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S&P 500 Turns Negative as Bid in Financials, Tech Fades

Stock MarketsJan 20, 2022 03:46PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 gave up gains Thursday, as rebound in financials and tech stocks following a recent a rout ran out of steam. 

The S&P 500 fell 0.6%, the Dow Jones Industrial Average fell 0.5%, or 158 points, the Nasdaq slipped 0.8%.

Financials turned negative even as investors digested better-than-expected quarterly results from the sector, and bought the recent dip in bank stocks.

The Travelers Companies (NYSE:TRV) jumped more than 3% after the insurance company delivered blowout quarterly results that beat on the top and bottom lines, led by gains in premiums written.

State Street (NYSE:STT), and Bank of New York Mellon (NYSE:BK) -- both of which were under pressure a day earlier following quarterly earnings that fell short of Wall Street forecasts - gained more than 1%.

M&T Bank (NYSE:MTB) and Regional Financials, however, were in the red, after quarterly results missed analysts’ expectations.

Technology's attempts to stage another recovery faded, ahead of the start of quarterly results from big tech, with Netflix (NASDAQ:NFLX) set to report after closing bell.

Ahead of Netflix's results, some on Wall Street have turned less constructive on the steaming media giant’s performance during the fiscal quarter, citing third-party data pointing to underwhelming subscriber additional in the quarter.

“As most Netflix data watchers have noticed, third party data that is used to gauge 4Q net adds has not been encouraging,” Deutsche Bank said in a note last week.

“Our analysis of Google trends data leads us to lower our 4Q net add estimate to 7.25 million, as compared to guidance of 8.5 million,” it added.

Amazon (NASDAQ:AMZN) was the notable decliner among the FAANG names, while Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:FB), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) traded higher.

Energy stocks shrugging off falling oil prices amid data showing that U.S. weekly crude supplies unexpectedly rose.

On the economic front, weekly jobless claims expectedly increased, though economists downplayed the upside surprise, citing the impact of the omicron.

Initial jobless claims rose 55,000 to 286,000 in the week ending Jan.15, a three-month high, confounding expectations for a decline to 225,000.

“It is likely that business disruptions due to the spread of the Omicron variant of COVID had an impact on the data this week. We suspect that these disruptions will prove to be short-lived, but they will create some volatility in the next couple of weeks,” Jefferies said in a note.

In other news, Peloton Interactive (NASDAQ:PTON) is reportedly planning to stop production of connected fitness products amid waning demand, CNBC reported, citing internal documents. Its shares fell 24%.

S&P 500 Turns Negative as Bid in Financials, Tech Fades
 

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Comments (12)
Claudio Morelli
Claudio Morelli Jan 20, 2022 5:54PM ET
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Agenda 2030; by march this year martial law will be applied almost everywhere; money markets will crash and by the end of this year public debt everywhere will be erased wiping out citizens savings’ and the private property will be abolished
Jeremy Johnson
Jeremy Johnson Jan 20, 2022 4:10PM ET
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The "smart money" shorts the market at the top of the Santa Claus Rally, then the Fed says a few words, we hear inflation is higher (is it really a surprise??), some earnings are lack lustre, and some more Americans fileded for unemployment, and the scared "dumb money" continue to sell as fast as possible and at the lowest price.  Then, as always, a bottom will form and the "smart money" will go long leaving all the "dumb money" with heavy losses and emotionally unable to buy the dip out of fear the markets will sell off more.
Chad RicherThanYou
Chad RicherThanYou Jan 20, 2022 4:09PM ET
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I miss orange man
Zane Bardo
Zane Bardo Jan 20, 2022 4:09PM ET
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you need fake pump money to be successful trader/investor?
Sattar Langary
Sattar Langary Jan 20, 2022 3:57PM ET
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biden will lose sooner than 3 years I hope...
Mark McMillan
Mark McMillan Jan 20, 2022 3:55PM ET
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happy inauguration day sell off presented by failed Biden and Company! Today was a reminder of what we will have to deal with for 3 more years!
Mitchel Pioneer
Mitchel Pioneer Jan 20, 2022 3:49PM ET
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Mark your calendars, the laughingstock of the financial world gave up its manufactured "gains".
Zane Bardo
Zane Bardo Jan 20, 2022 3:48PM ET
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The criminals are hard at work after lunch today.
Ricardo Diogo
Rcd72 Jan 20, 2022 3:38PM ET
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headlines? need correction..
Steffen vdm
Steffen vdm Jan 20, 2022 3:35PM ET
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This needs an update...
Sattar Langary
Sattar Langary Jan 20, 2022 3:34PM ET
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Is Biden to blame?
 
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