Mixed earnings dampen recent Wall Street rally
The S&P snapped a three-day winning streak yesterday after mixed earnings reports and a fall in consumer confidence, but analysts said US stocks were taking a breather and the rally could pick back up.
Solid earnings from Dow component DuPont and Cummins cheered investors, but that was offset by gloomy comments from steelmakers, including US Steel and AK Steel Holding.
“I still have a favourable view of the market, but I think the extreme move in the last few days warrants some consolidation or pullback,” said Nick Kalivas, senior equity index analyst at MF Global in Chicago.
The Dow Jones industrial average added 12.26 points, or 0.12 per cent, to 10,537.69. The Standard & Poor’s 500 Index dipped 1.17 points, or 0.10 per cent, to 1,113.84. The Nasdaq Composite Index shed 8.18 points, or 0.36 per cent, to close at 2,288.25.
Economic data was mixed. Home prices rose in May, but labour-market worries took July consumer confidence to its lowest since February.