{"id":37810,"date":"2023-05-08T18:30:11","date_gmt":"2023-05-08T18:30:11","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/futures-muted-key-inflation\/"},"modified":"2023-05-08T18:30:59","modified_gmt":"2023-05-08T18:30:59","slug":"wall-street-subdued-on","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/wall-street-subdued-on\/","title":{"rendered":"Wall Street subdued on bleak earnings ahead of inflation data"},"content":{"rendered":"

By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl<\/p>\n

(Reuters) – U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week.<\/p>\n

Shares of Catalent Inc tumbled 25.5% as the contract drug manufacturer saw lower revenue and core profit in 2023, while Tyson Foods dropped 15.9% on a surprise second-quarter loss and a cut in its annual revenue forecast.<\/p>\n

A rebound in regional lenders ran out of steam by midday trading, with the KBW Regional Banking index falling 1.86% after posting its best single-day performance in seven weeks on Friday. <\/p>\n

The struggle for a clearer direction comes after a rally on Friday, when U.S. jobs data pointed to a resilient labor market.<\/p>\n

“Whenever you have a big up day, people need more good news to keep the market up every day in a row,” said portfolio manager Moez Kassam of Anson Funds.<\/p>\n

Also weighing on the main indexes was a 1.1% decline in shares of Microsoft Corp, while Apple Inc was flat after rising 4.7% on Friday when it posted upbeat results. <\/p>\n

The spotlight this week, however, will be on the Labor Department’s inflation reading on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data are all lined up for the week. <\/p>\n

Data points this week will help investors not only gauge whether the Federal Reserve’s aggressive tightening cycle – including its most recent 25 basis point hike last week – is working towards tamping down inflation but also if fears of stagflation are founded. <\/p>\n

“The bigger picture is inflation will remain higher for longer and that we are heading into a recession,” Michael James, managing director of equity trading at Wedbush Securities.<\/p>\n

“Whether that’s hard or soft remains to be seen, but until there’s something to disprove that bigger picture thesis, the overall market is going to remain somewhat range bound.”<\/p>\n

The Dow Jones Industrial Average fell 68.99 points, or 0.2%, to 33,605.39, the S&P 500 gained 0.93 points, or 0.02%, to 4,137.18 and the Nasdaq Composite added 10.28 points, or 0.08%, to 12,245.69.<\/p>\n

A rally in regional banks’ shares proved short-lived, with PacWest Bancorp rising 5.6% after gaining as much as about 30% earlier in the session after the lender sharply cut its quarterly dividend to boost capital.<\/p>\n

Shares of regional banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.<\/p>\n

Warren Buffett’s Berkshire Hathaway Inc’s Class B shares rose 0.9% after posting a $35.5 billion first-quarter profit, boosted by gains from stocks such as Apple.<\/p>\n

American Airlines Group Inc rose 3.1% after J.P. Morgan raised its rating to “overweight” from “neutral”.<\/p>\n

Shares of Zscaler Inc rose 3.5% after the cloud security company raised its annual forecast.<\/p>\n

Declining issues outnumbered advancing ones on the NYSE by a 1.10-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored decliners.<\/p>\n

\u00a0\u00a0\u00a0 The S&P 500 posted 11 new 52-week highs and seven new lows; the Nasdaq Composite recorded 54 new highs and 73 new lows.\u00a0\u00a0<\/p>\n

\n

(Reporting by Shreyashi Sanyal and Shristi Achar in Bengaluru; Editing by Nivedita Bhattacharjee, Maju Samuel and Deepa Babington)<\/p>\n

\"tagreuters.com2023binary_LYNXMPEJ47094-VIEWIMAGE\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Shreyashi Sanyal, Shristi Achar A and Carolina Mandl (Reuters) – U.S. stock indexes struggled for direction on Monday amid disappointing earnings from Tyson Foods and Catalent, a weak rebound in regional banks, and a shift in focus to a key inflation reading later this week. Shares of Catalent Inc tumbled 25.5% as the contract […]<\/p>\n","protected":false},"author":8,"featured_media":37811,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-37810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ47094-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=37810"}],"version-history":[{"count":7,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37810\/revisions"}],"predecessor-version":[{"id":38303,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37810\/revisions\/38303"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/37811"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=37810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=37810"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=37810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}