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S&P Down For Seventh Day in Eight
Caroline Valetkevitch, Reuters - A surprise decline in June retail sales was the latest worrying sign from the economy, pushing stocks slightly lower on Monday, but Citigroup shares limited losses after it reported earnings.
The S&P 500 has fallen in seven of the past eight sessions, pressured by concerns about economic growth. Still, in a sign of resilience, the index is up roughly 7 percent from a low hit early in June despite the worsening economic data.
Trading volume at 4.95 billion shares on the NYSE, Amex and Nasdaq was the second lightest day this year, according to preliminary data from Reuters.
The drop in retail sales in June, the third consecutive monthly decline, contrasted with economists’ expectations for a small increase and was the latest sign the recovery is flagging.
Citigroup’s earnings, which exceeded estimates, followed JPMorgan Chase’s (JPM.N) estimate-beating earnings on Friday, which sparked a rally and broke a six-day streak of losses by the Dow industrials.
Shares of Citigroup (C.N) gained around 0.6 percent to $26.81. Although the third largest U.S. bank by assets reported stronger-than-expected earnings, its profit fell 12 percent due to losses from credit crisis-era assets.
Giri Cherukuri, head trader at OakBrook Investments, which oversees $1.3 billion in Lisle, Illinois, said there was a tug-of-war between better-than-expected earnings in the financial sector and worries about the economy.
“The next week or so the market will be driven more by earnings than economic numbers,” he said, noting that recent cautious outlooks from U.S. corporations could translate into disappointing earnings as reporting season unfolds.
Read the rest of the story at Reuters here.
The Common Good publishes a financial market wrap-up every weekday after markets close.