Stocks Surrender Early Gains

Dismal earnings reports expected Tuesday
By Newser Editors and Wire Services
Posted Jul 13, 2020 3:47 PM CDT
S&P 500 Down After Stocks Give Up Early Gains
Men walk in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Monday, July 13, 2020. Asian shares rose Monday.   (AP Photo/Eugene Hoshiko)

Stocks gave up an early gain and turned lower Monday in another day of roller-coaster trading. The S&P 500 fell 0.9% after being up more than 1.6% earlier. Technology companies, which led the market higher in the morning, led it lower in the afternoon. Investors were discouraged to see that California extended a shutdown of bars and indoor dining and ordered gyms, churches, and hair salons closed in most places as coronavirus cases keep rising. The S&P 500 fell 29.82 points to 3,155.22. The Dow Jones Industrial Average gained 10.50 points, or less than 0.1%, to 26,085.80, and the Nasdaq Composite dropped 226.60 points, or 2.1%, to 10,390.84.

Earnings reporting season really gets going on Tuesday, when several of the country’s biggest banks are slated to report their results, including JPMorgan Chase. Across the S&P 500, expectations are almost universally dreadful, the AP reports. Analysts say the biggest US companies likely saw their earnings per share plummet nearly 45% from April through June, compared with year-ago levels. That would be the sharpest drop since the depths of the Great Recession in 2008, according to FactSet. Investors, however, largely seem willing to give a pass for such terrible results in the latest quarter and maybe even for a couple more. "We—and many investor—expect the coronavirus-induced collapse in profits will be concentrated in 2020," Goldman Sachs strategists wrote in a report.

(Read more stock market stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.