US Stock Markets Close Flat Amid Corporate Results and Inflation Concerns

(ABM FN-Dow Jones) The US stock markets closed flat on Wednesday.

The leading S&P 500 index was flat at 4,154.53 points, the Dow Jones index lost 0.2 percent at 33,897.01 points and the Nasdaq was flat at 12,157.23 points.

Wall Street saw a series of corporate results on Wednesday as the market appears more relaxed about the possible trajectory of US interest rates. The market puts the odds of the Fed raising rates by 25 basis points in two weeks at 88 percent.

“With all the developments in the banking sector, people were curious about the reaction of the market to the quarterly figures. Many banks have now opened their books and so far there have been no major surprises. Wall Street is still maintaining a ‘wait and see’ attitude,” said online broker LYNX.

There was pressure from persistently high inflation figures from the United Kingdom. The data raised the question of whether investors are missing the point on the most likely trajectory for inflation.

“Markets generally expect inflation to ease as economic growth slows,” said market analyst Mark Heppenstall of Penn Mutual Asset Management.

“The consensus is that recessions eventually kill inflation. The key word is ‘eventually’ and it’s not clear how much damage would have to be done to the economy to meet the Fed’s inflation target of 2 percent,” he added.

During the second half of the trading day, the focus shifted to the Beige Blook, showing that overall activity in the US has changed little over the past few weeks. Expectations for future growth also remained broadly unchanged, according to the report, although outlooks deteriorated in two districts.

Employment growth has moderated somewhat in recent weeks, while price levels have risen moderately, although the pace of increases appears to be slowing.

On a macroeconomic level, it was announced on Wednesday that the number of mortgage applications in the US fell by 8.8 percent last week. The market index fell from 229.5 to 209.2.

The euro/dollar was quoted at 1.0954. At the start of the trading day in New York, the currency pair was still moving at 1.0955 and around the close of the American stock exchanges on Tuesday there was a level of 1.0971 on the boards.

The May futures for a barrel of West Texas Intermediate crude closed 2.1 percent lower on Wednesday at $79.16 on the New York Mercantile Exchange. The most recent data from the US energy agency EIA showed on Wednesday that US crude inventories fell by nearly 5 million barrels last week.

On a macroeconomic level, four publications are scheduled for Thursday in the US. Before the market opens the weekly applications for aid and the Phildelphia Fed index, followed by existing home sales and the leading indicators.

Company news

Morgan Stanley posted lower profits than a year earlier, due to higher costs and bad loan provisions, while revenues also declined. The stock rose 0.6 percent.

On Tuesday evening, Netflix and United Airlines already released figures.

United Airlines remained positive about the improving air travel market and posted a smaller-than-expected loss in the past quarter. The stock gained more than 7.0 percent.

Netflix disappointed with its subscriber growth, which fell below 2 million paying customers in the past quarter. The share was about 3.2 percent lower.

Amazon would make a round of layoffs in its advertising division, according to business channel CNBC. The share rose more than 2.0 percent.

Tesla has again lowered prices in the United States. This is the sixth cut this year, according to Reuters. Tonight at the quarterly figures, the market will therefore pay close attention to the margin of the car manufacturer. The stock lost approximately 1.0 percent.

The Dutch ASML reported a significant drop in order intake in its first-quarter figures. The Dutch semiconductor giant is down 2.5 percent and that could affect the entire technology industry.

Fox pays $787 million in a settlement following a libel lawsuit from Dominion Voting Systems, the maker of the voting machines that Fox News denounced. Fox shares fell 0.4 percent.

Western Alliance rose more than 23.0 percent. The medium-sized bank, which came under pressure from the recent banking crisis surrounding Silicon Valley Bank, saw customer savings stabilize after a temporary outflow.

Alcoa, IBM and Tesla come with figures after the market.

Bron: ABM Financial News