The S&P 500 failed to reach record levels on Wednesday as Wall Street posted varied results from companies including the results from the energy and communication sectors, which fell short on earnings, making the index sink 0.2% to 2,927.25. Furthermore, on Thursday, the index concluded with scarcely lower results. This occurred as a result of a drop in earnings of the industrial stocks. The inadequate result in earnings came from 3M, United Parcel Service Inc and Raytheon Co., bringing the industrial sector down by 1.99% with FedEx also experiencing a fall due to UPS's profit miss. The expanding uneasiness is due to global growth concerns overshadowing the performance of the social networking service company Facebook with shares gaining 5.8% and the tech giant Microsoft  jumping 3.3% as garnering results were better than expected.

Meanwhile, the multinational technology company Amazon rose by 1.17% after the market  closed. This was because of the positive results that the corporation reported which were above expectations on its first quarter. Though its second quarter proved to be the opposite since its revenue calculation went wildy below expectations. The multinational corporation and technology company Intel Corp, experienced a drop in earnings by 7% following the forecast of the chip maker’s revenue falling under analysts’ estimates.

Kristina Hooper, the chief global market strategist at Invesco of New York says that the view of the market is changing due to the mixed results coming from earnings and data. She also stated that we are going to witness changes because we’re presumably going to perceive mixed results from the market. Furthermore, Lindsey Bell the investment strategist at CFRA Research in New York mentioned that presumptions about the index’s earnings for the first quarters have been revamped, but now investors are on alert for the hereafter results. Bell further adds that the estimates for the second-quarter are continuously decreasing and this proves to be a caution for investors as we proceed into a wait-and-see mood when it comes to what route the economy is going to take. Right now, as a result of this, nobody is ready to pour everything into the market.

The index has gained 17% so far this year, recovering from the fall experienced at the end of 2018, hoping for positive drives coming from the U.S.-China trade deal, the Fed’s decision to discontinue the hike in interest rates for this year and a few of the  earnings reports which were above expectations. The index closed Thursday 0.5% below its late September record highs. Meanwhile, its endeavor to break past that level continues as investors anticipate further favorable catalysts.

By: Cyril Latrice Cajanding