Stocks end another day of highs and lows with mixed results

A woman walks past a bank's electronic board showing the Hong Kong stock index at the Hong Kong Stock Exchange on Monday, Feb. 7, 2022. Asian stocks fell on Monday, although Shanghai's benchmark index jumped after the markets reopen after the Lunar New Year holidays.  (AP Photo/Vincent Yu)

A woman walks past a bank’s electronic board showing the Hong Kong stock index at the Hong Kong Stock Exchange on Monday, Feb. 7, 2022. Asian stocks fell on Monday, although Shanghai’s benchmark index jumped after the markets reopen after the Lunar New Year holidays. (AP Photo/Vincent Yu)

PA

Another wobbly day on Wall Street ended Monday with an uneven finish for the major stock indexes, as losses at communications and technology companies overpowered gains elsewhere in the market.

The S&P 500 fell 0.4%, giving back some of its recent gains. The Dow Jones Industrial Average was little changed after hovering between a 0.7% gain and a 0.3% loss. The tech-heavy Nasdaq composite fell 0.6%.

The uncertain trading follows weeks of volatility for major indexes as traders try to figure out how stock valuations will be affected by interest rate hikes looming on the horizon as the Federal Reserve moves closer. trying to control inflation.

Wall Street is coming off two weeks of gains following a January slump that served in part as a “pressure relief valve,” said Mark Hackett, head of investment research at Nationwide.

“Some of the emotion that we faced in the first weeks of the year started to subside,” he said. “You almost needed it; expectations were so high.

The S&P 500 slipped 16.66 points to 4,483.87. The benchmark is now 6.5% below the record high it hit on January 3.

The Dow was essentially flat after rising 1.39 points to 35,091.13. The Nasdaq fell 82.34 points to 14,015.67.

Stocks of small companies outperformed the broader market. The Russell 2000 rose 10.24 points, or 0.5%, to 2,012.60.

Communications and technology companies were the biggest drag on the S&P 500. Facebook parent Meta fell 5.1% and Google parent Alphabet fell 2.9%. Microsoft fell 1.6%.

Energy and financial companies made solid gains. Chevron rose 2% and insurer Allstate rose 2.2%.

Travel-related businesses have also gained ground. Carnival rose 7.8%, Royal Caribbean 8.4% and American Airlines 5%.

Treasury yields were lower overall. The 10-year Treasury yield slipped to 1.92% from 1.93% on Friday night.

Investors are still measuring the impact of rising inflation on businesses and consumers while remaining cautious about the Federal Reserve’s plan to fight inflation. Wall Street will get another key inflation update on Thursday with the Labor Department’s consumer price report for January.

The Fed plans to raise interest rates to fight inflation. Investors anticipate the first hikes in March and are wary of the pace and quantity of rate hikes in 2022.

Investors have another busy week reviewing the latest corporate performance reports. Meat producer Tyson Foods rose 12.2% after reporting strong results.

Several major companies are on deck this week to report their results, including Pfizer on Tuesday and Walt Disney on Wednesday. Twitter and Coca-Cola will report on Thursday.

Outside of earnings, several companies gained traction on buyout news on Monday. Spirit Airlines jumped 17.2% after Frontier Airlines’ parent company agreed to buy the carrier in a deal worth $2.9 billion.

Peloton rose 20.9% following reports that the exercise bike and treadmill company is a takeover target for companies including Nike and Amazon. The company has been on a roller coaster since the start of the pandemic. Its stock jumped more than 400% in 2020 as COVID-19 forced lockdowns and shifted the workout trend from the gym to home. He spent 2021 returning nearly all of those gains as businesses reopened and people began to return to gyms.

Stocks have been choppy this year for Peloton, particularly following reports in January that it was temporarily halting production of its connected fitness products amid falling consumer demand. Activist investor Blackwells Capital has called on the company to remove CEO John Foley and consider selling the company just days after these reports.

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