By Herbert Lash and Marc Jones
NEW YORK/LONDON (Reuters) – A measure of global equity markets slid from near record highs, the dollar edged higher and bond yields fell on Thursday as investors mulled the Federal Reserve’s benign inflation outlook and upbeat assessment of the U.S. economy.
The number of Americans filing new claims for unemployment benefits fell to a 16-month low last week as the U.S. labor market steadily gains traction while other data showed import prices rose solidly in June but have likely peaked.
Wall Street traded lower even as the four largest U.S. consumer banks posted blockbuster second-quarter results earlier this week that were above analysts estimates. Financials were the biggest S&P sector to advance, followed by industrials and materials. The other eight sectors fell.
“Guidance is the name of the game. A lot of good news is already baked into the market and even with strong guidance, you may get a breather here,” said Tom Hayes, founder and managing member of Great Hill Capital LLC.
Analysts expect strong earnings, with IBES data from Refinitiv showing consensus looking for a 65.8% gain from a year ago, making corporate guidance more important than results.