Earnings enthusiasm meets selling pressure
U.S. stocks finished slightly lower on October 13, but the closing changes conceal a choppy session. AP reported that Goldman Sachs surrendered its opening earnings rally, while concerns about competition from China’s CXMT weighed on chip stocks. Strong profits offered insufficient reassurance to keep buyers chasing prices near their highs.
The Dow chart shows a fall of roughly 0.5% or more shortly after the open, Eastern Time, followed by an inability to regain its previous close. The fading earnings rally offers the clearest explanation for that early reversal. The Nasdaq 100 also failed to sustain its initial rebound and returned toward its morning lows. Concerns about chip competition restrained technology buying more broadly than any single earnings release could support.
An uneven recovery
The S&P 500 recovered from its morning dip and approached its previous close in the afternoon. The Nasdaq 100 recovered without reaching that level, while the Dow’s rebound remained weak. This looks like selective buying alongside reluctance to chase chip and earnings-sensitive stocks, rather than indiscriminate liquidation.
On the rolling 24-hour chart, USD/JPY trended lower and recovered after an intervening dip. AP’s reported decline in oil and Treasury yields provided a backdrop for softer dollar demand. Waiting for the next day’s CPI release, highlighted by Schwab that morning, likely also discouraged chasing the rebound. Recovering prices did not translate into broader conviction while investors awaited both earnings and inflation evidence.
Closing levels: AP’s final table and Nasdaq.
Major Index Closes
- S&P 5007,805.45 −0.02%
- NASDAQ 10030,569.48 −0.31%
- Dow Jones 3051,670.10 −0.35%
