Stocks end near flat as investors assess earnings, data
Fed officials signal pause on rate cuts
Initial jobless claims unchanged from prior week
Meta climbs on Bernstein price target boost
Indexes: Dow up 0.06%, S&P 500 off 0.22%, Nasdaq down 0.52%
Updated at 4:07 p.m. ET/ 2007 GMT
By Chuck Mikolajczak
NEW YORK, April 18 (Reuters) -U.S. stocks closed near the unchanged mark on Thursday, as investors sifted through the latest corporate earnings, while economic data and comments from Federal Reserve officials suggested the central bank was unlikely to cut interest rates in the near future.
Economic data showed that the labor market remained resilient, as weekly initial unemployment claims were unchanged from the prior week at 212,000 while a gauge of manufacturing in the mid-Atlantic region rose to a two-year high.
The solid labor market, recent reading showing sticky inflation, and comments from Fed officials, including Chair Jerome Powell, have led markets to back off expectations the central bank would cut interest rates by at least 25 basis points (bps) at its June meeting.
"I wouldn't be surprised if we go through a fall or spring where it's an air pocket for a while," said Richard Alt, Principal and CEO at Carnegie Investment Counsel in Cleveland, Ohio, referring to a drop in stock prices.
"But the numbers are going to come in with unemployment low and 70% of this economy consumer spending, if unemployment continues to be low consumers will continue to spend, they'll continue to travel, they'll continue to demand services and that's going to drive earnings and prices up towards the end of the year."
According to preliminary data, the S&P 500 .SPX lost 12.02 points, or 0.24%, to end at 5,010.19 points, while the Nasdaq Composite .IXIC lost 82.35 points, or 0.52%, to 15,601.02. The Dow Jones Industrial Average .DJI rose 23.87 points, or 0.06%, to 37,777.18.
The S&P 500 saw its fifth straight session of declines, as equities have struggled recently following a five-month rally that started in November, in part due to expectations the Fed was likely to cut interest rates in the first half of the year.
The five-session run of declines marks the longest for the benchmark S&P index since October.
After the closing bell, Netflix NFLX.O fell about 4% in extended trade after posting its quarterly results.
Comments on Thursday from Fed officials reiterated the lack of urgency to lower rates, as New York Federal Reserve President John Williams cited the robust economy while Atlanta Federal Reserve President Raphael Bostic said he is "comfortable being patient" as inflation is returning to the Fed's 2% target more slowly than expected.
Market expectations for a rate cut of at least 25 bps in June have shrunk to 15.2%, according to CME's FedWatch Tool, with July standing at 41.5%. down from 48.4% a week ago.
On the plus side, stock Meta Platforms META.O rose 1.54% as the biggest boost to the S&P 500after Bernstein raised its price target to $590 from $535.
Earnings season continued to pick up steam with Genuine Parts GPC.N surging 11.22% asthe top percentage gainer on the S&P, after the automotive parts distributor raised its 2024 profit forecast.
In contrast, LasVegas Sands LVS.N dropped 8.66% as the worst S&P performerdespite beating quarterly expectations, as multiple brokerages cut their price target on the stock, citing weakness in its Macau operations.
Equifax EFX.N also tumbled, down 8.49%after the credit ratings firm forecast its second-quarter revenue below estimates.
On the NYSE declining issues outnumbered advancing ones by a 1.2-to-1 ratio and by a 1.18-to-1 ratio on the Nasdaq.
The NYSE saw 34 new highs and 95 new lows while the Nasdaq had 24 new highs and 238 new lows.
Volume on U.S. exchanges was 10.54 billion shares, compared with the 10.99 billion average for the full session over the last 20 trading days.
US unemployment claims https://reut.rs/3JtnV6Y
Reporting by Chuck Mikolajczak; Editing by Aurora Ellis
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
