On Tuesday, all three key indices of Wall Street had wrapped up the day almost dithered, mostly catalysed by investors’ concerns over a $1.9 trillion in pandemic stimulus bill proposed by the US President Joe Biden earlier this month, while S&P 500 closed out the day marginally lower after hitting an all-time peak earlier in the day as pandemic-wary investors were seemingly grappling with a record rise in pandemic cases alongside a raft of upbeat of corporate earnings’ reports.
In factuality, had this been a normal earnings’ season with more practical spaces for Wall St.’s indices to inflate further, US stocks should have been on the cloud nine since 84 out of 86 companies which had reported quarterly earnings’ report so far, had surpassed analysts’ estimates, suggested analysts.
Nonetheless, as a slew of US stocks tread water on Tuesday, several analysts were quoted saying that a growing uncertainty over Biden’s proposed $1.9 trillion in pandemic stimulus bill, had been weighing on investors’ morale, while investors seemed to have downplayed a deluge of upbeat economic data released this week.
However, strong quarterly earnings’ result from 3M lifted its shares’ prices as much as 3.03 per cent higher which eventually became the biggest boost for Dow, while a 2.52 per cent rise in the shares’ prices of Johnson & Johnson offset impacts of a sheer reversal of market participants’ morale.
Wall St. closes out flatlined as investors stomached earnings’ reports
Citing statistics, in the day’s Wall Street round off, the trade-sensitive Dow added 0.03 per cent to 30,968.29 and S&P 500 shed 0.02 per cent to 3,854.5, while Nasdaq rose 0.07 per cent to wind down the day at 13,644.94.
Meanwhile, addressing to investors’ caution over a growing uncertainty about the course of a pandemic-battered US economy, a Senior portfolio strategist at RBC Wealth Management in Minneapolis, Tom Garretson said, “Even though the expectations for the earnings recovery are pretty robust, at this stage it is still going to be a situation where there is not going to be a whole lot of visibility on earnings given the depths of the pandemic and uncertainty in the path ahead.
So at this stage that is probably why the market seems a bit more comfortable, because it is a little trickier than usual to put the right valuation on things. ”