Wall Street ended lower after bank stocks erased earlier gains and Apple shares fell on a report saying the company plans to slow hiring and spending growth next year.
STORY: U.S. stocks reversed course Monday, ending lower after seeing gains earlier in the day, after a report said Apple plans to slow hiring and spend less next year.
The Dow ended down about seven tenths of a percent, while the S&P 500 and Nasdaq both fell about eight tenths of a percent, after seeing solid gains in the morning.
Shares of Apple dropped 2% after Bloomberg reported that the world’s most valuable company plans to slow hiring and spending for some units next year to cope with a potential economic downturn.
Bank stocks shed earlier gains but stayed in positive territory after Goldman Sachs and Bank of America both reported smaller-than-expected declines in profit.
Sam Stovall, chief investment strategist at CFRA Research, noted that the banks are also shoring up for a likely recession.
“Overall, the banks are loading up on their bad debt reserves because they anticipate that we’re likely to fall into a recession in the coming year. And so they’re making sure that they prepare for it. Now, we’re finding that the initial public offerings, we’re finding that investment banking activities in general are very, very weak. However, we have been seeing an improvement in trading because with the markets being very, very volatile, that’s where they make their money. So, in general, the financials have not done well on a price basis in anticipation of the weaker-than-expected earnings.”
Subscribe to us on Youtube to Get the Latest News:
https://www.youtube.com/channel/UCRuQYkYlu7KVEVHxxtTO72g
BIZNOB – biznob – Noun, a business leader of social importance.
A publication of iConcept Media Group, the BIZNOB is a daily business journal, covering business news with a focus on emerging leaders but not limited to technology, entertainment, finance, politics, and lifestyle. BIZNOB’s mission is to deliver news and information that matters among business professionals. The publication strives to be on the homepage of the world’s business community.
Join us as a member and the ensuing conversation. Make your contribution on hot topics of the day with comments, polls, and forums. You can also gain insider access to ticket discounts, members-only events, and behind-the-scenes emails.
Get the latest Business news on: www.biznob.com
Follow BIZNOB on Facebook: https://www.facebook.com/thebiznob
Follow BIZNOB on Twitter: https://www.twitter.com/thebiznob
Follow BIZNOB on Instagram: https://www.instagram.com/thebiznob
SUPPORT BIZNOB NETWORK
Your support, a donation will help us build and create a world’s business community. Help us continue to dig up and narrate the most significant stories of Business in our time.