Dow Lags S&P 500 and Nasdaq with Triple-Digit Fall
The Dow Jones Industrial Average declined by as much as 185 points on Monday, reflecting a tepid pre-market for U.S. stock futures. It was last down 102 points, or 0.4%, at 26,322.31.
Shares of Boeing Co (BA) plunged 4.6% after the company announced Friday it would temporarily cut production of its best-selling 737 MAX 8 jets. Bank of America Merrill Lynch immediately lowered its rating on the stock to neutral’ from ‘buy.’
The broad S&P 500 Index of large-cap stocks edged down 0.1% to 2,891.26. Utilities and industrial companies were the biggest drags on growth.
The technology-focused Nasdaq Composite Index was trading at 7,942.04, where it was virtually unchanged.
U.S. stocks just rounded out their best quarter since the financial crisis. Read more: S&P 500 Sees Best Start to a Year Since 1998.
U.S. Stock Market Lurches Toward ‘Moment of Truth’
The U.S. stock market faces a “moment of truth” as investors begin shifting their focus back to fundamentals and away from monetary policy, according to Morgan Stanley. In a research note published Monday, the bank’s chief U.S. equity strategist Michael Wilson said first-quarter earnings could be “gut check” time for Wall Street.
“The moment of truth may be arriving with first-quarter earnings results,’’ Wilson said, according to Bloomberg.
The outlook may be about to change as S&P 500 companies get ready to deliver their latest financial results. For the first time since 2016, corporate earnings are expected to decline year-over-year. According to FactSet, industries such as energy, materials and information technology are expected to be the hardest hit.
Reporting season picks up later this week with a pair of results from JPMorgan Chase & Co (JPM) and Wells Fargo & Co (WFC).
This article was first seen on CCN and can be found here: https://www.ccn.com/dow-on-shaky-ground-as-u-s-stock-market-approaches-moment-of-truth