S&P 500 narrows losses as tech surge offsets energy, financial weakness Provided by Investing.com
Investing.com — The S&P 500 pared losses on Tuesday, with gains in technology stocks offsetting weakness in energy and financials ahead of a key inflation report.
As of 2:43 p.m. ET (5:43 p.m. GMT), the benchmark was up 0.3%, the tech-heavy index was up 0.7%, and the 30-stock index was down 133 points, or 0.03%.
Stocks are broadly weak ahead of the August consumer price index, due out on Wednesday.
Energy stocks fall as oil prices fall
Energy stocks led the broader market decline, falling 2%, weighed by a more than 4% plunge in crude oil prices as concerns about oversupply grew amid a darkening demand outlook.
OPEC said it expects demand to rise by about 2 million barrels a day this year, down from its previous forecast of 2.1 million barrels in August. It is the second straight time the producer group has revised its forecast downward.
In addition to the weakened fundamentals, bad weather also affected several companies, including oil companies. ExxonMobil (NYSE:), Shell (LON:) and Chevron (NYSE:) said it was halting production and refining operations in the Gulf of Mexico due to Tropical Storm Francine.
According to the National Hurricane Center, the storm is expected to intensify in the coming days.
Financial indicators fall on warning from Wall Street banks
Wall Street banks including Goldman Sachs and JPMorgan led the overall financial sector in declines after issuing a cautious outlook.
JPMorgan Chase & Co (NYSE:) President Daniel Pinto said analysts were too optimistic about their forecasts for next year’s net interest income, sending shares down 7%.
Goldman Sachs Group David Solomon, chief executive of Inc (NYSE:) Group Inc., warned Monday that the bank’s third-quarter trading revenue could fall 10% compared with the same period last year.
EU’s top court rules that Apple’s tech shines despite iPhone 16 reveal
While technology has helped fuel the broader market recovery, Apple (NASDAQ:) continued to trade below its flat line after the European Court of Justice ruled Tuesday that Apple must pay €13 billion in back taxes, overturning a previous ruling that was in the company’s favor.
The news comes a day after the Cupertino-based company unveiled the iPhone 16 on Monday, which will go on sale on September 20 and be available for pre-order starting this Friday, which should help revive slumping sales of the device.
Analysts said the new iPhones and their AI features largely lived up to expectations from Apple’s previously disclosed AI foray into the company, dubbed “Apple Intelligence.”
Oracle shares soar on guidance, Amazon (NASDAQ:) cloud deals; JetBlue reshuffles board amid activist pressure
Oracle (NYSE:) shares surged before the market opened after the company reported better-than-expected fiscal first-quarter results and second-quarter guidance, fueled by strong demand for its cloud business.
The company expects second-quarter 2016 earnings per share of $1.42 to $1.46, beating consensus estimates of $1.33 per share.
JetBlue Airways Corp (NASDAQ:) pared losses and traded flat after the airline said former CEO and Chairman Gary Kelly will retire next year as part of a board shakeup under pressure from activist investor Elliott Investment Management.
(Scott Karnoski contributed to this report.)
