S&P 500 flat as chipmakers fall and bank earnings roll in
SPY•The S&P 500 was nearly flat as chip stocks extended losses and investors assessed mixed bank results: Citigroup and Goldman Sachs beat profit estimates, while Wells Fargo missed net interest income expectations. The S&P 500 slipped 0.02%, the Nasdaq fell 0.13% and the Dow lost 0.33%.
1. Stocks trade near flat
The S&P 500 was down 0.02% at 7,805.51 points on Tuesday, while the Nasdaq fell 0.13% and the Dow Jones Industrial Average dropped 0.33%. Chip stocks added to recent losses as investors parsed quarterly results from major U.S. banks.
2. Chip stocks extend losses
The PHLX chip index fell 1.2%, its fifth consecutive session of losses. Micron Technology dropped 5.4% and Applied Materials lost 8%, while Broadcom was near flat. Concerns about Chinese memory-chip competition followed reports of technological advances by CXMT; Broadcom CEO Hock Tan had likened some sector investment to “casino gambling.”
3. Bank and company results
Citigroup fell 4.1% and Goldman Sachs rose 0.2% after both topped profit estimates. Wells Fargo lost 2.2% after net interest income missed estimates, while JPMorgan Chase fluctuated after a rare profit miss. Apple touched an intraday record of $348.15 and was last up 0.6%; its market value was $5 trillion. Johnson & Johnson fell 6% despite topping profit estimates, Bumble jumped 56% after agreeing to a $1.3 billion take-private deal, and Domino’s Pizza lost 3.2% after scaling back its full-year sales outlook.
