US stocks retreat from records

18 July, 2019 12:00 AM printer

NEW YORK: Wall Street stocks finished lower Tuesday, retreating from records following mixed earnings and economic data and amid talk the market is due for a pullback.

Earnings from large banks topped analyst expectations, but highlighted the risk that the expected Federal Reserve interest rate cut could pinch profits.

Some analysts pointed to comments from President Donald Trump indicating the US and China are still far from a trade deal, while others focused on the effects of gravity following a string of recent records in share prices, reports AFP.

“The S&P 500 has reached into a level of overbought territory that suggests a period of consolidation and increased volatility may lie directly ahead,” Canaccord Genuity equity strategist Tony Dwyer warned.

The Dow Jones Industrial Average finished down 0.1 percent at 27,335.63.

The broad-based S&P 500 shed 0.3 percent to end the session at 3,004.04, while the tech-rich Nasdaq Composite Index fell 0.4 percent to close at 8,222.80.

US retail sales for June easily topped estimates, suggesting a confident consumer. But quarterly manufacturing data declined for the second straight time, meeting the technical definition of a “recession” for that sector.

Among banks, JPMorgan Chase shook off early weakness and finished 1.1 percent higher after reporting record profits of $9.7 billion in the second quarter. The bank’s consumer businesses were strong, but it signaled that it expects lower net interest income due to expected Federal Reserve interest rate cuts.

That concern also weighed on Wells Fargo, which fell 3.1 percent, while Goldman Sachs jumped 1.9 percent after reporting better-than-expected profits.