded, compared to an average of 10.37 billion during the last 20 sessions.

(Reporting by Sinead Caro, Shishwat Chauhan and Ankika Biswas in Bengaluru; Preparing by Mohammed for the Arabic Bulletin) Editing by Shaunak Dasgupta, Anil D’Silva, Shinjini Ganguly and Richard Chang

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