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U.S. stock indexes opened lower on Wednesday as tech behemoths Alphabet and Microsoft delivered a mixed picture of earnings while bond yields rose ahead of inflation data on Friday and decisions by the Federal Reserve next week.
How are stock indexes trading
-
The S&P 500
SPX
dipped 34 points, or 0.8%, to 4,213 -
The Dow Jones Industrial Average
DJIA
fell 50 point, or 0.1%, at 33,098 -
The Nasdaq Composite
COMP
eased 176 points, or 1.4%, to 12,960
On Tuesday, the Dow industrials rose 0.62%, to 33,141, the S&P 500 increased 0.7%, to 4,248, while the Nasdaq gained 0.93%, to 13,140.
What’s driving markets
The mood in stocks was cautious as investors awaited the next installment of a third-quarter corporate earnings reporting season that so far has been afforded a mixed reception by the market.
With nearly a quarter of S&P 500 companies having reported, 81.4% of those beat analyst expectations, notably better than the 67% of beats in a typical quarter since 1994, according to data from LSEG.
However, high bond yields are weighing on sentiment with the yield on the 10-year Treasury
BX:TMUBMUSD10Y
up 7 basis points to 4.890% ahead of September inflation data on Friday and a Federal Reserve policy decision next week.
As a result analysts noted that the stock market was struggling to make headway. “A sharp, high breadth equity rally is needed nearly right away to prevent selling pressure into late October,” said Mark Newton, head of technical strategy at Fundstrat. “Given the degree of broader market weakness, the burden of proof is certainly on the bulls,” he added.
Companies releasing their results on Wednesday include Boeing
BA,
T-Mobile
TMUS,
and General Dynamics
GD,
before Wall Street’s opening bell, followed by Meta Platforms
META,
IBM
IBM,
and ServiceNow
NOW,
after the close.
U.S. economic updates set for release on Wednesday include new home sales for September, due at 10 a.m. Eastern.
Companies in focus
-
Microsoft Corp. shares
MSFT,
+3.26%
rallied 3.8% on Wednesday morning after the company posted better-than-expected growth in the company’s Azure cloud-computing unit. -
Alphabet Inc.’s stock
GOOG,
-8.44% GOOGL,
-8.42%
dropped 8.9% after the Google parent’s better-than-expected results were overshadowed by the relatively weak performance for the company’s Google Cloud platform. -
Texas Instruments Inc.
TXN,
-4.15%
was 3.2% lower after the company missed quarterly forecasts and guided to earnings below Wall Street estimates. -
Boeing Co.
BA,
-2.56%
fell 0.5% on Wednesday after the aerospace and defense giant reported a wider-than-expected loss but topped revenue expectations and affirmed the full-year outlook for free cash flow.
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