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Wall Street falls as energy stocks fall

Wall Street fell slightly in volatile trading as losses at Apple and energy firms dampened the bullish resolve of major indices that had rebounded to week-long highs in the previous session.

Apple weighed the heaviest on the S&P 500 and the Nasdaq, falling 0.4% the day after a 3.8% surge. The energy sector fell 1.6%, tracking lower oil prices on concerns about slowing demand.

“This reflects yesterday’s strong rally and the market is digesting it,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.

After a dull start to August, the market revived on Wednesday, boosted by a number of strong results from companies such as PayPal Inc and CVS Health.

The benchmark index is up nearly 13.8% from its mid-June low, but remains in a bear market, down 13% for the year.

The second-quarter earnings season helped the market recover from concerns such as the fallout from the Ukraine war, spikes in inflation, a resurgence of China’s COVID-19 incidents, and a sharp rise in borrowing costs.

While the unexpected rebound in service activity in July has eased recession fears, market participants are now turning their attention to data related to the labor market.

The July jobs report, due on Friday, is expected to show nonfarm payrolls likely increased by 250,000 last month, after adding 372,000 in June.

The data is critical as the US Federal Reserve seeks to cool labor demand to keep inflation in check.

“Investors are realizing that we are in a soft landing for the economy… What will shake the market is if we see a significant reduction in growth expectations, i.e., many that are actually growing. If you end up with a company, get rid of an employee who could be a problem,” said Sam Stovall, CFRA’s chief investment strategist.

Media reports last night said Walmart was cutting the roles of hundreds of companies in its restructuring efforts.

In early trading, the Dow Jones Industrial Average fell 97.65 points (0.30%) to 32,714.85, the S&P 500 fell 8.51 points (0.20%) to 4,146.66, and the Nasdaq Composite fell 8.23 ​​points (0.06%). Cent, 12,659.93.

Tesla rose 0.7% ahead of investor votes on various issues, including a 1-for-3 stock split that would make the company’s shares more affordable.

Health insurer Cigna Corp rose 3.7% after raising its full-year earnings forecast.

Pharmaceutical company Eli Lilly and Co fell 2.9% following a second annual earnings forecast cut.

Losers outnumber gainers on the New York Stock Exchange by 1.02 to 1.

On the Nasdaq, gainers outnumber losers by 1.24 to 1.

The S&P index made one 52-week high and 29 new lows, while the Nasdaq posted 28 new highs and 14 new lows.

Wall Street falls as energy stocks fall

Source link Wall Street falls as energy stocks fall

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