Sign in Subscribe
Stock prices

US Stocks Fall for Fifth Straight Day Amid Corporate Earnings Concerns

Strategic Insights

— 2 min read

US stocks continued their downtrend, with major indices falling for the fifth consecutive day, as corporate earnings failed to impress investors. Banks and retailers, in particular, suffered losses, with Bank of America and Citigroup plummeting at least 2.5 percent after reporting a decline in fourth-quarter profits. Best Buy tumbled 13 percent due to concerns over price pressure and sluggish demand. However, mining companies and precious metals, such as copper and gold, saw a slight rebound. The S&P 500 fell 0.4 percent to 2,003.10, while the Dow Jones Industrial Average lost 57.83 points, or 0.3 percent, to 17,369.26.

Key Takeaways:

  • US stocks fell for the fifth consecutive day, with the S&P 500 down 2.5 percent over the past five days.
  • Banks, led by Bank of America and Citigroup, fell at least 2.5 percent after reporting a decline in fourth-quarter profits.
  • Retailers, including Best Buy, suffered losses, with Best Buy tumbling 13 percent due to concerns over price pressure and sluggish demand.
  • Mining companies, such as Newmont Mining Corp., saw a slight rebound, with copper futures gaining 2.9 percent and gold rising 2.2 percent.
  • The S&P 500 has moved in the same direction as commodity prices 10 out of the past 11 trading sessions.
  • Equity futures were whipsawed earlier in the day after Switzerland's central bank unexpectedly dropped its minimum exchange rate.
  • The Swiss National Bank's move aims to reinforce defenses before European Central Bank policy makers meet to discuss quantitative easing.
  • Profit at companies in the S&P 500 index climbed 2 percent in the last three months of 2014, according to analyst estimates.
  • Financial and technology companies had the biggest losses, falling more than 0.7 percent.
  • Apple and Hewlett-Packard Co. dropped more than 2.7 percent.

Statistics:

  • The S&P 500 fell 0.4 percent to 2,003.10.
  • The Dow Jones Industrial Average lost 57.83 points, or 0.3 percent, to 17,369.26.
  • Trading in S&P 500 companies was 32 percent above the 30-day average for this time of the day.
  • Copper futures gained 2.9 percent, and gold rose 2.2 percent.
  • The Chicago Board Options Exchange Volatility Index (VIX) rose 3.8 percent to 22.29.
  • The S&P 500 has moved in the same direction as commodity prices 10 out of the past 11 trading sessions.

Sources:

  • Bloomberg
  • Reuters
  • Bank of America Corp.
  • Citigroup Inc.
  • Best Buy Co.
  • Newmont Mining Corp.
  • Swiss National Bank
  • European Central Bank
  • S&P 500

Read more