US stocks retreat from records on mixed earnings, data

US stocks retreat from records on mixed earnings, data

Gold coin on display on Wall Street
A gold coin, produced by Perth Mint and supposedly worth US$45 million stands on display at the New York Stock Exchange (NYSE) on Jul 16, 2019 located at Wall Street in New York City.  (Johannes EISELE / AFP)

NEW YORK: Wall Street stocks finished lower on Tuesday (Jul 16), 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.

"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 23.53 points (0.09 per cent) at 27,335.63.

The broad-based S&P 500 shed 10.26 points (0.34 per cent) to end the session at 3,004.04, while the tech-rich Nasdaq Composite Index fell 35.39 points (0.43 per cent) 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 per cent higher after reporting record profits of US$9.7 billion in the second quarter. The bank's consumer businesses were strong, but it signalled 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 per cent, while Goldman Sachs jumped 1.9 per cent after reporting better-than-expected profits.

Johnson & Johnson slid 1.6 per cent after lifting its full-year revenue forecast, but not its outlook for profits.

Tesla dipped 0.4 per cent as it cut the price on some models of the Model 3, reviving concerns about vehicle demand. The company is tweaking prices "in order to continue to improve affordability for customers," a spokesman said.

Source: AFP/de

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