U.S. Share Prices Fall for Fifth Consecutive Session Due to Concerns Over Corporate Earnings and Impeachment Hearings

Strategic Insights -

The U.S. stock market experienced its fifth consecutive session of decline on Monday, December 14, as investors continued to take profits amidst concerns over corporate earnings and the ongoing impeachment hearings. The Dow Jones Industrials fell by 126.16 points to 8,695.60, while the S&P 500 dropped 25.26 points to 1,141.20. The negative trend on the New York Stock Exchange (NYSE) was evident, with decliners leading advancers 2,271 to 799.

Key Takeaways:

  • The Dow Jones Industrials fell 126.16 points to 8,695.60 on Monday, December 14, marking the fifth consecutive session of decline.
  • The S&P 500 dropped 25.26 points to 1,141.20, exacerbating the negative trend.
  • Fears over disappointing corporate earnings, particularly from companies like Merck and Proctor & Gamble, contributed to the market's decline.
  • Analysts and traders downplayed the impact of the impeachment hearings, expecting that President Clinton's removal from office was unlikely.
  • Technology shares, often seen as a bellwether for market performance, fell, with IBM declining 5 1/8 to 162 7/8, Intel down 4 7/8 at 111 9/16, and Dell down 2 7/16 at 64 3/4.
  • Despite the market's negativity, a strategist from Fahnestock & Co. noted that the majority of the decline was out of the way, and that the period between the third week of December and the end of January often sees small cap stocks outperforming, which could provide some support to the market.

Statistics:

  • Dow Jones Industrials fell 126.16 points to 8,695.60.
  • S&P 500 dropped 25.26 points to 1,141.20.
  • NYSE decliners led advancers 2,271 to 799.
  • Volume on the NYSE was 695 million shares.
  • Mattel fell 7 7/8 to 22 1/4 due to low orders from inventory-heavy retailers.
  • Microsoft fell 6 1/16 to 127 15/16 after announcing a $200 million investment in Qwest Communications.
  • Qwest Communications down 2 3/8 at 41.

Sources:

  • Market News International
  • PRNewswire