Thursday, April 18, 2024

US stocks edge below latest record highs in early trading

by Associated Press

Stocks are opening slightly lower on Wall Street Tuesday, edging the market below the latest record highs it set just a day earlier, as traders look over a report showing a jump in inflation last month and the latest batch of quarterly earnings reports from big U.S. companies. The S&P 500 slipped 0.1%. JPMorgan Chase fell 1.3% after reporting that its revenue fell in the latest quarter, partly due to a broad decline in interest rates, even as its profits doubled thanks largely to a drop in bad loans. European markets were mixed and Asian markets closed higher.

Global stock markets rose Tuesday as investors looked ahead to U.S. earnings reports that are expected to show strong profits for banks.

London opened higher and Shanghai, Tokyo and Hong Kong advanced. Frankfurt declined.

Wall Street futures were lower after the benchmark S&P 500 index rose 0.3% on Monday to a new high, led by banks, communications and consumer-oriented stocks.

“Wall Street is bracing for a volatile week” as traders decide “whether to bet on growth or cyclicals,” Edward Moya of Oanda said in a report.

In early trading, the FTSE 100 in London added 0.3% to 7,145.81 while Frankfurt’s DAX shed less than 0.1% to 15,778.61. The CAC in Paris declined 0.2% to 6,546.59.

On Wall Street, the S&P 500 future was 0.1% lower. That for the Dow Jones Industrial Average was down less than 0.1%.

On Monday, the Dow added 0.4% and the Nasdaq composite gained 0.2%.

The indexes have hit multiple highs lately in choppy trading.

In Asia, the Shanghai Composite Index rose 0.2% after China’s June export growth accelerated to 32.2% over a year earlier.

That was an improvement from May’s 28% growth, customs data showed Tuesday. Imports grew 36.7%, down from the previous month’s explosive 51% rise.

The Nikkei 225 in Tokyo gained 0.5% to 28,718.24 and the Hang Seng in Hong Kong added 1.6% to 27,965.34.

The Kospi in Seoul advanced 0.8% to 3,271.38 and Sydney’s S&P-ASX 200 was little-changed at 7,332.10.

India’s Sensex rose 0.7% to 52,741.66. New Zealand, Singapore and Bangkok gained while Jakarta retreated.

Expectations for U.S. corporate profits are high as companies release quarterly results, led by Wall Street banks on Tuesday.

Earnings are expected to surge 64% from a year earlier, according to FactSet. That would be the biggest year-over-year growth since 2009 after the global financial crisis.

Stocks have risen sharply in the past year on expectations corporate profits would rebound once the pandemic ends. Without strong profits, it will be difficult to justify high stock prices and record market valuations.

In energy markets, benchmark U.S. crude rose 45 cents to $74.55 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 46 cents on Monday to $74.10. Brent crude, the price basis for international oils, added 47 cents to $75.63 per barrel in London. It lost 39 cents the previous session to $75.16 a barrel.

The dollar gained to 110.37 yen from 110.34 yen. The euro declined to $1.1847 from $1.1858.

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