Breaking News
0

Wall Street's five-day rally stumbles ahead of earnings

Stock MarketsJan 11, 2019 03:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the NYSE in New York

By Noel Randewich

(Reuters) - Falling energy shares late on Friday jeopardized continuation of Wall Street's five-session rally as investors looked ahead to earnings season, which will kick off with Citigroup , JPMorgan and other big banks next week.

Underpinned by optimism over China-U.S. trade talks and expectations of a slow pace of interest rate hikes from the Federal Reserve, the stock market's recent winning streak added 6 percent to the S&P 500 (SPX) and left it up about 10 percent from the 20-month low it hit around Christmas.

"We've clawed our way back and now the market is just waiting ahead of the start of earnings season next week," said Donald Selkin, Chief Market Strategist at Newbridge Securities in New York. "We're just drifting."

The S&P energy index (SPNY) dipped 0.84 percent, leading declines among 11 sectors as oil prices (LCOc1) dropped after nine days of gains. [O/R]

The financial index (SPSY) climbed 0.16 percent. Citigroup Inc (N:C), which will report earnings on Monday, rose 1 percent after agreeing to give shareholder ValueAct Capital more access to its books and board of directors.

JPMorgan Chase & Co (N:JPM), which reports on Tuesday, dipped 0.41 percent.

U.S. stocks took a severe beating in the last quarter of 2018 due to worries over trade, rate hikes and a slowdown in global growth.

Analysts expect S&P 500 companies' earnings per share to grow by 6.4 percent this year, compared with 23.5 percent in 2018, when they were supercharged by newly enacted corporate tax cuts, according to IBES data from Refinitiv.

General Motors (N:GM) on Friday gave a strong earnings forecast for 2019, sending the automaker's shares surging 7.6 percent.

At 2:44 pm ET, the Dow Jones Industrial Average (DJI) was down 0.2 percent at 23,954.39 points, while the S&P 500 (SPX) was 0.14 percent lower at 2,592.88.

The Nasdaq Composite (IXIC) dropped 0.28 percent to 6,966.74.

Netflix Inc (O:NFLX) rose 4.1 percent, bringing its gain in 2019 to 26 percent, helped by analysts' optimistic forecasts for subscriber growth ahead of its earnings next week.

Activision Blizzard Inc (O:ATVI) slumped 9.7 percent, the most on the S&P 500, after it transferred publishing rights for its "Destiny" video game franchise to Bungie.

Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on the Nasdaq, a 1.12-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs or lows; the Nasdaq Composite recorded 18 new highs and 8 new lows.

Wall Street's five-day rally stumbles ahead of earnings
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Dan Be
Dan Be Jan 11, 2019 9:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is it groundhog day?
Paul Dunne
Paul Dunne Jan 11, 2019 9:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email