S&P trades close to flat as Citigroup outcomes weigh on financial institution shares

NEW YORK (Reuters) – The benchmark S&P 500 index struggled for course in uneven commerce on Monday as earnings season started in earnest with a combined quarterly report from Citigroup Inc (C.N).

Merchants work on the ground on the New York Inventory Alternate (NYSE) in New York, U.S., July 1, 2019. REUTERS/Brendan McDermid

The financial institution reported a better-than-expected revenue but additionally a decline in curiosity margins. Citigroup shares erased early losses in afternoon buying and selling and have been final up 0.3%.

Shares of S&P 500 banks .SPXBK – together with JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc (GS.N) and Wells Fargo & Co (WFC.N), set to report outcomes on Tuesday – fell 1.0% within the wake of Citigroup’s outcomes.

Monetary shares .SPSY, which dropped 0.6%, weighed most closely on the S&P 500 amongst its 11 main sectors.

Second-quarter earnings begin in earnest this week and analysts anticipate S&P 500 corporations to report a 0.3% fall in revenue, which might be the primary quarterly drop in three years, in line with Refinitiv IBES knowledge.

U.S. shares will seemingly be muted till extra outcomes are available in, mentioned Oliver Pursche, chief market strategist at Bruderman Asset Administration in New York. The three essential indexes ended final week at document closing highs as dovish feedback from Federal Reserve Chairman Jerome Powell bolstered hopes that the central financial institution would ship its first rate of interest reduce in a decade later this month.

“It’s undoubtedly a wait-and-see surroundings,” Pursche mentioned. “If (outcomes) are higher than anticipated, then we are able to see one other leg up.”

The Dow Jones Industrial Common .DJI rose 10.33 factors, or 0.04%, to 27,342.36, the S&P 500 .SPX misplaced 0.02 factors, or -0.00%, to three,013.75 and the Nasdaq Composite .IXIC added 14.62 factors, or 0.18%, to eight,258.77.

Positive aspects in healthcare .SPXHC and know-how .SPLRCT shares offset losses in monetary shares. A 2.8% rise in Gilead Sciences Inc (GILD.O) shares helped enhance the S&P 500 healthcare index, because the drugmaker mentioned it will make investments $5.1 billion in a serious enlargement of its partnership with biotech Galapagos NV (GLPG.AS).

S&P and Dow heavyweight Boeing Co (BA.N) slipped 1.0% following a Wall Road Journal report here on Sunday that its 737 MAX jet might keep grounded till early 2020.

Symantec Corp (SYMC.O) shares tumbled 11.8%, the largest proportion drop amongst S&P 500 corporations, after a report that the cybersecurity firm and Broadcom Inc (AVGO.O) have ceased deal talks. Broadcom shares rose 1.4%.

Shares of paper packaging corporations Westrock Co (WRK.N), Packaging Corp of America (PKG.N) and Worldwide Paper Co (IP.N) shed between 1% and three% after a downgrade from KeyBanc, which cited dangers from an extra fall in containerboard and pulp costs.

Declining points outnumbered advancing ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.

The S&P 500 posted 63 new 52-week highs and two new lows; the Nasdaq Composite recorded 72 new highs and 55 new lows.

Reporting by April Joyner; Further reporting by Medha Singh and Uday Sampath in Bengaluru; Enhancing by Shounak Dasgupta and Chizu Nomiyama

Author: Maxwell C.

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