free counter

Markets dip as Pelosi’s Asia trip puts markets on edge

NY (AP) Stocks shifted between small gains and losses in morning trading on Wall Street Tuesday as investors reviewed the most recent corporate earnings for clues on inflations continuing impact.

The S&P 500 index fell 0.2% by 11: 18 a.m. Eastern. The Dow Jones Industrial Average fell 202 points, or 0.6%, to 32,594 and the Nasdaq was mostly unchanged.

Pricey technology stocks and industrial companies were on the list of biggest weights on the broader market. Microsoft fell 1.1% and Boeing slipped 2.7%.

Utilities and healthcare stocks gained ground. Intuitive Surgical rose 5.4% and NextEra Energy rose 1.2%.

The yield on the 10-year Treasury rose to 2.65% from 2.61% late Monday.

Corporate earnings remain an integral focus for investors because they try to measure the health of the economy amid record high inflation, rising interest levels and recession fears.

Rideshare company Uber surged 15.1% after reporting surprisingly strong second-quarter revenue. Construction equipment maker Caterpillar fell 3.8% following the economic bellwether reported disappointing second-quarter revenue. Starbucks delivers its results later Tuesday.

Companies within the benchmark S&P 500 have already been reporting mostly solid earnings, but most are also warning about weaker customer spending and higher costs due to ongoing supply chain issues. Businesses have raised prices on from food to clothing to keep up their profits.

Individuals are also getting squeezed by gas prices. While prices attended down recently, U.S. crude oil prices remain up 25% this season.

Central banks have already been attempting to rein in inflation by raising interest levels to slow economic growth. The Federal Reserves key short-term interest reaches its highest level since 2018. Which has Wall Street worried that the Fed could go too much and tip the economy right into a recession.

Government data the other day showed that the U.S. economy contracted in the next quarter, suggesting it might already maintain a recession. Retail sales along with other economic data show that individuals are pulling back on spending. But, recession fears have already been softened by reports showing strong employment.

The Labor Department reported on Tuesday that American employers posted fewer job openings in June because the economy contends with raging inflation and rising interest levels. Openings certainly are a still-high 10.7 million. The work market has been resilient this season, and companies have complained that it’s hard to fill open positions: Employers have added typically 457,000 jobs per month in 2022; and unemployment is near a 50-year low.

The Labor Departments jobs report for July, out Friday, is likely to show that employers tacked on another 250,000 jobs last month.


AP Economics Writer Paul Wiseman contributed.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker