(Monday Market Open) The first full week of earnings gets underway today with the investors perhaps still wiping their collective brow from all the ups and (mostly) downs of the last few sessions. Stocks fell 4% last week in the worst plunge since February, and major indices start the week back near July levels.
It may be a new week, but the market apparently hasn’t shed all the negative sentiment that characterized last week’s action. Weakness in Asia and Europe overnight appeared to help set the tone on Wall Street, where stocks fell in pre-market trading. Retail sales data for September out this morning didn’t appear particularly helpful, rising just 0.1% when Wall Street analysts had been expecting 0.6%, on average. It was the second straight month of tepid retail sales growth and might cause some concern about the state of consumer demand.
In earnings, banks remain in the spotlight, with Bank of America (BAC) reporting today and Goldman Sachs (GS) and Morgan Stanley (MS) tomorrow (see more below).
Bank of America earnings of 66 cents a share beat the third-party consensus estimate of 62 cents, while revenue of $22.777 billion pulled in just above the
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The market finished the week 4% lower, but might have left investors with some positive vibes after rallying most of the day Friday and making better than 1% gains. Next week brings more bank earnings.
There seems to be a more positive tone on Wall Street to start the day after the six-day losing streak and sharp weekly losses. Bank earnings this morning kicked off reporting season.
Thursday was the second day in a row of big losses for the stock market, and the Nasdaq hit correction territory, down 10% from recent highs. Energy and financials were among the sectors getting slammed, but info tech help up a little better.
The huge U.S. sell-off Wednesday hit foreign markets early Thursday, but now Treasury yields are starting to fall and the monthly inflation reading might be giving stocks a bit of support.
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