Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Stumbles as Selling Into Strength Continues

Stock MarketsJan 21, 2022 08:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 ended sharply lower Thursday, paced by a slump in consumer discretionary stocks, and fresh weakness in tech after the sector failed to hold onto intraday gains for the second day in a row. 

The S&P 500 fell 1.1%, the Dow Jones Industrial Average fell 0.9%, or 313 points, the Nasdaq slipped 1.3%.

Consumer discretionary stocks were led lower by Amazon.com (NASDAQ:AMZN), Garmin (NYSE:GRMN), and VF Corporation (NYSE:VFC) as sentiment turned negative on risk assets late in the session.  

Financials struggled to hold onto gains even as investors digested better-than-expected quarterly results from the sector, and bought the recent dip in bank stocks.

The Travelers Companies (NYSE:TRV) jumped more than 3% after the insurance company delivered blowout quarterly results that beat on the top and bottom lines, led by gains in premiums written.

State Street (NYSE:STT), and Bank of New York Mellon (NYSE:BK) -- both of which were under pressure a day earlier following quarterly earnings that fell short of Wall Street forecasts - gained more than 1%.

M&T Bank (NYSE:MTB) and Regional Financials, however, were in the red, after quarterly results missed analysts’ expectations.

In tech, investors continued to sell into strength as the sector pared gains to end the day in negative ahead of the start of quarterly results from big tech, with Netflix (NASDAQ:NFLX) set to report after closing bell.

Ahead of Netflix's results, some on Wall Street have turned less constructive on the steaming media giant’s performance during the fiscal quarter, citing third-party data pointing to underwhelming subscriber additional in the quarter.

“As most Netflix data watchers have noticed, third party data that is used to gauge 4Q net adds has not been encouraging,” Deutsche Bank said in a note last week.

“Our analysis of Google (NASDAQ:GOOGL) trends data leads us to lower our 4Q net add estimate to 7.25 million, as compared to guidance of 8.5 million,” it added.

Energy stocks were pressured by falling oil prices amid data showing that U.S. weekly crude supplies unexpectedly rose.

On the economic front, weekly jobless claims expectedly increased, though economists downplayed the upside surprise, citing the impact of the omicron.

Initial jobless claims rose 55,000 to 286,000 in the week ending Jan.15, a three-month high, confounding expectations for a decline to 225,000.

“It is likely that business disruptions due to the spread of the Omicron variant of COVID had an impact on the data this week. We suspect that these disruptions will prove to be short-lived, but they will create some volatility in the next couple of weeks,” Jefferies said in a note.

In other news, Peloton Interactive (NASDAQ:PTON) is reportedly planning to temporarily stop production of connected fitness products amid waning demand, CNBC reported, citing internal documents. Its shares fell 24%.

S&P 500 Stumbles as Selling Into Strength Continues
 

Related Articles

Dow Futures Tick Higher as Major Indices Rebound
Dow Futures Tick Higher as Major Indices Rebound By Investing.com - May 18, 2022

By Oliver Gray  Investing.com - U.S. stock futures moved modestly higher on Tuesday evening after major benchmark indices rebounded from recent losses during regular trade,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email