US Stocks gave back weak profits

Market Trends - 07/02/2019

Yesterday US Stocks moved lower while the stock market was trying to absorb the confused quarterly profits results. President Donald Trump's second State of the Union address was also in focus and created some turbulence in the market. The popular Nasdaq Composite dipped more than 0.3% to around 7,375.25 while companies like Alphabet, Facebook declined at least 0.3% as well. The S&P 500 dropped about 0.2% to 2,731.60, giving back a five-day winning streak.

The Dow Jones Industrial Average finished 21.20 points lower at 25,390.29.

Yesterday's downgrade occurs a day later following the major indexes that advanced broadly. On Tuesday, S&P 500 and Nasdaq advanced more than 0.4% and 0.7%. The Dow increased more than 150 points.

According to FactSet more than half of S&P 500 corporations have posted quarterly results through Wednesday morning, and more than 60% of those companies, have surpassed expectations.

Better-than-expected results for the popular company General Motors yesterday sent its shares more than 1.5% higher while Snap and Walt Disney also published better-than-expected returns. Jeffrey Kleintop, the chief global investment strategist at Charles Schwab stated that "Expectations for the first and second quarter of this year are near zero. Those expectations were double digits going back to Sept. 30, which wasn't that long ago." and added. "That, I think, is weighing on the market".


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