Home / Business and Economy / Wall Street Pulls Back: Profit Hopes Clash with Mixed Earnings
Wall Street Pulls Back: Profit Hopes Clash with Mixed Earnings
14 Jan
Summary
- US stocks retreated from records as earnings season began with mixed results.
- JPMorgan Chase missed profit expectations, weighing on market sentiment.
- Moderna's strong forecast and healthcare sector gains offered some market optimism.
US equity markets experienced a pullback from recent record highs on Tuesday, influenced by a cautious start to the latest corporate earnings season. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw declines following a mixed performance from major companies. Investors are scrutinizing results for signs of robust profit growth needed to sustain elevated stock valuations.
JPMorgan Chase initiated the reporting period with profit and revenue figures that fell short of analyst expectations, leading to a 4.2% drop in its stock. Despite this setback, CEO Jamie Dimon expressed optimism about the US economy, noting continued consumer spending and healthy businesses. Delta Air Lines also faced headwinds, with revenue missing targets despite a stronger profit than anticipated.
Conversely, the healthcare sector provided some bright spots. Moderna surged significantly after raising its revenue forecast for 2025 and offering positive updates on its vaccine pipeline. Revvity and Cardinal Health also saw stock increases after issuing optimistic financial outlooks, demonstrating varied performance across different industries as the earnings season unfolds.
