NEW YORK — A late round of buying erased early losses on Wall Street on Wednesday, leaving major indexes mixed at the close of trading. Bigger companies eked out modest gains, while smaller ones mostly fell.
A big gain in Boeing pushed the Dow Jones industrial average higher, breaking a five-day losing streak.
The aerospace company topped Wall Street’s estimates in the first quarter and raised its forecasts for the year. Its stock gained 4.2 percent to $342.86 and railroad operator Norfolk Southern climbed 8.1 percent to $145.96 after it, too, surpassed analyst projections.
Stocks got off to a weak start Wednesday as investors worried that growing costs for raw materials along with rising interest rates would hold back profit growth for U.S. companies.
Stocks tumbled Tuesday after companies including Caterpillar, 3M and Sherwin-Williams said they’re seeing higher costs.
On Wednesday, Goodyear Tire & Rubber said higher raw materials costs and weaker demand hurt its business in the first quarter. Its stock fell 5.1 percent to $25.51.
Invesco Chief Global Market Strategist Kristina Hooper said investors are starting to worry that the market’s best days are behind it. She noted that wages are rising, as unemployment has been at multidecade lows for the last few years. That means costs for companies are up. Oil prices have also jumped and investors are worried that new tariffs will also drive up costs and affect company earnings in the months to come.
“I wouldn’t be surprised if earnings peaked by the end of this year, but certainly they haven’t peaked yet,” she said.
The S&P 500 index on Wednesday added 4.84 points, or 0.2 percent, to 2,639.40. The Dow rose 59.70 points, or 0.2 percent, at 24,083.83. The losing streak was its longest in more than a year.
The Nasdaq composite dipped 3.61 points, or 0.1 percent, to 7,003.74. The Russell 2000 index of smaller-company stocks lost 2.81 points, or 0.2 percent, to 1,550.47. Most stocks on the New York Stock Exchange fell.
Investors expected strong profit growth this year thanks to the growing global economy and tax cuts President Trump signed last year. That optimism helped send stocks to record highs in January. Now investors are worrying about whether that growth will show up.
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