Profit ratio

Wall Street closes on a drop in Apple shares and bank stocks

  • Indices down: Dow 0.69%, S&P 500 0.84%, Nasdaq 0.81%
  • Apple shares fall after report on slowing hiring
  • Bank stocks erase gains to close

July 18 (Reuters) – Wall Street ended lower on Monday after bank stocks erased earlier gains and shares of Apple (AAPL.O) fell on a report that the company planned to slow growth hiring and spending next year.

After posting solid gains in early trading following results from Bank of America Corp (BAC.N) and Goldman Sachs Group Inc (GS.N), the S&P financials sector (.SPSY) weakened in fencing.

Apple shares reversed course to close 2.1% lower at $147.1 on a Bloomberg report that said the company plans to slow growth in hiring and spending next year in some units to deal with a potential economic downturn. Read more

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Goldman Sachs rose 2.5% on reporting a weaker-than-expected 48% decline in second-quarter profit, helped by strength in its fixed-income trading.

Concerns about a one percentage point larger rate hike at the end of July eased following remarks from Fed officials last week that policymakers could stick to a increase of 75 basis points. Read more

“It’s really hard to maintain upward momentum,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “And that’s kind of the story of bear markets.”

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 13, 2022. REUTERS/Brendan McDermid

The Dow Jones Industrial Average (.DJI) fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 (.SPX) lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite (.IXIC) fell 92.37 points, or 0.81%, to 11,360.05.

Nine of the 11 major S&P 500 sectors lost ground, with healthcare (.SPXHC) and utilities (.SPLRCU) suffering the biggest percentage declines, while energy (.SPNY) saw the most big gain.

Earnings from big tech companies next week will be closely watched, after their shares came under immense selling pressure for much of this year.

Among other tech stocks, Google’s parent company Alphabet fell 2.5%. IBM fell 1.3%.

Volume on U.S. exchanges was 10.63 billion shares, compared to an average of 12.15 billion for the full session over the past 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a ratio of 1.20 to 1; on the Nasdaq, a ratio of 1.06 to 1 favored the decliners.

The S&P 500 posted a new 52-week high and 31 new lows; the Nasdaq Composite recorded 30 new highs and 78 new lows.

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Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D’Silva and Deepa Babington

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