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Home / Business / S & P trades near flat as Citigroup's results weigh on bank deposits by Reuters

S & P trades near flat as Citigroup's results weigh on bank deposits by Reuters



© Reuters. Traders working on the NYSE floor in New York

By April Joyner

NEW YORK (Reuters) – The reference S & P 500 index changed little changed on Monday after fluctuating between positive and negative territory throughout the session Citigroup Inc (N 🙂 kicked off the earnings season with a mixed quarterly report.

The bank reported a better than expected profit, but also a decrease in the net interest margin. The fall in net interest margin triggered a fall in shares in other banks due to concerns that it would result in lower industry profits as interest rates declined.

Although Citigroup shares erase almost all of their losses to end up with only 0.1

% lower, the S & P 500 bank index <.spxbk> wear 1.0%. Parts of JPMorgan Chase & Co (N :), Goldman Sachs Group Inc (N 🙂 and Wells Fargo & Co (N 🙂 – All Set to Report Results on Tuesday – rejected More than 1%.

As a result, financial stocks () fell by 0.5% to weigh most on S & P 500 among the 11 largest sectors.

Gains in technology () and health care losses in financial stocks, however. These sectors contributed to the Nasdaq edge raising its fourth order in record highs.

Second quarter earnings began seriously this week, and analysts expect the S&P 500 companies to report a 0.3% surplus, which will be the first quarter fall for three years, according to Refinitiv IBES data.

US stocks are likely to be subdued until more results come in, says Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. The three main indices ended last week at record highs, as bold comments from the Federal Reserve mayor Jerome Powell reinforced hopes that the central bank would cut interest rates later this month.

"It's definitely a wait-and-see environment," said Pursche. . "Citi was seen as a bit disappointing."

Nevertheless, solid earnings could give US stocks a further increase, said Lamar Villere, portfolio manager of the Villere Balanced Fund in New Orleans.

"We think earnings should be generally positive this season," he said. Dow Jones Industrial Average () rose 27.13 points, or 0.1% to 27.359.16, S & P 500 () gained 0.53 points, or 0.02% to 3.014.3, and Nasdaq Composite () added 14 , 04 points, or 0.17% to 8,258.19.

Gilead Sciences Inc (O 🙂 shares rose 2.7% and helped increase the S&P 500 Healthcare Index, which Drugmaker said it would invest $ 5.1 billion in a large extension of the partnership with biotechnology Galapagos NV (AS :).

Boeing Co (N 🙂 shares lame 1.0% after a Wall Street Journal report https://www.wsj.com/articles/boeing-737-max-grounding-could-stretch -in-2020-11563112801 on Sunday that its 737 MAX jet could be grounded in early 2020.

Symantec Corp (O 🙂 shares stumbled 10.7%, the largest percentage decrease among S & P 500 companies, following a report that cybersecurity company and Broadcom Inc (O 🙂 ha ve terminated contract negotiations. Broadcom shares increased by 1.0%.

Accelerated issues represented reduced numbers on the New York Stock Exchange with a 1.04 to 1 ratio; On the Nasdaq, a 1.06 to 1 ratio had favored decliners.

S & P 500 posted 66 new 52-week highs and two new downs; Nasdaq Composite registered 77 new highs and 64 new lows.

Volume on US stock exchanges was 5.39 billion shares, compared to the average of 6.69 billion shares for the entire session over the last 20 days.


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