U.S. stocks ended the day in the red, continuing last week's sharp drop following comments from Fed Chairman Jerome Powell last Friday that heightened inflationary concerns. During the Fed symposium in Jackson Hole, Wyoming, Powell signaled that "pain" could be felt by businesses and households alike as the Central Bank continues its aggressive monetary policy with the goal of restoring price stability. Treasury yields continued to climb, with the yield curve steepening, though the U.S. dollar remained subdued after hitting fresh multi-decade highs early last week. Crude oil prices rallied while gold moved modestly lower. As earnings season is heading to a close, shares of Catalent fell after issuing disappointing guidance, while Pinduoduo rallied after reporting stronger-than-expected Q2 earnings and revenues. The economic calendar was relatively quiet today, but data on Dallas manufacturing activity showed that the index remained in contraction territory despite a slight improvement. Asia finished mostly lower, but China nudged higher. Europe moved broadly to the downside, while U.K. markets were closed for a holiday. The global markets continued to grapple with Friday's hawkish commentary by Fed Chair Powell.
The Dow Jones Industrial Average was down 184 points (0.6%) to 32,099, the S&P 500 Index declined 27 points (0.7%) to 4,031, and the Nasdaq Composite lowered 124 points (1.0%) to 12,018. In moderate volume, 3.4 billion shares of NYSE-listed stocks were traded, and 4.1 billion shares changed hands on the Nasdaq. WTI crude oil gained $3.95 to $97.01 per barrel. Elsewhere, the gold spot price modestly decreased $0.40 to $1,749.40 per ounce, and the Dollar Index was mostly unchanged at 108.42.
Catalent Inc. (CTLT $92) reported adjusted fiscal Q4 earnings-per-share (EPS) of $1.19, above the $1.15 FactSet estimate, as revenues rose 15.0% year-over-year (y/y) to $1.31 billion, just below the Street's forecast of $1.33 billion. The healthcare technology and development company issued full-year guidance that came in south of projections. Shares traded lower.
Pinduoduo Inc. (PDD $66) rallied over 20% after the Chinese e-commerce behemoth reported revenues and earnings that came in stronger than expected for Q2. The company noted that it saw gradual recovery in consumer sentiment in the second half of the quarter.
Q2 earnings season is mostly in the books and of the 485 S&P 500 companies that have reported thus far, roughly 63% have topped revenue forecasts and approximately 75% have bested profit projections, per data compiled by Bloomberg. Compared to last year, revenue growth is tracking to be up 13.9% and earnings are 7.3% higher.