US stocks finish mixed as earnings and key data approach

what happened

According to Newsmetry API, US stocks ended Monday’s session mixed. The S&P 500 and Nasdaq declined, with the Nasdaq posting the larger loss after chip stocks dropped 2.7%. The indexes now stand 0.2% and 1.3%, respectively, below their record closing highs reached last week. The Dow finished 4.6% below its all-time closing high from August 5.

Eight of the S&P 500’s 11 major sectors ended higher, but a 0.9% decline in technology shares and a 0.7% retreat in consumer discretionary stocks weighed on the broader market. Front-month WTI and Brent futures gained 2.1% and 1.8%, respectively. Attacks by Iran-backed Houthis on Saudi Arabia and hurricane-related production cuts in the Gulf of Mexico increased supply concerns. Energy, communication services and regional banks outperformed, while airlines, homebuilders and chip stocks were among the weakest groups.

Tuesday brings results from Goldman Sachs, JPMorgan Chase, Citigroup and Wells Fargo, marking the unofficial start of third-quarter earnings season. The latest LSEG data show analysts expect aggregate S&P 500 earnings growth of 30.6% year over year, following 53.7% growth in the second quarter. The NFIB small-business optimism index and September existing-home sales from the National Association of Realtors are also due. The Labor Department will release CPI and PPI reports on Wednesday and Thursday.

why it matters

Markets are entering a week packed with earnings and inflation data, with expectations for corporate results already high. Oil’s advance supported energy shares while supply concerns added to cross-market pressure. The CPI and PPI releases could affect expectations for Federal Reserve rate decisions.

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