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On April 16, 2021, the New York Stock Exchange is seen in the Manhattan borough of New York City, New York, United States. Carlo Allegri/File Photo/REUTERS Reuters, July 13 – Investors digested a surge in consumer prices in June and profits from JPMorgan and Goldman Sachs that kicked off the quarterly reporting season, as the S&P 500 and Nasdaq closed down on Tuesday after hitting new highs earlier in the session. After a 30-year bond sale, the S&P 500 and Nasdaq achieved new highs, but swiftly dropped into negative territory. Treasuries were in lower demand than some investors expected, causing rates to rise. Consumer prices in the United States increased by the most in 13 years last month, according to data, while so-called core consumer prices increased by 4.5 percent year over year, the most since November 1991. find out more Economists characterized the price increase, which was fueled by travel-rated services and used autos, as mostly temporary, echoing the views of Federal Reserve Chair Jerome Powell. “Any time interest rates rise, the stock market gets nervous, especially on a day like today,” Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey, explained. The S& “With growth beating value, the lesson is obviously that inflation is not a serious concern in the long run from a market viewpoint,” said Keith Buchanan, a portfolio manager with GLOBALT Investments in Atlanta. Ten of the 11 major S&P 500 sector indexes ended the day lower, with real estate (.SPLRCR), consumer discretionary (.SPLRCD), and financials (.SPSY) all falling more than 1%. JPMorgan Chase & Co stock (JPM.N) dipped 1.5 percent after the business reported record quarterly profit growth but warned that low interest rates would prevent the company from generating record revenues in the near term. find out more The stock of Goldman Sachs Group Inc (GS.N) fell 1.2 percent after its quarterly earnings beat expectations. find out more Citigroup (C.N), Wells Fargo & Co (WFC.N), and Bank of America (BAC.N) were all scheduled to release their quarterly results on Wednesday morning. PepsiCo Inc (PEP.O) rose 2.3 percent after upgrading its full-year earnings projection, banking on stronger demand as COVID-19 limitations are eased. find out more According to Refinitiv data, S&P 500 earnings per share are predicted to jump 66 percent in the June quarter, with investors questioning how long Wall Street’s surge would persist after the benchmark index has risen 16 percent this year. The focus now shifts to Fed Chair Jerome Powell’s congressional hearing on Wednesday and Thursday, where he will discuss rising pricing pressures and future monetary support. The Dow Jones Industrial Average (.DJI) dropped 0.31 percent to 34,888.79 points, while the S&P 500 (.SPX) dropped 0.35 percent to 4,369.21 points. The Nasdaq Composite Index (.IXIC) fell 0.38 percent to 14,677.65 points. Conagra Brands Inc (CAG.N) fell 5.4 percent after the packaged foods firm warned that increasing raw material and ingredient costs would eat into its profit this year more than expected. find out more Boeing Co (BA.N) slumped 4.2 percent after the Federal Aviation Administration announced late Monday that some 787 Dreamliners that have yet to be delivered had a new manufacturing quality issue. find out more On the NYSE, declining issues outnumbered advancing ones by a 2.85-to-1 ratio, while on the Nasdaq, decliners were favored by a 3.06-to-1 ratio. The S&P 500 made 39 new 52-week highs while the Nasdaq Composite made 61 new highs and 73 new lows. On U.S. exchanges, volume was 9.5 billion shares, compared to an average of 10.5 billion for the full session for the previous 20 trading days. Devik Jain and Shreyashi Sanyal contributed additional reporting from Bengaluru, and Cynthia Osterman edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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