Connect with us

Hi, what are you looking for?

Top Stories

Top News

Stocks – Dow Falls as Economic Data, Earnings Dent Hopes of V-Shaped Recovery

imageStock Markets11 hours ago (Apr 15, 2020 04:08PM ET)

(C) Reuters.

By Yasin Ebrahim

Investing.com – The Dow closed above session lows on Wednesday, but investor sentiment got a gut check as dire economic data and earnings dampened hopes of a quick economic recovery.

The Dow fell 1.86%, or 445 points, but had fallen by as many as 716 points at the lows of the day. TheS&P 500 slipped 2.2% and the Nasdaq Composite fell 1,44%.

Growing expectations the economy is set to open sooner rather later has underpinned investor hopes it could be set for a robust recovery, but economic data, including a record plunge in retail sales, suggested the optimism may have been overdone.

The Commerce Department said on Wednesday that retail sales fell 8.7% last month, confounding economists’ forecasts for an 8% decline. But the retail sales control group – which has a larger impact on U.S. GDP – rose 1.7%, compared with a forecast for a 2% decline.

Manufacturing activity in New York, which had already been under pressure pre-coronavirus pandemic, deteriorated further, also fell a record low reading of -78.2.

Underscoring the impact of the Covid-19 pandemic, the Federal Reserve’s Beige Book economic report warned further job cuts are expected in the coming months and the economic conditions are set to worsen.

The bleak outlook on the labor market comes just a day ahead of the weekly jobless claims report due Thursday.

On the earnings front, meanwhile, Wall Street banks continue to flag further economic uncertainty ahead.

Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Bank of America (NYSE:BAC) reported a widely-expected plunge in profit, with latter closing more than 6% lower.

The trio of banks also increased their reserves for credit losses by billions of dollars amid expectations for a jump in loan defaults from customers in the coming months.

Energy led the broader market, paced by a decline in oil prices to more than an 18-year low despite reports the White House is mulling plans to pay drillers to stop production in order to combat the glut in crude supply and save jobs.

Fears over a glut in supplies, led by a coronavirus-led hit to demand intensified as the Energy Information Administration reported a weekly crude build of 19.25 million barrels.

Stocks – Dow Falls as Economic Data, Earnings Dent Hopes of V-Shaped Recovery

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Top News

Nikola, an electric truck startup, saw its stock price fly high as it went public and announced a deal with General Motors. A damning...

Stock

Stock Markets8 minutes ago (Jul 31, 2020 07:50PM ET) (C) Reuters. FILE PHOTO: James Murdoch, the son of media mogul Rupert Murdoch, and his...

Editor's Pick

TikTok is one of the most rapidly growing platform. People across all the spectrum of age, gender, communities are joining the platform to...

Top News

SEC probing Nikola Motors over short-seller claims of fraud – Business Insider Business Insider logoThe words “Business Insider”. 2020-09-14T23:20:04Z Massimo Pinca/Reuters The Securities and...

Disclaimer: SecretsOfRichDads.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 Secrets Of Richdads. All Rights Reserved.

    Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!