NEW YORK: Wall Street stocks finished little changed on Tuesday (April 18) following a flattish day of mixed bank earnings and good Chinese economic data.
Bank of America climbed 0.6% after reporting higher profits thanks to a boost from higher interest rates, while Goldman Sachs dropped 1.7% following results that were hit by a slowdown in corporate mergers.
“We are not seeing real trauma from the banking sector but traders are picking some winners and losers,” said Steve Sosnick of Interactive Brokers, adding that the drop in deposits at many banks shows lingering reservations about the industry.
Analysts also pointed to a reading of Chinese economic growth that came in at 4.5% in the first quarter, significantly higher than the 3.8% predicted by analysts in an AFP poll.
The Dow Jones Industrial Average fell 10.55 points, or 0.03%, to 33,976.63, the S&P 500 gained 3.55 points, or 0.09%, to 4,154.87 and the Nasdaq Composite dropped 4.31 points, or 0.04%, to 12,153.41.
The early quarterly results from S&P 500 companies come as investors have been bracing for a gloomy reporting season, fearing the economy may be on the cusp of a downturn.
“What we are seeing here is the calm before the storm as far as earnings go,” said Brad McMillan, chief investment officer of Commonwealth Financial Network. “The market is just trying to see, do we have some upside here or not, and I think it is really going to come down to earnings over the next couple of weeks.”
Among individual companies, Southwest Airlines dropped 0.8% after it temporarily suspended US departures due to an information technology problem.
Boeing advanced 1.6% after the company reaffirmed its plan to ramp up production on the 737 MAX despite a problem with supplier part that has delayed some deliveries.
Nvidia jumped 2.5% following an upgrade from HSBC Securities, which cited the company’s “incredible” opportunity to exercise “pricing power” on chips tied to artificial intelligence. – AFP, Reuters