US stocks fell on Monday, under pressure from declines in the\nstock prices of Boeing and General Electric. Wall Street digested the strong\ngains recorded during the previous week and looked forward to the start of the\ncorporate earnings season.<\/p>\n\n\n\n
The Dow Jones Industrial Average was down 109 points. Meanwhile,\nthe Standard & Poor’s 500 Index lost 0.1% as the industrial sector fell\n0.9%. The Nasdaq composite was down 0.2%.<\/p>\n\n\n\n
Boeing shares fell more than 3.5% after Bank of America Merrill\nLynch cut the company\u2019s rating to neutral from buy. The bank said that it\nexpects Boeing to postpone the\nproduction of the 737 Max Jet for six to nine months.<\/p>\n\n\n\n
Meanwhile, GE shares fell more than 6% after JP Morgan lowered\nits target price to $5 from $6 per share, believing that many investors\nunderestimate the severity of the challenges and risks faced by GE, while\novervaluing a few small positive factors.<\/p>\n\n\n\n
The declines came on Monday after major equity indexes posted\ntheir second weekly gain in a row last week, supported by advances on the\nUS-China trade talks and strong jobs report data. On Friday, the Labor Department said 196,000 jobs had been\ncreated in March, according to President Donald Trump.<\/p>\n\n\n\n
Market analysts consider that investors rode a hot hand last\nweek, and that the investors\u2019 focus will shift to quarterly corporate results\nas the earnings season begins on Friday. JP Morgan Chase and Wells Fargo are\nscheduled to report that day.<\/p>\n\n\n\n
Wall Street expects this earnings season to be a difficult\nseason. Standard & Poor’s 500 earnings in the first quarter are expected to\nfall by 4.2% YoY, according to FactSet. That would be the first contraction in\nearnings for the S & P 500 since the second quarter of 2016.<\/p>\n\n\n\n
“From our perspective, the market will need beat and raise\nresults in order to justify the premium valuation against the current economic\nand geopolitical backdrop,\u201d<\/p>\n\n\n\n
In terms of data, factory orders for February fell by 0.5% amid\nweakness in the sectors of machinery, transportation equipment and electronic\nproducts. However, shipments rose by 0.4%. Treasury yields also recorded gains\non the data. The 10-year rate rose to about 2.51% while the 30 year yield was\ntrading at 2.925%<\/p>\n\n\n\n
Snap shares gained more than 3% after RBC Capital Markets\nupgraded the social networking company to outperform the sector, citing\n“potential for a positive inflection point catalyzing”.<\/p>\n","protected":false},"excerpt":{"rendered":"
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