3M, Johnson & Johnson Stocks Tumble Amid Quarterly Earnings Reports

Summary

  • 3M’s shares plummeted by 12.4% following its gloomy annual earnings prediction. Johnson & Johnson also fell by 1.6%, although its quarterly results slightly exceeded expectations. D.R. Horton suffered a 9% loss in shares due to missing first-quarter profit forecasts.
  • Despite economic uncertainties, some stocks like Procter & Gamble and Verizon Communications saw gains of 4.4% and 5.6% respectively, the latter foreseeing a profitable year and the highest quarterly subscriber numbers in nearly two years.
  • Firms with holdings in S&P 500 that have reported results so far show that 86.6% have exceeded earnings expectations.
  • Wall Street began 2024 on a shaky footing, jolted by varying inflation data and Federal Reserve’s move to curb speculation of interest-rate cuts before March this year.

Market Movements and Predictions

The S&P 500 companies boasted strong performance, with a vast 86.6% already exceeding earning expectations, LSEG data revealed. Despite this, experienced market analyst Sameer Samana from Wells Fargo warned of falling earnings in all equity classes due to an anticipated slow down in the economy and stalling revenue growth.

On the technological side, the performance of the so-called “Magnificent 7” mega-caps, along with other major tech-centric firms, will act as a barometer for the S&P 500’s future gains and validate their soaring valuations.

Tech Industry’s Influential Players

Among these high-profile companies, Netflix is scheduled to disclose earnings after the market closes, while Tesla is expected to release reports on Wednesday.

Blue-chip Dow and Wall Street’s Shifts

The blue-chip Dow surpassed, for the first time, the 38,000-point mark earlier this week, marking a third consecutive day of gains. Meanwhile, Wall Street started 2024 on a somewhat shaky note, impacted by diverse inflation data and the Federal Reserve’s intervention to suppress early concerns of interest rate cuts.

Impact on Forex and Trading

These aforementioned market movements and predictions hold substantial implications for the forex trading and stock market. Specifically, the fluctuating shares and forecasts of major corporations like 3M, Johnson & Johnson, and D.R. Horton could alter the asset value and trading strategies of investors.

Final Market Performance

Finally, at 11:35 a.m. ET, the Dow Jones Industrial Average had descended 191.96 points or 0.51% while the S&P 500 went down by 5.85 points, or 0.12%. Nasdaq was also seen decreasing by 22.65 points, or 0.15%.

PIP Penguin
Logo