The three major U.S. equity indexes closed sharply lower on Friday, giving up the gains posted Thursday when the consumer price index report was interpreted as good news. The Dow Jones industrials ended the day down 1.34%, the S&P 500 closed 2.37% lower and the Nasdaq lost 3.08%. All 11 sectors closed lower, with consumer cyclicals and energy (both 3.7%) and materials (3.4%) posting the biggest drops. Health care (0.7%) was the only sector to end the day with a loss of less than 1%.
The first economic data of note due this week is the monthly report on new housing starts and building permits on Wednesday. The monthly report on existing home sales is due Thursday.
All three major indexes were trading higher in the first hour of Monday’s regular session.
Before markets opened on Monday, Bank of America reported better-than-expected adjusted earnings per share (EPS) and revenue. The bank added $898 million to its provision for credit losses, a year-over-year increase of $1.5 billion. The stock traded up 6.6%.
Bank of New York Mellon also reported beating both the top-line and bottom-line estimates. The bank also reported a benefit of $30 million from releasing that amount from its credit loss provisions. The stock traded up 6.4% early Monday.
Charles Schwab also beat estimates on both the top and bottom lines. The firm received net new assets of $115 billion in the quarter, but client portfolios declined by $1.4 trillion due to the plunge in equity prices. Shares traded up about 0.5% Monday morning.
We already have previewed four companies (Albertsons, Goldman Sachs, Johnson & Johnson, Lockheed Martin) set to report quarterly results before markets open on Tuesday. After markets close that day, look for results from J.B. Hunt, Netflix and United Air Lines.
First thing Wednesday morning, the following four companies will report quarterly results.
Abbott Labs
Medical device and generic drug maker Abbott Laboratories (NYSE: ABT) has dropped more than 14% from its stock price over the past 12 months. The stock hit a 52-week low in late September and has bounced higher, then lower in the past two weeks.
A strong dollar is not helping a company that rakes in about 60% of its revenue from overseas sales. That is in the same ballpark with Caterpillar, Exxon Mobil and Meta Platforms. A new problem with the bottle caps on some liquid Similac infant formula has forced the company to order another (but much smaller) recall than the one in February.
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