US Stocks Edge Lower as Earnings Reports Ramp Up
NEW YORK (AP) — U.S. stocks edged lower as investors assessed a mixed bag of corporate earnings and economic reports.
Technology companies led the broader market lower with the heaviest declines coming from chipmakers. Intel fell 1.4% and Texas Instruments fell 1.5%.
Johnson & Johnson led health care stocks lower, despite topping Wall Street’s financial forecasts. Energy companies also fell broadly.
A surprisingly good retail sales report for June had little impact on consumer product makers, though it did help push bond prices lower. The yield on the 10-year Treasury rose to 2.13%.
Industrial companies fared the best in early trading. Union Pacific rose 1% and FedEx rose 2.5%. Financial stocks also rose broadly, with Goldman Sachs rising 2.4% following a solid second quarter earnings report.
The latest round of corporate financial reports ramps up this week and investors have low expectations. Wall Street is forecasting a 3% drop in profit for S&P 500 companies. It is set to be the first back-to-back quarterly decline in three years.
The influx of earnings reports are coming in ahead of a highly anticipated Federal Reserve meeting at the end of the month. Wall Street expects the central bank to raise interest rates to help secure U.S. economic growth threatened by a trade war with China.
KEEPING SCORE: The S&P 500 index fell less than 1% as of 10:05 a.m. Eastern time. The Dow Jones Industrial Average was mostly unchanged. The Nasdaq composite fell slightly.
SOUR DOUGH: Domino’s Pizza fell 4.3% after the pizza chain fell far short of Wall Street forecasts for a key sales measure during the second quarter. The company reported a 3% increase in sales at established locations while analysts had forecast a 4.6% increase.
SHOCKING FORECAST: Arrow Electronics fell 2.8% after the company slashed its profit forecast for the second quarter because of weak demand. The electronic components company said global demand slumped and it will close its personal computer business while cutting overall costs.
BURGER BOOST: Blue Apron jumped 17.5% after the meal-kit company said it will start offering recipes with Beyond Meat’s plant-based food. The company will start offering the options in August.
By AP reporter Damian J. Troise