Stocks ended the day on another blizzard with mixed results on Wall Street Monday. In the last hour of trading, the S&P 500 went up, down, up and down again and closed down 0.4%. Losses at several big tech companies left the Nasdaq down 0.6% and the Dow Jones Industrial Average closed essentially unchanged. Shares of smaller companies rose. Uncertain trading follows weeks of volatility for major indices as traders try to figure out how stock valuations will be affected by interest rate hikes on the horizon as the Federal Reserve moves to reduce inflation. .
This is a breaking news update. Below is an earlier story from Associated Press.
Shares rose on Wall Street on Monday afternoon as investors prepare for another busy week of corporate earnings.
The S&P 500 was up 0.3% as of 3:04 p.m. Eastern. The Dow Jones Industrial Average ended 179 points, or 0.5%, higher at 35,269 and the Nasdaq was up 0.3%. Shares of the smaller company outperformed the broader market. The Russell 2000 rose 1.2%.
Energy and finance companies posted solid profits. Chevron rose 2.3% and insurer Allstate rose 2.5%.
Retailers, travel-related companies and others that rely on direct consumer spending also gained ground. the gain. Amazon rose 1.2% and Carnival rose 8.3%.
The losses of many large technology and communications companies outweighed the gains elsewhere in the market. Facebook’s parent company Meta fell 4.8% and Google’s parent company Alphabet fell 1.9%. Microsoft fell 0.7%.
The yield on the 10-year Treasury fell to 1.92% from 1.93% late Friday.
Wall Street is coming off two weeks of gains after January’s stumbling block, which partly acted as a “pressure relief valve,” said Mark Hackett, head of investment research at Nationwide.
“Some of the emotions we’ve been battling with in the first several weeks of the year are starting to subside,” he said. “You almost needed it; the expectations were too high.”
Investors are still anticipating the impact of rising inflation on businesses and consumers while being cautious about the Federal Reserve’s plan to fight inflation. Investors will get another important update on inflation Thursday, along with the Labor Department’s report on consumer prices for January.
The Fed plans to raise interest rates to fight inflation. Investors expect the first hike in March and are concerned about the pace and volume of rate hikes in 2022.
Investors have had another busy week to review the latest corporate report cards. Meat producer Tyson Foods rose 11.6% after reporting strong results.
Several large companies are set to report their results this week, including Pfizer on Tuesday and Walt Disney on Wednesday. Twitter and Coca-Cola will report on Thursday.
Apart from earnings, many companies gained ground from the news of buyouts. Spirit Airlines jumped 18% after Frontier Airlines’ parent company agreed to buy the carrier in a $2.9 billion deal.
Peloton rose 20.5% after reports that the exercise bike and treadmill company is a buying target for companies including Nike and Amazon. The company has been on a roller-coaster ride since the pandemic began. Its stock soared over 400% in 2020 as COVID-19 forced a lockdown and shifted the workout trend from gym to home. It spends 2021 to give back all those benefits as businesses reopen and people start going back to gyms.
Shares have been volatile this year for Peloton, especially after reports in January that it was temporarily halting production of its connected fitness products amid declining consumer demand. Activist investor Blackwells Capital asked the company to consider removing CEO John Foley and selling the company just days after those reports.
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