U.S. stocks look set to start Wednesday’s session on the back foot as traders digest mixed earnings news flow and continued pouring in of weak economic data points.
Cues From Tuesday’s Trading:
The major averages closed Tuesday’s session on a mixed note as profit-taking following two straight sessions of strong advances triggered weakness in the market. Lackluster nationwide business activity data provided the impetus to unwind some of the bets.
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Preliminary estimates released by S&P Global on Tuesday showed that both the manufacturing and services sectors continued to remain in contraction territory.
Industrial, real estate, utility and consumer staple stocks saw moderate strength, while communication services, healthcare and IT services stocks move to the downside.
The start of trading on Tuesday was marred by a technical glitch on the NYSE that halted trading in many blue-chip stocks.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -0.27% | 11,334.27 | |
| S&P 500 Index | -0.07% | 4,016.95 | |
| Dow Industrials | +0.31% | 33,733.96 |
Analyst Color:
“We are in the trough of the S&P 500’s earnings slowdown,” fund manager Louis Navellier said in an exclusive comment to Benzinga. Positive guidance is now more important than actual quarterly results due to the lingering uncertainty, he added.
The market held up remarkably well amid lackluster sales and earnings from companies such as 3M Co. MMM, Johnson & Johnson JNJ and Union Pacific Corp. UNP and the technical glitch, he noted.
Navellier sees a bumpy mid-February from the earnings perspective and flagged the Federal Open Market Committee meeting’s policy statement due on Feb. 1 as the most important forthcoming event.
“The Fed is anticipated to raise the federal funds rate 0.25%, but everyone is hoping for dovish comments in the …….
