NEW YORK (AP) — The most recent week of earnings for the New York Stock Exchange had a mixed end Friday, after several large U.S. companies released better-than-expected earnings reports.
The S&P 500 fell 4.62, or 0.1%, to end at 4,505.42, coming off its highest close since April 2022. The Dow Jones Industrial Average rose 113.89 points, or 0.3%, to close at 34,509.03, and the Nasdaq Composite fell 24.87 integers, or 0.2%, to settle at 14,113.70.
Insurance giant UnitedHealth Group rose 7.2% after reporting that its spring earnings growth was better than feared. It also raised the lower limit of its full-year profit forecast.
JPMorgan Chase rose 0.6% after it said its spring earnings rose more than expected, thanks in part to its acquisition of troubled First Republic Bank. Their stocks had risen higher in the morning, but throughout the day they were losing ground as was the broader market. Wells Fargo also suffered a 0.3% drop after it had previously advanced after posting better-than-expected second-quarter earnings.
Financial services firm State Street helped Wall Street slide, as it fell 12.1% after posting slightly lower-than-expected revenue in the latest quarter, though its earnings beat forecasts.
Earnings season is just getting started, and Wall Street’s expectations for it are low. Analysts are forecasting the worst drop in earnings per share for S&P 500 companies since spring 2020. If their forecasts are correct, it would be the third straight quarter that earnings have fallen.
Two reports released this week showed that inflation in the US economy continued to decline in June. That bolstered investor hopes that the Federal Reserve is close to being satisfied enough with the price level to end its streak of interest rate hikes.
The yield on the 10-year Treasury rose to 3.82% from 3.77%, but is still well below the 3.98% on Tuesday, before the inflation reports were released.
Yields rose after a report on Friday hinted that consumers are feeling much better about the economy thanks to slowing inflation and a job market that remains strong. A preliminary reading of a University of Michigan survey showed consumer sentiment at its highest level since September 2021, though lower-income earners aren’t feeling quite as optimistic.
The high level of American consumer spending has been one of the main pillars that have kept the economy out of recession. They have continued to spend despite high interest rates, and employers have continued to hire more workers.
Associated Press writer Yuri Kageyama contributed to this report.
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2023-07-14 22:35:19
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