U.S. equities and stock exchange traded funds slightly weakened Friday on underwhelming corporate earnings and data showing economic growth cooled in the fourth quarter.
The S&P 500 Index, along with related funds including the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO), were 0.2% lower Thursday.
The unimpressive corporate results gave little reason to investors to keep U.S. stocks pushing toward new heights after Chevron revealed quarterly profits falling short of expectations, reports Saqib Iqbal Ahmed for Reuters.
“Earnings have really just been fine,” David Lyon, global investment specialist at J.P. Morgan Private Bank, told Reuters “They haven’t been too hot, nor have there been any concerns or cautionary flags raised. I think ‘fine’ might not be enough in the near-term, and there is a growing concern that while the numbers have been good, the forward guidance have been just okay.”
Additionally, stocks lost a step after the Commerce Department revealed gross domestic product rose at a 1.9% annualized rate last quarter, compared to the prior quarter’s 3.5% expansion, due to the biggest drag from trade in six years and moderate consumer spending, reports Sho Chandra for Bloomberg.