Absence of big moves could signal market is running out of steam; Ford, Whole Foods fall
RIVA GOLD
A deluge of earnings reports Thursday swung individual stocks but left major U.S. indexes near where they started the day.
U.S. stocks have largely stalled since they repeatedly hit new highs earlier in the month. Many investors had expressed hope that a stream of stronger-than-expected corporate earnings would propel stocks further.
Yet with more than half of S&P 500 companies having reported their quarterly results, the index has moved an average of 14 points between its daily low and daily high so far this month—its narrowest trading range since November 2014. The S&P 500 is down 0.2% from its July 22 record.
“At this point, it feels like the market is a little tired,” said Zhiwei Rein, a portfolio manager at Penn Mutual Asset Management, with $20 billion in assets under management.
Investors said the absence of big moves even in the thick of earnings season could be a sign that the market is running out of momentum.
With the market being up solidly for the year, “it doesn’t seem like there’s a tremendous amount of upside,” said Michael Scanlon,managing director at Manulife Asset Management, which has $325 billion in assets under management.
On Thursday, the Dow Jones Industrial Average fell 15.82 points, or 0.1%, to 18456.35. The S&P 500 gained 3.48 points, or 0.2%, to 2170.06, while the Nasdaq Composite rose 15.17 points, or 0.3%, to 5154.98.
Fed Chairwoman Janet Yellen testifies before the Senate Banking, Housing and Urban Affairs Committee last month. The central bank left interest rates unchanged on Wednesday.PHOTO: GETTY IMAGES
Technology shares gained. Facebook rose $1.66, or 1.4%, to a record of $125after the company reported strong earningslate Wednesday.
Ford Motor had its worst percentage drop since August 2011, slumping 1.13, or 8.2%, to 12.71 after the auto maker said its profit fell in the second quarter and projected weaker U.S. sales in the second half.
S&P 500 Leaders and Laggards - 1 Day
Shares of grocery group Whole Foods Market, which late Wednesday said competition and falling food prices dented sales, fell $3.03, or 9%, to 30.61.
U.S. crude oil fell 1.9% to $41.14 a barrel after a government report Wednesday showed U.S. crude stockpiles unexpectedly rose. Oil prices are down 15% for the month.
The Stoxx Europe 600 index fell 1%, led lower by the banking sector.Lloyds Banking Group fell 5.8% in London after the U.K.’s biggest retail bank cut 3,000 jobs and warned that Britain’s vote to exit the European Union will hurt the country’s economy in coming months.
Japan’s Nikkei Stock Average fell 1.1% on Thursday as the Bank of Japan began a two-day policy meeting, amid concerns that stimulus there could disappoint.
COURTESY:http://www.wsj.com/articles/stocks-inch-lower-as-investors-mull-fed-1469691658
COURTESY:http://www.wsj.com/articles/stocks-inch-lower-as-investors-mull-fed-1469691658
