Recovering losses, S&P sees small gain

Wall Street watching Fed’s stance, earnings

Wall Street capped a wobbly day of trading with mixed results Wednesday, as a rally in technology stocks was kept in check by a slide in banks and energy companies.

The S&P 500 eked out a

0.1 percent gain after recovering from an early stumble and then losing much of its momentum by late afternoon. The benchmark index recovered some of its losses from a day earlier, but finished just short of its alltime high set on Monday.

The Nasdaq composite slipped 0.2 percent despite gains by several big tech companies including Apple. Small-company stocks continued to lag the broader market.

Investors had a mixed reaction to a new batch of earnings news from banks, airlines and other companies and the latest report showing another rise in inflation. They also kept an eye on the latest comments on inflation from the Federal

Reserve chair, who reaffirmed the Fed’s view that the surge in costs across the economy is temporary.

“Investors right now are focusing on earnings because they are still buying what the Fed is saying about inflation (and) that it’s too early to start to raise rates and potentially slow a reopening economy,” said Sam Stovall, chief investment strategist at CFRA.

The S&P 500 rose 5.09 points to 4,374.30. The Dow Jones Industrial Average added 44.44 points, 0.1 percent, to 34,993.23. The Nasdaq

slipped 32.70 points to 14,644.95. The Russell 2000 index of smaller companies slid 36.51, 1.6 percent, to 2,202.36.

Wall Street is watching the latest round of earnings for confirmation about the scale and pace of the economic recovery as people return to work, travel again and try to get back to some semblance of normal after the worst of the virus pandemic.

Banks mostly fell even after several of them turned in solid earnings reports. Citigroup gave up an early gain and fell 0.3 percent despite reporting a more than fivefold rise in profits, helped by an improving economy that resulted in fewer bad loans on the bank’s balance sheet.

Wells Fargo rose 4 percent for the biggest gain in the S&P 500 after reporting its most profitable quarter in two years.

Mixed results from Bank of America disappointed investors. It fell 2.5 percent after reporting solid profits, but weak revenue.

Airlines showed more signs of recovery as people begin to resume travel for work and leisure. American Airlines rose 3 percent after giving investors an encouraging update on its second-quarter financial picture.