The S&P 500 index edged down 0.4% last week, led by financial stocks amid some weaker-than-expected earnings in the sector. While this is the second consecutive weekly decline, the S&P 500 is still up 1% for the month.
Quarterly earnings reports were mixed last week. Earnings from financial companies including Capital One Financial and Charles Schwab missed expectations, weighing on the market.
Worries about the technology sector also increased as chip maker Intel issued a weaker-than-expected forecast for the current quarter despite posting higher-than-expected Q4 results.
The energy and materials sector climbed, helping to minimize the S&P 500’s overall drop, as companies including oilfield services company SLB and metals company Freeport-McMoRan still surpassed analysts’ mean estimates.
The financial sector had the largest percentage decline of the week, falling 2.5%, followed by a 2.3% loss in real estate and a 2% drop in utilities. Industrials and technology also moved lower.
On the upside, the energy sector rose 3.1%, followed by a 2.6% advance in materials and gains of 1.1% each in communication services and health care. Consumer staples and consumer discretionary also edged higher.
This week’s earnings calendar features a number of large companies including UnitedHealth Group (UNH), Microsoft (MSFT), Meta Platforms (META), Tesla (TSLA), Apple (AAPL), Visa (V), Mastercard (MA), Exxon Mobil (XOM), Chevron (CVX), American Express (AXP) and Verizon (VZ), among others.
Economic data will include delayed reports on the December producer price index and November durable goods orders. There will also be a two-day meeting of the Federal Reserve’s Federal Open Market Committee, concluding with a rate decision on Wednesday.
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