© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 27, 2022. REUTERS / Brendan McDermid
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By Aniruddha Ghosh and Noel Randewich
(Reuters) – Wall Street ended the session lower after a volatile session on Monday, with declines in Exxon Mobil (NYSE:) and other energy companies are weighing Boeing (NYSE:) profits as investors dig into the US stock market’s biggest monthly gain in two years.
Stocks gave up some of the strong gains from last week on bets the Federal Reserve might not need to be as aggressive with rate hikes as some had feared.
Also helped by better-than-expected second-quarter results, and Nasdaq in July posted its biggest monthly percentage gain since 2020.
The S&P 500 index bounced between gains and losses on Monday as some investors became more cautious after the recent rally.
The Federal Reserve has said it aims to contain inflation and cool demand by raising interest rates, but some investors and analysts fear its aggressive moves could increase unemployment and crippled the economy.
“There are still a lot of questions about whether we are really out of the woods economically, and perhaps we are,” said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta. not so”. “We’re not even clear on the (economic) impact of a rate hike by the Fed.”
A report showed that US manufacturing activity slowed less than expected in July, with signs that supply constraints are being eased.
That data comes after surveys showed factories across Asia and Europe struggled to find momentum in July as global demand surged and COVID-19 restrictions tightened. of China has slowed down production.
Oil prices fell on demand concerns, which weighed on the energy sector again. The S&P 500 energy index fell and was the deepest of 11 industry groups. [O/R]
Exxon Mobil fell 2.5% and was one of the biggest contributors to the S&P 500’s decline.
A monthly US jobs report on Friday will be analyzed for clues about the Fed’s next moves in the fight against decades-high inflation.
The US central bank has raised interest rates by 2.25 percentage points so far this year and vowed to be data-driven in its approach to future hikes.
Boeing Co rose 6.1% after Reuters reported that the US aviation regulator had approved the airline’s inspection and modification plan to continue delivering 787 Dreamliners.
The S&P 500 Index is down about 14% in 2022. However, recent quarterly reports show that corporate profits are much higher than estimates. Of the 283 S&P 500 companies that have reported results, 78% have topped profit estimates, according to Refinitiv data. The long-term average is 66%.
The S&P 500 index fell 0.28% to 4,118.59.
Nasdaq fell 0.18% to 12,368.98 points, while down 0.14% to 32,798.60 points.
US House of Representatives Speaker Nancy Pelosi visited Taiwan on Tuesday. China warned that its military would never “stand still” if she visited the self-governing island claimed by Beijing.
PerkinElmer Inc (NYSE:) rallied after the medical diagnostics company said it would sell some of its business along with the brand name to private equity firm New Mountain Capital for up to $2,500. 45 billion USD.
Across the US stock market, stocks fell more than stocks rose by a ratio of 1.1 to 1.
S&P 500 announces 5 new highs and 31 new lows; Nasdaq recorded 68 new highs and 98 new lows.
Volume on US exchanges was relatively light, with 10.3 billion shares traded, compared with an average of 10.8 billion shares over the previous 20 sessions.
