Stocks tread water ahead of earnings deluge

Credit: Reuters Studio
Published on April 22, 2019 - Duration: 01:45s

Stocks tread water ahead of earnings deluge

U.S. stocks were little changed Monday as investors prepared for the busiest week so far in this quarterly corporate reporting season.

Conway G.

Gittens reports.

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Stocks tread water ahead of earnings deluge

Wall Street was in a holding pattern Monday as investors get ready for this week's deluge of corporate earnings.

The Dow finished modestly lower, while the S&P 500 and the Nasdaq crept slightly higher.

Investors are bracing for what could be the first drop in quarterly earnings since 2016 but Kevin Mahn of Hennion and Walsh thinks there's a surprise waiting for investors.

SOUNDBITE (ENGLISH): KEVIN MAHN, CHIEF INVESTMENT OFFICER/PRESIDENT, HENNION & WALSH, SAYING: "The theme we see at Hennion and Walsh in 2019 is slowing, but growing.

Yes, the pace of earnings grow is going to slow.

Yes, the pace of economic growth is going to slow but there's still going to both grow.

We actually think there will be a positive year-over-year gain for earnings after all is said and done for Q1." High-profile management shake-ups caught Wall Street's attention.

Bed Bath and Beyond replaced some board members including two co-founders.

The decision was largely in reaction to pressure coming from two activist investors calling on the entire board and the company CEO to be fired.

Some investors were less than impressed with the changes and pushed the stock 4 percent lower.

Kraft Heinz has a new CEO.

The food conglomerate replaced CEO Bernardo Hess with an executive from Anheuser-Busch InBev - Miguel Patricio.

Job #1 for the new leader: revitalizing some of the world's most popular food brands following a $15 billion write-down announced in February.

This CEO announcement failed to impress investors as well.

Former Republican presidential candidate Herman Cain is out as a choice to take a seat at the Federal Reserve.

Trump's nominee faced stiff opposition from some economists and critics - and members of his own party.

And oil prices hit a six-month high as the U.S. tries to stop countries from buying Iranian oil.

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