{"id":1555133,"date":"2022-07-14T17:35:24","date_gmt":"2022-07-14T21:35:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1555133"},"modified":"2022-07-14T17:35:40","modified_gmt":"2022-07-14T21:35:40","slug":"sp-500-dow-close-lower-after-bank-earnings-inflation-data","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sp-500-dow-close-lower-after-bank-earnings-inflation-data\/","title":{"rendered":"S&#038;P 500, Dow close lower after bank earnings, inflation data"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsp-500-dow-close-lower-after-bank-earnings-inflation-data%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1555133&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Stephen Culp<\/p>\n<p>NEW YORK (Reuters) \u2013     The S&#038;P 500 pared early losses to close modestly lower on Thursday after investors digested disappointing quarterly results from two large U.S. banks and hotter-than-expected inflation data.<\/p>\n<p>Initially, all three major U.S. stock indexes sold off sharply in the wake of second-quarter earnings from JPMorgan Chase &#038; Co and Morgan Stanley. Both reported slumping profits and warned of impending economic slowdown.<\/p>\n<p>Losses narrowed as the session wore on, with advancing microchip stocks helping nudge the Nasdaq Composite Index to a nominal gain.<\/p>\n<p>\u201cThere was an irrational response to the JPMorgan and Morgan Stanley results,\u201d said Jay Hatfield, chief executive and portfolio manager at InfraCap in New York. \u201cIt wasn\u2019t a surprise that investment banking was weak.\u201d<\/p>\n<p>\u201cJPMorgan warned that there\u2019s uncertainty in the market, but if you\u2019re alive and breathing you know there\u2019s uncertainty in the market.\u201d<\/p>\n<p>JPMorgan CEO Jamie Dimon struck a cautious note on the global economy while Morgan Stanley\u2019s investment banking unit struggled to cope with a slump in global dealmaking.<\/p>\n<p>Shares of JPMorgan Chase and Morgan Stanley fell 3.5% and 0.4%, respectively, while the S&#038;P Banks index shed 2.4%.<\/p>\n<p>Slowdown worries were exacerbated as the Labor Department\u2019s Producer Price Index report echoed Wednesday\u2019s Consumer Price Index data, showing hotter-than-expected inflation in June.  <\/p>\n<p>The sell-off began to ease after Fed Governor Christopher Waller said he supported another 75 basis point interest rate increase in July, easing jitters over an even bigger, 100 basis point hike.<\/p>\n<p>\u201cThe Fed is going to rise rates by 75 but they shouldn\u2019t,\u201d Hatfield said. \u201cThe Fed has already done a lot to reduce inflation but they\u2019re not going to realize that until they see it in the rear view mirror.\u201d <\/p>\n<p>\u201cThe thing to remember about the Fed is it\u2019s almost as if their third mandate is to be behind the curve,\u201d Hatfield added. <\/p>\n<p>On Wednesday, the odds of a larger hike grew after the CPI report, considering the central bank\u2019s intention to aggressively tackle decades-high inflation \u2013 a prospect which increases chances of an economic contraction. <\/p>\n<p>\u201cThere will be a recession but a mild one,\u201d said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. \u201cThe key component is continued strength in the labor market. Given where we are in the employment picture, that\u2019s not an immediate threat.\u201d<\/p>\n<p>Core inflation, which strips out food and energy prices, continues to ease from the March peak, although it remains well above the central bank\u2019s average annual 2% target:<\/p>\n<p>(Graphic: Inflation: https:\/\/graphics.reuters.com\/USA-STOCKS\/lbpgnebeyvq\/inflation.png)<\/p>\n<p>The Dow Jones Industrial Average fell 142.62 points, or 0.46%, to 30,630.17, the S&#038;P 500 lost 11.4 points, or 0.30%, at 3,790.38 and the Nasdaq Composite added 3.60 points, or 0.03%, at 11,251.19.<\/p>\n<p>Eight of the 11 major sectors of the S&#038;P 500 ended the day in negative territory, with financials suffering the largest percentage loss, dropping 1.9%.<\/p>\n<p>Tech was the biggest gainer.<\/p>\n<p>With earnings season officially underway, analysts expect aggregate S&#038;P 500 second-quarter year-on-year profit growth of 5.1%, far less than the 6.8% estimate at the beginning of the quarter, according to Refinitiv.<\/p>\n<p>U.S.-listed shares of Taiwan Semiconductor Manufacturing rose 2.9% following the chipmaker\u2019s upbeat revenue guidance.<\/p>\n<p>Conagra Brands tumbled 7.2% after issuing an annual earnings forecast that came in below estimates. <\/p>\n<p>Declining issues outnumbered advancers on the NYSE by a 3.11-to-1 ratio; on Nasdaq, a 2.12-to-1 ratio favored decliners.<\/p>\n<p>The S&#038;P 500 posted one new 52-week high and 44 new lows; the Nasdaq Composite recorded nine new highs and 294 new lows.  <\/p>\n<p>Volume on U.S. exchanges was 10.86 billion shares, compared with the 12.48 billion average over the last 20 trading days. <\/p>\n<p>(This story refiles to add dropped word in paragraph 13)<\/p>\n<p> (Reporting by Stephen Culp; Additional reporting by Amruta Khandekar in Bengaluru; Editing by Richard Chang)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2726300\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/tagreuters.com2022binary_LYNXMPEI6D0G7-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI6D0G7-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Stephen Culp NEW YORK (Reuters) \u2013 The S&#038;P 500 pared early losses to close modestly lower on Thursday after investors digested disappointing quarterly results from two large U.S. banks<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1555133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1555133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1555133"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1555133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1555133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1555133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1555133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}