U.S. stocks drop as weak earnings, China hurt sentiment - BNN Bloomberg

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Stocks dropped as a flurry of negative earnings updates tested the recent bullish mood among investors. The dollar gained.

BMW AG fell more than six per cent as auto stocks led declines in European equities, after the car maker warned of rising costs. Hedge fund firm Man Group Plc slumped as core net revenue missed estimates. Disappointing guidance dragged down logistics giant DHL Group, while miners fell on weak China data.

There are signs of a pause in the upbeat tone that has boosted equities this year, as traders prepare for major risk events in the next few days, including a Bank of England interest rates decision on Thursday and U.S. employment figures Friday. The line-up of blockbuster earnings still to come before the week is out includes tech heavyweights Apple Inc. and Amazon.com Inc.

Chief Investment Strategist John Stoltzfus raised his year-end price target on the index to 4,900, leaving room for a near seven per cent advance through the end of the year, the most bullish among Wall Street strategists tracked by Bloomberg. The S&P 500 would end the year about 28 per cent higher if his forecast materializes, the best performance since 2019.

 

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